CHAUCER HOLDINGS UPBEAT DESPITE INCREASED 2000 LOSS

Lloyd’s corporate vehicle Chaucer Holdings has posted a 2000 pre-tax loss of £4.1m, compared with a year-earlier shortfall of £1.1m. Earnings per share showed a loss of 7.8p, slipping from 1999’s loss per share of 0.7p. Underwriting director Bob Stuchbery said that Chaucer was now “most encouraged” by evidence of hardening insurance rates in its London market syndicates and the continued increases being achieved by its motor syndicate. “The last year has been an extremely productive one for Chaucer”, said Mr Stuchbery, noting that the group had “now put in place the foundations for [an expected sustained] upturn in the insurance cycle”. Chaucer’s results suffered from falling equity markets during 2000, including a realised loss of £1.4m when it chose to move the balance of its equity investments into fixed-interest securities at the end of February this year. Its fixed-interest portfolio also suffered a £1.3m unrealised loss from a widening of spreads over comparable government stocks. Chairman Martin Gilbert said that these items obscured what would otherwise have shown up as “a satisfactory improvement to a position of surplus income over expenses”. Mr Gilbert remained confident about the group’s underwriting prospects for 2001. He said that the sector was characterised by an optimism that “has not been seen for the last five years”.