A more benign claims year for Lloyd's insurer Novae (NVA) allowed the group's combined ratio (of claims to premiums) to improve from 2011's loss-making 101.5 per cent to a solidly profitable 90.5 per cent, despite a $25m-$30m (£17m-£20m) hit from Hurricane Sandy.
A reasonably firm premium rate backdrop has helped, too. Overall the group's premium rates rose 1 per cent in the year with catastrophe-affected lines still seeing rates rise solidly - the group's property reinsurance rates rose 6 per cent, for instance. That offset flat rates in some lines, such as marine & energy or agriculture reinsurance, and softening rates elsewhere - rates on the marine & aviation account, for example, fell 4 per cent. The group's investment return, meanwhile, improved to 2.2 per cent from 1.8 per cent last year - that portfolio remains almost entirely focused on safe looking bonds and cash. Moreover, Novae's return on equity has now improved to an impressive 17. 6 per cent, up from just 8 per cent back in 2010.
Broker Canaccord expects full-year pre-tax profit of £45.7m, for 2013 giving EPS of 53.9p (from 43p in 2012) and net tangible assets (NTA) of 493.5p.
NOVAE (NVA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 475p | MARKET VALUE: | £306m | |
| TOUCH: | 475-479p | 12-MONTH HIGH: | 475p | LOW: 340p |
| DIVIDEND YIELD: | 3.8%† | PE RATIO: | 11 | |
| NET ASSET VALUE: | 468p | COMBINED RATIO: | 90.5% | |
| Year to 31 Dec | Net premiums (£m) | Pre-tax profit (£m) | Investment income (£m) | Dividend per share (p)† |
|---|---|---|---|---|
| 2008 | 258 | 40.2 | 50.0 | 11.3* |
| 2009 | 304 | 4.20 | 31.0 | 12.4 |
| 2010 | 431 | 35.1 | 25.4 | 15.7 |
| 2011 | 532 | -6.30 | 21.0 | 18.0 |
| 2012 | 516 | 39.9 | 25.8 | 18.0 |
| % change | -3 | -733 | +23 | +20 |
Ex-div: 17 Apr Payment: 9 May Capacity owned: 100 per cent †Adjusted for December 2010's eight-for-nine share consolidation *Excludes 4.5p special dividend | ||||
