Specialist insurer Novae Group showed its resilience to market volatility with a record performance in the first half of 2016, buoyed by robust investment returns.
Novae announced that its pre-tax profits reached £37.9 million during the first six months of the year, up by 30.7% from the same period in 2015.
“It is pleasing to note that despite the challenging market conditions, this is a record performance for the Group in the first half of the year,” the insurer said in a statement.
The company said ongoing investment in underwriting has delivered further growth in the business. Net investment income leapfrogged from £3.8 million to £28.4 million, following the implementation of a new investment strategy in the second half of 2015.
“In what was an eventful first half of the year for the industry Novae has shown its growing resilience,” said Novae CEO Matthew Fosh.
“Our balance sheet remains strong. Our investment portfolio successfully withstood a period of heightened volatility and reserving remains prudent. Overall this market requires careful handling, but selective opportunities for profitable growth continue to present themselves.”
Gross written premiums (GWP) rose by 10.8% to £513.1 million in the first half, with all underwriting divisions achieving growth.
The property and casualty divisions posted GWP of £258.1 million and £107.7 million respectively. Direct property classes and the cyber unit had the most impressive growth.
The marine, aviation and political risk division had recorded GWP of £147.3 million, but the growth was offset by reductions in aviation reinsurance.
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