Brit heading for Canada

Left to its own devices - which given the recommendation is unlikely to continue - Brit is performing very well. Underwriting, investment and operational performance together delivered a near 21 per cent return on net tangible assets last year. In addition, a benign claims environment led to a combined ratio (of claims to premium income) of 89.5 per cent. The total investment return rose 38 per cent to £75.7m - representing an impressive return of 2.9 per cent - as falling government bond yields and tightening credit spreads increased unrealised gains within the bond-heavy investment portfolio.

Overall, risk-adjusted premium rates fell by 2.9 per cent, squeezed by the lower-claims environment and increased competition from new sources of underwriting capital. The decline was especially influenced by the reinsurance business, where rates fell 7 per cent. Sensibly, Brit declined to chase unprofitable business and reduced its reinsurance volumes.