London-based insurance company Brit Insurance Holdings PLC (BRE.L) Wednesday reported a 51% drop in its profit for the first half of 2008 as revenues declined on lower investment returns. Gross written premiums for the period, however, improved 3.8%, helped primarily by growth in small commercial business in the UK. The company also announced an interim dividend of 7.5p per share.
Net profit for the first six months of fiscal 2008 plunged to GBP 37.6 million or 12.15 pence per share from GBP 76.1 million or 23.39 pence per share in the year-ago period. Total comprehensive income for the period was GBP 33.9 million, down from GBP 81.1 million in the corresponding period a year earlier.
Profit before-tax for the six-month period dropped to GBP 49.9 million from GBP 106.8 million in the first half of 2007. Underwriting profit for the period was GBP 58.7 million, down from GBP 70.3 million in the same period last year.
Total revenues for the first half of 2008 declined to GBP 555.3 million from GBP 632.3 million in the year-ago period.
Gross written premium for the six-month period increased 3.8% to GBP 754.8 million from GBP 727.4 million in the same period last year. Net earned premiums for the period was GBP 544.5 million, down from GBP 570.6 million in the prior-year period. Half-year combined ratio improved to 89.4% form 87.7% last year.
Net Group reserves as at 30 June 2008 were GBP 1.7 billion.
The company also announced an interim dividend of 7.5 pence per share during the period, payable on 3 October 2008 to shareholders on the register on 5 September 2008.
Additionally, Brit Insurance repurchased 520 thousand shares of its common stock for GBP 1.1 million during the period, representing 0.16% of the total issued share capital.
Shares of Brit Insurance are currently trading at 185.00 pence in the London Stock Exchange, down 0.27%, on a volume of about 1.69 million.
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