Companies: HDU   

Lloyd’s insurer Hardy Underwriting has increased interim pre-tax profits 49 per cent to £9.1 million.

Fully listed Hardy lifted gross written premiums 50 per cent to £88.8 million in the six months to June, which saw its combined ratio of costs and payouts to revenues fall from 84.4 per cent to 79.5 per cent. Earnings rose nearly 60 per cent to 18.8p a share and the company is paying its first-ever interim dividend, of 3.3p a share.

Hardy, steered by formidable chief executive Barbara Merry, backs and manages two Lloyd’s syndicates: 382, which has been profitable for more than 30 years and underwrites all market sectors except motor and liability; and its new 38Twenty, which started underwriting in January and will primarily specialise in property insurance and reinsurance. Chairman David Mann points out that 382 is set to score a ‘double digit return’ on capacity for the 2005 underwriting year, when the overall Lloyd’s market is expected to show a loss because of US hurricanes.

He says 2006 proved ‘benign’ in the absence of similar catastrophes, though the recent UK floods will cause a ‘modest loss’. Highlighted by Growth Company Investor at 242p a year ago, the shares are now 327p, off 0.25p this morning, and value the company at £116 million.

They should outperform several sector peers.

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Hardy Underwriting Bermuda	LSE	£98.34m	275.00p	7.50p
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Other company articles:
Hardy Underwriting Bermuda			21/11/2008
Hardy hails ‘improving outlook’			17/11/2008
Interim easing at Hardy			02/09/2008
New fields for Hardy			18/03/2008
First-half growth for Hardy			12/09/2007