Professional indemnity insurance provider reports first half loss

Specialist indemnity insurance provider Ecclesiastical, an insurer that offers cover to churches, charities, and related organisations, recently announced a loss before taxes of £9.9 million for the first half of this year, which compares unfavorably to 2009’s firs half profits of £25.7 million.

The public liability insurance firm’s underwriting loss for 2010’s first half was reported at £15.5 million, which again compared unfavorably with its £15.1 million profit from 2009.  The company attributed the figures to a claims ration that was at a 10 year high.

Despite the poor financial results, the charitable business insurance provider’s chief executive, Michael Tripp, remarked that Ecclesiastical would be examining its offerings closely to avoid any subsequent losses for the rest of the year.

Mr Tripp struck a further optimistic note, stating that while 2010 was presenting challenges for the company, he felt that Ecclesiastical’s strong discipline in regards to underwriting, its careful analysis and management of claims, and a healthy appetite for increasing the amount of new business, he had confidence that the company would not find its year-end goals out of reach.  Much like the rest of the UK insurance market, the remainder of the year will be spent on modifying their casualty rates on their UK motor accounts while claims by third parties continue to escalate in those regards, Mr Tripp added.

In his concluding remarks, Mr Tripp expressed the company’s pleasure in announcing that their charitable owner will receive an additional grant from Ecclesiastical of £10 million more than their contributions from 2009, despite the challenges the current economic climate have brought upon the insurer, and was quick to add that the firm was well on its way to donate its largest ever sustainable grant, also from their current year results.

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