Atlantic Insurance profit up 65% in 1H07

Atlantic Insurance Company Public Ltd (ATL) announced that total profits attributable to shareholders reached CYP2,245,122 or EUR3,846,363 compared to CYP1,358,068 or EUR2,326,652 in the corresponding period of 2006, recording an increase of 65%.

Net premium income was flat, increasing 2.6% YoY to EUR 7.71 mln from EUR 7.69 mln in 1H06, but income from financial services surged 96% YoY to EUR 2.64 mln from EUR 1.35 mln a year ago, helping lift total income to EUR 10.89 mln from EUR 8.96 mln before.

Emilios Pirishis, CEO of Atlantic told the Financial Mirror that following intense competition in the market, Atlantic kept its premium rates at the same level as last year, explaining the marginal increase in net premiums, but added that the number of clients increased at a satisfactory pace.

“Our prudent policy to diversify and set up a financial services company – Atlantic Securities is starting to pay off, with the results of the subsidiary having a significant impact on overall results for the first time since it was set up,” said Pirishis.

Claims were up 7.8% to EUR 3.87 mln from EUR 3.59 mln a year ago with the loss ratio, claims to net premiums steady at 50%. Commissions, or money paid to third parties or agents was flat at EUR 0.52 mln with overall total costs up 15% to EUR 7.95 mln.

Profit from General Insurance business was up 44% to EUR 2.94 mln in 1H07 from EUR 2.04 mln a year ago in the same period. Results were further helped by revaluation of investments by EUR 1.09 mln compared to EUR 0.42 a year ago.

EPS were at 9.84 euro cents from 5.95 euro cents with capital and own funds improving to EUR 27.5 mln in 1H07 from EUR 25.5 mln in 1H06.