Novae Group Regulatory News (NVA)

27 May 2005 07:00

SVB Holdings PLC27 May 2005 SVB HOLDINGS PLC Q1 2005 Syndicate Forecasts SVB Syndicates Limited, the Lloyd's managing agency owned by SVB Holdings PLC(SVB), today announces updated quarterly forecasts for its managed syndicatesfor the 2003 and 2004 Years of Account, together with the 2002 run-off Year ofAccount, as well as commenting on trading to date in 2005. •Forecast ranges remain unchanged for the 2002 (in run off), 2003 & 2004 Years of Account £€5 million utilisation of the exceptional provision for discontinued units in Q1; £62m of the provision remains unutilised. •Premium rates generally steady (3% reduction in first four months of 2005). 2004 Year of Account Syndicate Capacity Owned by Current Forecast Previous Forecast £m SVB (%) % % 1007 215.6 81.9 7.5 - 15.0 7.5 - 15.0 2147 286.4 100.0 5.0 - 12.5 5.0 - 12.5 Syndicate 1007: The net incurred loss ratio at this stage is 6% (2003: 2%, 2002: 7%), boding favourably for the full year result. Syndicate 2147: The net incurred loss ratio of 35% at this stage reflects thescale of windstorm activity in the second half of last year (2003: 13%, 2002: 22%), our assessment for which remains unchanged. In other respects claims experience has been favourable. 2003 Year of Account Syndicate Capacity Owned by Current Forecast Previous Forecast £m SVB (%) % % 1007 151.0 79.1 13.5 - 18.5 13.5 - 18.5 2147 286.4 100.0 13.5 - 18.5 13.5 - 18.5 The 2003 year continues to show encouraging development for both of our managedsyndicates. For Syndicate 1007 the net incurred loss ratio is currently 9%,which is better than any other year at this stage since 1993 (2002: 17%).Syndicate 2147, which is shorter tail in nature, shows a net incurred loss ratioat this stage of 31% (2002: 41%). 2002 Run-off Years Syndicate Capacity Owned by Current Forecast Previous Forecast £m SVB (%) % % 1007 150.8 55.4 (5.0) - 5.0 (5.0) - 5.0 1241 168.9 99.7 (65.0) - (45.0) (65.0) - (45.0) Deterioration during the quarter amounted to some £12 million. This includesutilisation of some £5 million of the exceptional loss provision established inconnection with the run off of the Discontinued Units. At 31st December 2004 theunutilised provision was £67.1 million. The forecasts for the ultimate outcomeremain unchanged. Current TradingCurrent year trading continues as anticipated. There is modest downward pressureon rating levels, with an overall rate reduction of 3% across SVB's business inthe first four months of 2005. Nevertheless this remains a generally favourabletrading environment. Looking ahead to 2006, current rate softening is expected to continue. It islikely, therefore, that SVB will further de-empt its aggregate managed capacityfrom £437 million in 2005. For further information: Matthew Fosh, SVB Holdings PLC 020 7903 7300 Nick Miles, M Communications 020 7153 1535 This information is provided by RNS The company news service from the London Stock Exchange