Brit Insurance Holdings PLC has announced record final results for the year ended 31 December 2003.
The insurer has reported record pre tax profits of £77.6m, compared to £10m in 2002. Operating profits rose 561.4% to £75.4m from £11.4m in 2002, benefiting from improved underwriting conditions and investment management performance. Brit also reported an increase of 53.3% in gross written premiums for the twelve months to just over £1bn from £662.7m for the prior year, while gross premiums earned rose from £444.3m to £834.3m. The 2004 gross written premium target has been set at £1.3bn.
Net premiums written for 2003 showed an increase of 54% on 2002 to £850.8m from £552.2m, while net premiums earned rose 106% to £671.4m from 325.3m.
Brit improved underwriting performance was reflected in the company's combined ratio which showed a slight improvement to 88.5% from 88.6%.
Brit also reported significant progress in its UK operations. Brit Insurance Ltd saw a 181.9% increase in gross premiums written, hitting £384.5m for 2003. This growth was due primarily to the successful integration of the employers liability/public liability team, the portfolios acquired from Creechurch, Gerling and Markel, and the acquisition of PRI.
Commenting on the results, Neil Eckert, CEO, said: "We have made considerable progress in all key areas. We have produced record profits, set the wheels in motion for the early resumption of dividend payments and clearly defined our targets. We are establishing ourselves as a significant presence in our chosen markets, particularly in UK commercial insurance and look forward to the future with tremendous confidence."
Brit also reported a planned capital reorganisation which, subject to shareholder and stockholder approval, and that of the High Court, will allow the company to declare a dividend much sooner than previously suggested. Brit stated in October 2003 that it planned to pay a minimum dividend of 70% of annual post tax profit, subject to available distributable reserves. Once completed, the reorganisation, it is claimed, will leave the company in a position to begin these payments. Brit announced an early dividend payment of 2p, subject to approval.
It was also announced that two new non-executive directors had been appointed. Peter Hazell, currently chairman of Argent Group plc and a non-executive director of UK Coal plc, was appointed with effect from 1 April. Michael Smith, formerly a senior partner at Titmuss Sainer Dechert and now a consultant for Randall and Quilter Investment Holdings Ltd, was appointed with effect from 8 March 2004.
