December 8, 2016 / 7:49 AM / 10 months ago

Novae sees FY underwriting contributions lower than its expectations

Dec 8 (Reuters) - Lloyd’s of London insurer Novae Group Plc said larger individual risk and catastrophe losses in the year would lead to full-year underwriting contribution being lower than it expected.

Novae, which covers property, casualty, marine, aviation and political risk, said its full-year combined ratio was expected to be between 98 percent and 100 percent. A ratio below 100 percent means an insurer earns more in premiums than it pays out in claims.

The insurer said, however, that a “significant” bond market sell-off after the U.S presidential elections had impacted the value of its fixed-income portfolio.

Novae also said a change in its accounting policies for deferred acquisition costs would result in a non-cash full-year writedown of about 17 million pounds ($21.49 million) and an increased charge of about 5 million pounds. ($1 = 0.7912 pounds) (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Sunil Nair)

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