Brit Insurance Holdings (LSE: BRE) released its following Interim Management Statement and trading update for the first three quarters of the calendar year. Brit Insurance reported a 19% increase in gross written premiums to approximately £1.3 billion, while renewal premiums also increased 4.8%.
Brit Insurance operates through three customer facing Strategic Business Units (SBUs) - Global Markets, Brit Reinsurance and Brit UK.
Constant currency premium growth during the period grew by 17.8% at Brit Reinsurance and 26.4% at Brit UK, reflecting improving pricing power for insurance and reinsurance operators.
The company also reported that no significant catastrophes occurred in the third quarter, and as such movements in prior year claims reserves are in line with expectations.
The group’s investment returns were also improved for the period - £119.8 million in the first three quarters – to a non-annualised return of 3.6%, after recording a loss across the same period in 2008.
According to Brit Insurance, the sharp recovery in the capital markets and a benign US windstorm season has reversed much of the capital destruction experienced in the insurance industry during 2008 and early 2009.
Brit Insurance Holdings CEO, Dane Douetil commented on the group’s outlook going forward: "As we look towards 2010 the rating environment for the Reinsurance and Global Markets divisions is finely poised and we remain alert to the opportunities and threats this will bring. The direction of the UK market is more clearly positive with further rate improvement undoubtedly required to address certain areas of inadequate pricing. With a diversified underwriting platform already established, the Group is well placed to manage its way successfully through an ever-changing insurance market."