£5.5m loss for Advent Capital
by David Masters
Specialist Lloyd’s (re)insurer Advent Capital has reported its results for the first quarter, with pre-tax losses of £5.5 million.
This is compared to the £0.5 million profit that the company made during the first quarter of 2007.
The poor results are being blamed on the second worst ever quarter in the history of the insurance industry for single risk losses. Estimated aggregate losses for the industry are in excess of $3.75 billion (£1.89 billion).
Advent made the loss despite gross premiums increasing 21% on year to £62 million.
Any increase in profit from the extra premiums was wiped out by underwriting losses of £6.4 million, compared to £0.9 million a year earlier, and a combined ratio of 111.5%, compared to 104.1% for the same period in 2007.
Advent’s chairman, Brian Caudle, remains positive. He said that the company is well positioned in its respective markets, and will continue being alert to the changing business environment.
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