Novae Group plc (“Novae” or “the Group”), the specialist Lloyd’s insurance group, today releases its Trading Update for the period ended 31 March 2017.
- GWP of £354.9 million (Q1 2016: £282.8 million); 13.8% growth at constant rates of exchange
- Rates on renewal business down 2% across the whole account
- Underwriting transformation completed with our exit from four Casualty classes, where future profitability is unsustainable
- Claims performance across core lines was broadly in line with expectations, whilst those classes exited or in run-off are expected negatively to impact performance, making it unlikely that the Group will achieve a combined ratio below 100% for the financial year
- Q1 Investment return: 0.7% (Q1 2016: 1.2%), ahead of target return
Commenting today, Group Chief Executive Matthew Fosh said:
“We have completed the underwriting transformation of Novae into a focussed Lloyd’s business, which has included the withdrawal from certain Casualty classes where we deem future profitability to be unsustainable. The soft market, several years in the making, is now entrenched, and combined ratios above 100% will be commonplace. Establishing a point of differentiation in today’s market is critical – the Group’s strategy over the past three years has been to pursue that goal.
For further information:
Matthew Fosh/Reeken Patel – Novae Group plc/020 7050 9000
David Haggie/Rebecca Young – Haggie Partners/020 7562 4444