Omega Insurance cancels dividend as losses double
Omega Insurance Holdings has doubled its pre-tax losses for the full year ended December 31st, prompting it to cancel the dividend.
Omega Insurance Holdings has doubled its pre-tax losses for the full year ended December 31st, prompting it to cancel the dividend.
Loss before tax was $94.7m compared to a loss of $42.9m the previous year, on an income of $304.6m (2010: $356.1m) and net revenues of $257m (2010: $261.4m), hit by a leap in the number of claims made, particularly after the earthquakes in Japan and New Zealand. The effect of the catastrophe losses totals $85.6m (2010: $55.0m).
Gross premiums had a written reduction of 14.5%, in line with the firm's plan.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
It wasn't all bad news, however, as basic earnings per share rose from 17.6 cents to 36.5c, while cash levels jumped from $37.9m to $52.8m.
Richard Pexton, chief executive officer, said: this has been a difficult year, with an unprecedented frequency of large catastrophe losses, together with a frustrating corporate activity process. During 2011, we have continued the repositioning of our business which is now aligned with the board's current risk appetite.
"We are seeing encouraging signs in the market with re-pricing in our core classes, with 60% of our portfolio showing increases of more than 5%. We remain a well capitalised business. The transformation of our business mix and the positive pricing movements we are now seeing leave us in a good position to take advantage of market opportunities in 2012."
Omega shares lost 2.49% to 49.00p by 13:16.
NR
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published