Highlights
Profit before tax of £161.4 million (H1 2012: £184.4 million)
First half return on equity of 9.3% (H1 2012: 11.9%), 18.6% annualised
Gross written premium of £1,838.9 million (H1 2012: £1,814.7 million)
Combined ratio of 85% (H1 2012: 84%), generating an underwriting profit of £158.2 million
(H1 2012: £153.5 million)
Large catastrophe losses higher than last year but limited at £32.2 million (H1 2012: £nil)
Average overall rate movement flat (H1 2012: increase 4.2%), with renewal retention rate of 87% (H1 2012: 86%)
Positive rate movements for key insurance classes offset downward pressure on catastrophe reinsurance rates
Investment return of 1.4% (H1 2012: 2.0%), generating an investment contribution of £67.4 million (H1 2012: £84.7 million)
Earnings per share of 28.2 pence (H1 2012: 34.1 pence)
Interim dividend increased 4.0% to 7.8 pence per share (H1 2012: 7.5 pence per share)
Net tangible assets per share increased 8.2% to 281.2 pence (31 December 2012: 259.8 pence)
Charles Philipps, Chief Executive, commented as follows:
"These are a solid set of results which demonstrate a good level of underlying underwriting profitability. There are positive trends in a number of our businesses which will counteract downward pressure on catastrophe reinsurance rates and this reinforces the benefit of our diversification strategy. We are optimistic about the out-turn for the full year."
