Chaucer Holdings PLC, the specialist Lloyd's insurer, announced it has had record profits for the year ended 31 December 2004.
Profit before tax increased by 6.7% to £38.2m, from £35.8m in 2003, despite exceptional catastrophe losses.
Ewen Gilmour, chief executive, said: "I am pleased to report another excellent year for Chaucer, with record profits and shareholder returns, despite exceptional hurricane losses during the second half of the year. Shareholders are rewarded with a return on capital of 27.0% and, in accordance with the group's recently announced progressive dividend policy, a 37.5% increase in the annual dividend.
“The group's results reflect Chaucer's continued commitment to underwriting for profit rather than for premium and I am confident that this disciplined approach will sustain progress in 2005, which has started encouragingly with renewal rates ahead of budget."
The annual dividend increased by 37.5% to 2.75p (2003: 2.00p) and undiluted earnings per share increased to 12.8p from 11.1p a year earlier.
Return on equity of was 27.0%, compared to 26.5% in 2003 and gross written premium income rose by 21.6% to £391.1m (£321.6m in 2003).
Net earned premium income was up 32.6% to £285.1m from £215.0m a year earlier.
The combined ratio was 88.6% (in 2003 it was 83.0%) despite exceptional catastrophe losses.
The company said 2005 started encouragingly with renewal rates ahead of budget and there was a continued focus on building a leading specialist insurance business.
