Novae Group posted a substantially improved net profit in the first six months of 2014 despite warning on several headwinds including a challenging rating environment, low interest rates and a strong sterling.
The company made a pre-tax profit of £22.6 million compared with £11.8 million in the first half of 2013. Its gross written premiums were virtually unchanged at £362.6 million compared with £361.8 million a year earlier although it noted that this still represented growth of 6 percent at constant exchange rates.
Its combined ratio improved to 91 percent compared with 96 percent in the first half of 2013. Its net investment income was £7.4 million compared with £4.4 million and its interim dividend was up 10 percent to 6.6p per share.
Matthew Fosh, group chief executive of Novae, said: “The group produced an impressive performance in the first half of the year, delivering 6 percent organic growth and an improved claims ratio. Novae continues to deliver an improving performance despite a more challenging rating environment, low interest rates and a strong sterling. We continue to invest in the business, attracting talented people and developing new opportunities, leaving us well placed to build on the good progress we have made.”
Novae Group, Europe, Second Quarter 2014 Results, Matthew Fosh