BRIT owns 50.4% of Managed Capacity

BRIT Insurance Holdings PLC ("BRIT") is pleased to announce that, following its acquisition of Wren plc, its spread portfolio has been actively realigned in this year's auction season.
November 03, 1999


BRIT Insurance Holdings PLC ("BRIT") is pleased to announce that, following its acquisition of Wren plc, its spread portfolio has been actively realigned in this year's auction season. Due to current market conditions, aggregate underwriting for the year 2000 has declined sightly from approximately £212 million to a projected £190 million. As the market improves, BRIT has the ability to incease significantly underwriting from its own resources.
BRIT has been successful in the auctions increasing its capacity on the Wren managed syndicates by £55 million to £129.7 million. BRIT now owns some 50.4% of the total managed capacity on the Wren syndicates, comprising nearly 50% of both Marine Syndicate 735 and Aerospace Syndicate 800, and 72% of Wren Motor, in addition BRIT has now acquired 95% of the Wren Life Syndicate. The most significant acquisitions of capacity have been on those syndicates which house its flagship accounts of whole account reinsurance, space and fleet motor, all of which are showing significant improvements in rating outlook.
Capacity has been acquired for an aggregate consideration of £2.2 million at an average price of 4.4p per £1, which is below the average price paid for capacity in the 1999 auctions for all Lloyd's syndicates. The majority of the Masthead portfolio has been sold, but BRIT has retained £60 million of third party capacity which provides balance to the Group's underwriting portfolio. This capacity is underwritten by market leaders in classes where BRIT is not represented through the Wren managed syndicates. The aggregate consideration received by BRIT on the partial disposal of its third party capacity in the auctions was £6 million. The realignment of BRIT's underwriting has generated a net trading profit before tax of £3.8 million.
Neil Eckert, Chief Executive, said:
"Material pricing improvements are taking place in our main business lines and we now have both the underwriters and capital to exploit these. The Board will actively weigh the opportunity cost of returning capital to shareholders through share buy-backs against the potential underwriting profits for which we ahve striven to position the Company through the recent difficult trading conditions."
For further information,
Peter Scales, BRIT Insurance Holdings PLC
0171 623 3050
David Haggie, Haggie Financial Limited
0171 417 8989
 
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