Our Performance

£75.3m

Profit before tax and foreign exchange on non-monetary items(2008 loss £59.5m)

£42.0m

Profit before tax(2008 loss £26.2m)

£795.6m

Gross written premiums(2008 £689.9m)

£53.3m

Investment return(2008 loss £71 m)

9.7%

Post-tax annualised return on equity(2008 loss 7%)

2.7p

Final dividend making a total dividend of 4.0p(2008 5.5p)

5.8p

Undiluted earnings per share(2008 loss per share б.Ор)

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Our underwriting performed positively in 2009, with good results from our Property, Aviation, Energy and Specialist Lines Divisions. Our investment return was also particularly good following the dramatic change in the portfolio from 2008.

The outlook for the business remains encouraging despite the softening of rates across some classes of business.

Our broad-based underwriting portfolio will enable us to take full advantage, especially with good opportunities for UK Motor and Aviation.

With a new management team and business strategy in place, I am confident of our ability to lead Chaucer to further success in 2010.

Robert StuchberyChief Executive Officer

Underwriting performance

  • Underwriting profit of £45.8m before the impact of foreign exchange on non-monetary items (2008 £33m)
  • An average premium rate increase of 5.7% achieved across underwrite portfolio (2008 decrease 3.6%)
  • Combined ratiо of 93% (2008 94%)
  • Contribution of £5.9m from syndicate participation and management activities (2008 £4.4m)
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Business outlook

  • Underwriting will benefit from active management of diversified portfolio in 2010
  • Forecast rate increases across our underwriting portfolio for 2010
  • Targeting UK motor, aviation and selected specialist lines classes
  • Syndicate 1084 capacity increased to £707m (2009 £634m) to take advantage of opportunities
  • Group underwriting interests increased 7.5% to £6233m in 2010 (2009 £580m)