Chaucer returns to profit

Profit before tax grew to £42m (2008: loss £26.2m) while gross written premiums are up 15.3% to £795.6m (2008: £689.9m), up 5.4% on a constant currency basis

Underwriting profit increased to£45.8m before the impact of foreign exchange on non-monetary items (2008: £33m).

Chaucer said that an average premium rate increase of 5.7% was achieved across its underwriting portfolio (2008: decrease 3.6%) and its combined ratio is 93% (2008: 94%).

Chaucer said its underwriting will benefit from active management of diversified portfolio in 2010 and forecast rate increases across its underwriting portfolio.

Bob Stuchbery, chief executive officer, said: “Our underwriting performed positively in 2009, with good results from our property, aviation, energy and specialist lines divisions.

“Our investment return was also particularly good following the dramatic change in the portfolio from 2008.

“The outlook for the business remains encouraging despite the softening of rates across some classes of business. Our broad-based underwriting portfolio will enable us to take full advantage, especially with good opportunities for UK motor and aviation.

“With a new management team and business strategy in place, I am confident of our ability to lead Chaucer to further success in 2010.”

Chaucer Holdings also announced the appointment of Mauricio Carrillo as finance director of Chaucer Syndicates, Chaucer’s Lloyd’s managing agency and main operational subsidiary, with effect from 1 April 2010.

Mr Carrillo succeeds Ken Curtis following his promotion to chief finance officer of Chaucer Holdings in December 2009. A chartered accountant, Mr Carrillo joined Chaucer in April 2004 following six years in the insurance group of Deloitte & Touche. He has held a number of roles within Chaucer during this time, most recently as head of finance.