2 March 2016 Insurance

Novae results increase despite dramatic fall in investment income

Novae Group, the specialist insurance group, has reported a slight increase in its pre-tax profit for 2015 on the back of solid growth across the business and despite falling investment returns.

The company made a pre-tax profit of £54.9 million in 2015 compared with £52.4 million in 2014.

The group’s gross written premium soared last year to £787 million, compared with £638.5 million in the previous year. Some 2.9 percent like for like growth came from existing units at constant rates of exchange and 14.3 percent growth came from investment in new underwriting teams, the company said.

Novae’s combined ratio also fared well at 90.8 percent in 2015, compared with 91 percent in 2014.

These positive results were slightly offset by a dramatic fall in net investment income to £6.8 million last year, compared with £14.3 million in the previous year.

Matthew Fosh, chief executive officer, Novae, said: “I am delighted with the performance of the Group this year and the high quality returns we have produced. The progress we have made strategically and operationally has manifested itself in another strong set of results.”

He added: “Market conditions remain undoubtedly difficult, however the business is now better placed than it has ever been to deal with the challenges ahead.”

John Hastings-Bass, chairman, Novae, commented: Novae has recorded a very pleasing result for 2015. Profits from underwriting were at a record level. This reflects the significant progress we have made in improving our underwriting capability and deploying our capital more effectively.”

He added: “Novae’s financial position has continued to strengthen and the Group has delivered a number of core strategic initiatives during the period.”

Hastings-Bass also said that the Group has taken positive action to reduce its exposure to deal with variable market conditions.

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