More on Brit Insurance Holdings
Brit Insurance Holdings: Storm losses
Brit Insurance Holdings, the UK general insurance group, said that losses from hurricane Wilma (net of reinsurance) are estimated at £37.5m. The Group’s estimate of losses from hurricanes Katrina, Rita and Wilma, net of reinsurance, is £182.5m. The losses are large by any measure and dwarf the H1 pre-tax profits of £112.4m.
The company says it will remain in profit for 2005, “provided no further exceptional claims or other unforeseen circumstances” prevail and expects to pay a final dividend subject to performance in the second half.
The company is hopeful that the catastrophic storm season will lead to firmer prices (and better profits next year) – there are signs that this is happening. The company is also working to reduce, rather late in the day, its exposure to ‘peak zone’ catastrophes in 2006.
The share trades at 84p, on a prospective PE (2006 earnings) of 8.9x in line with the sector with a yield of 7.7%.
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