Thursday, August 18, 2005
More insurer enthusiasm boosts shares
Two familiar insurers reported favourable conditions today. Long-term portofolio holding Chaucer announced syndicate forecasts today accompanied with some cheer on trading:
Chief Executive Ewen Gilmour provided further reassurance:
The continued good trading conditions, combined with further positive development of business written in 2003 and 2004, should, assuming normal loss patterns, produce another strong underwriting result for Chaucer in 2005.
This cheered the market, with the shares at one time today over 2% higher at 59.5p to sell.
Elsewhere in the sector, Amlin (remember them?) trumped this with a positive trading update, telling the world that profits would be well in advanced of market expectations (that's code for broker forecasts).
the outcome for the 2005 half year is likely to be significantly better than market expectations due to a combination of continued strong trading, low levels of claims incurred and a good investment performance in the year to date
This is just the sort of announcement shareholders love to hear and normally results in a sharp rise before the market even opens. Note the announcement on low level of claims endurance. The world has escaped serious incident since the Boxing Day tsunami. The American hurricane season has thus far failed to deliver the promise of it's name and premiums remain strong. I'm dissappointed we haven't had one of these profit upgrade announcements from Chaucer or SVB but keenly look forward to their interim results, weather permitting. Still plenty of money being made in this notoriously cyclical sector.
The Artful Dodger
- The 2005 year of account continues positively with total gross
written premiums ahead of the same stage for 2004 and with pricing remaining
generally strong - Overall, forecasts for both the 2003 and 2004 years of account have improved
- Motor Syndicate 587's 2003 forecast has improved particularly strongly
Chief Executive Ewen Gilmour provided further reassurance:
The continued good trading conditions, combined with further positive development of business written in 2003 and 2004, should, assuming normal loss patterns, produce another strong underwriting result for Chaucer in 2005.
This cheered the market, with the shares at one time today over 2% higher at 59.5p to sell.
Elsewhere in the sector, Amlin (remember them?) trumped this with a positive trading update, telling the world that profits would be well in advanced of market expectations (that's code for broker forecasts).
the outcome for the 2005 half year is likely to be significantly better than market expectations due to a combination of continued strong trading, low levels of claims incurred and a good investment performance in the year to date
This is just the sort of announcement shareholders love to hear and normally results in a sharp rise before the market even opens. Note the announcement on low level of claims endurance. The world has escaped serious incident since the Boxing Day tsunami. The American hurricane season has thus far failed to deliver the promise of it's name and premiums remain strong. I'm dissappointed we haven't had one of these profit upgrade announcements from Chaucer or SVB but keenly look forward to their interim results, weather permitting. Still plenty of money being made in this notoriously cyclical sector.
The Artful Dodger
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