...has called a special meeting of shareholders for September 24 to consider the group’s recent agreement to acquire all outstanding common shares and warrants of French-listed reinsurer Paris Re.

Australian financial services group Suncorp Metway reported net income of AUD348m ($292m) for the 12 months to June 30, down from AUD583m the previous financial year. The figure was within the AUD340m to AUD360m range of guidance issued by the insurer at the start of this month. In insurance the company suffered higher than normal claims as a result of bushfires in Victoria and two sets of floods in Queensland. The insurance trading result of AUD462m was 7.7% of net earned premium and down from AUD607m in 2008/09. General insurance’s contribution to profit was AUD573m before tax, up from AUD307m in the previous financial year. The major natural hazard events cost Suncorp AUD345 net of reinsurance, AUD105m ahead of Suncorp’s normal long-run expectations. A reinstatement premium cost the insurer a further AUD30m. Gross written premiums increased by 6% year on year to AUD6.55bn, with home insurance rising 9.2% and option motor insurance income up 5.3%. Compulsory third party was up 9.6%, while commercial was up 5.2%. The insurer said that premium increases had not resulted in attrition, although some customers had responded to a slowing economy by raising their excess. Suncorp’s new CEO Patrick Snowball begins on September 1. Acting CEO Chris Skilton will remain at Suncorp for three months to help Mr Snowball with the transition. Clayton Herbert will continue as acting chief financial officer until a permanent appointment is made.

UK-based motor insurer Admiral has posted a pre-tax gain of £105.3m ($173.8m) for the first half, up from £100.3m in the same period last year. The company said that it had been helped by a 5.5% average increase in premium levels. The result was £3m ahead of an analyst consensus. The combined ratio for the half was 89.0%, up from 85.8% in H1 2008. Admiral retains 27.5% of the risk on its UK premiums, with 50% going to Munich Re subsidiary Great Lakes Reinsurance (UK) and 22.5% going to Swiss Re, Hannover Re and Munich Re’s Switzerland-based operation New Re. Abroad at Balumba, AdmiralDirekt and ConTe, Admiral retains 35% of profits and Munich Re takes on the other 65%. Admiral’s loss in underwriting profit was more than compensated for by an increase in commission income to £22.7m from £14.3m. Admiral noted that “this is a reflection of the much more remunerative profit commission terms on the co-insurance and reinsurance contracts in effect for the most recent underwriting years”. Group turnover rose 17% to £540.1m, with the number of customers increasing 18% to 1.92m from June 30 2008. There are now more that 100,000 customers in Spain, Germany and Italy. Spanish price comparison site Rastreator was launched in March. Admiral said that it was starting work on two new comparison sites in Italy and France. Admiral is also working on a direct car insurance operation in the US, to be based in Richmond, Virginia, and to be called Elephant. This will be launched either in late 2009 or early next year. The still-competitive online comparison market in the UK affected admiral’s Confused.com, where profit fell to £11.0m from £15.6m, on revenue up 10% to £40.2m. CEO Henry Engelhardt said “Wow! Considering the general economic climate and pathetic investment returns this was an outstanding result”. The interim dividend of 27.7p per share, up from 26p in H1 2008, represents 97% of after-tax earnings. Mr Engelhardt said that this was “testament to the strength of Admiral’s capital-efficient cash-generative business model”. Greig Paterson at investment bank Keefe, Bruyette & Woods observed that, although Admiral stated that its 8% year on year premium rate increases were in line with the market, “industry surveys, however, show that rate increases were rather 10% to 11%, and thus some of Admiral’s market share gains are likely to be explained by its lower rate increases”.

Bermuda-domiciled insurer Hiscox has posted an improved H1 profit on increased turnover, despite a significant negative impact as a result of foreign exchange movements. Pre-tax profit increased 29.5% to £141.1m, from £109.2m in the same period last year, on gross written premiums of £906m, up 41.7% from £639.4m. Net premiums written rose to £715.2m from £513.9m. Movements in foreign exchange, particularly the strengthening of the pound against the dollar since March, had a £42.8m negative impact, compared with a gain of £9.6m in H1 2008. Investment returns for the half improved to an annualized 7%, from 1.6% in H1 2008, improving the return on financial assets to £85.4m from £16.5m. Chairman Robert Hiscox said that, apart from some modest rights issues, “exceptionally little capital has entered the industry so we are not assaulted by the usual fresh capacity full of optimism but empty of experience”. In the US, Hiscox said that “work continues apace to obtain licences to underwrite admitted business through our own insurance company, Hiscox Insurance Co Inc”. Meanwhile, Hiscox raised its estimates for syndicate 33’s 2007 year of account, to a range of between 17.5% and 25.0%, from a previous 10.0% to 17.5%, on capacity of £874m, of which Hiscox has a 73% share. Its estimate for the 2008 YoA remained unchanged. The capacity of syndicate 33 is being increased to £1bn next year, from £750m in 2009. The interim dividend was increased to 4.5p per share from 4.25p.