Under-performing units result in heavy loss for SVB
Insurance group SVB Holdings today has announced a before-tax £117.5m (€173m) loss, including operating exceptional items, in the first six months of 2004. This compares with an £11.1m (€16.3m) profit last year.
SVB has discontinued a number of under-performing units, including liability reinsurance, healthcare and third party liability. The company's remaining units performed well, the company said today.
Group chief executive Matthew Fosh said: “We were disappointed by the performance of SVB’s discontinued units in the first half and the scale of the action needed to address this.
"We have benefited from continuing rate rises across our business as a whole during the first six months of 2004, and in particular from within our key specialty segment. Our return on equity and combined ratio are amongst the strongest in our sector, and our on-going businesses are performing very strongly.
"We are bearing down ever harder on the problems of the past and are building on the strength of the continuing businesses.”
