OPERATING PROFIT RISES AT BRIT INSURANCE

Netherlands-domiciled Brit Insurance has reported an operating profit of £85m ($129m) for the first half, up from £60m in the same period last year. Post-tax profit rose to £70m from £38m, with the combined ratio improving to 86.0% from 92.8%. Gross written premiums rose to £671m from £657m. Primary insurance made up £471.2m, up from £441.8m, while reinsurance premiums fell to £200.0m, from £215.1m. Brit Insurance has reclassified its H1 2012 results, with Brit's non-core UK regional business classed as discontinued operations, after it was sold last year. Discontinued operations booked a loss of £1.7m, compared with a loss of £9.2m in H1 2012. Brit said that premium rate increases at Brit Global Specialty were 0.7%, compared with a 4.2% increase reported for the same period last year. Strong rate increases were reported in marine (5.8%), property facilities (2.3%) and professional lines (1.8%). Rate reductions were seen in treaty North America (1.7%) and energy (1.6%). Group retention rose to 82.0% from 76.0%. Brit released £15.6m of prior year claims reserves, compared with a strengthening last year of 2.3%. The investment return for the half declined to £12.5m from £43.9m. The insurer said that the underwriting market remained "highly competitive with excess capital putting pressure on rates in a number of classes". Brit noted that "the investment environment also remains challenging with low yields and volatile returns". Group CEO Mark Cloutier said: "Looking ahead, I am confident the strong platform we have now built as a global speciality underwriter and the momentum still to be captured by existing initiatives in 2013 and 2014, will see Brit continue to improve performance while at the same time exhibit the flexibility to take advantage of new opportunities, as we have successfully done throughout the first half of the year".