Hardy Underwriting Sinks To 2011 Loss
Hardy Underwriting Bermuda is dropping its final dividend after posting pre-tax losses of £42.1 million for the year to the end of December, the firm announced today [Mar. 1].
The board concluded a final payout would not be appropriate in the light of the impact of the catastrophe losses on the group’s financial resources and of the ongoing strategic review.
The loss compares with a pre-tax profit of £10.0 million in 2010.
Gross premiums written totalled £268.4 million — compared to £279.4 million in 2010 — and combined ratio of 120% compared with 94.7% in 2010.
Chairman David Mann said: “2010 and 2011 have been challenging years for Hardy and we have learnt a great deal from the experience.
“As a consequence, we believe that the underwriting portfolio is in fundamentally better shape than it has ever been.
Hardy, which launched a review of its business in December after receiving offers from suitors including rival insurer Beazley, said today it would let shareholders know what it had decided to do “as soon as possible”.
“The strategic review is proceeding and we remain focused on achieving the best possible outcome for all stakeholders,” said Mr. Mann.
Hardy Underwriting Bermuda is listed on the London Stock Exchange and is the ultimate holding company for the Hardy group of companies.
Hardy’s business has been built around its management of and participation on Lloyd’s syndicate 382, which underwrites a range of insurance and reinsurance classes on a world wide basis.
