Hardy's profits drop to £20.1m

Lloyd's insurer Hardy Underwriting Bermuda's profit before tax has fallen to £20.1m in 2009, compared to £23.1m the previous year.

Profit before tax and foreign exchange movements increased to £26.7m. (2008: £4.4m) while the combined ratio before foreign exchange movements is 78.1% (2008: 91.2%).

Commenting on the group’s results, David Mann, chairman of Hardy Underwriting Bermuda, said: “I am pleased to report that the Hardy group has maintained its record of profitability, returning a profit of £20.1m, after taking into account a foreign exchange loss which partly reverses last year’s gain. The profit before tax and foreign exchange was £26.7m (2008: £4.4m). Just as importantly, we have made good progress in implementing some of the key elements of the strategic growth plan on which continuing profitability and success are based.

“The effect of the global recession and the turmoil in financial services indicate challenging times ahead. Challenging conditions, however, create opportunities and we believe that Hardy has the ideal base from which to take full advantage.”

Barbara Merry, Hardy’s chief executive, added: “Hardy has performed consistently well during a tough year for insurers and reinsurers. We achieved more than our targeted growth in 2009 . This phase of our development has been very much associated with putting new skills and building blocks in place. We now seek to exploit these advantages.

“The Hardy team that we have assembled certainly gives us grounds for optimism about the longer term future of our business.”