Company Valuation Under IFRS : Interpreting and Forecasting ...

Chapter Six – The awkward squad
4. Sundance - Marine & Energy business
Year 1997 1998 1999 2000 2001 2002 2003
Gross written premiums 1,365 1,214 1,180 1,043 1,080 1,117 1,157
Reinsured premiums (580) (403) (490) (279) (289) (299) (309)
Net written premiums 785 811 690 764 791 819 847
Net earned premiums 795 869 719 755 775 802 830
Net claims (438) (494) (803) (702) (651) (674) (689)
Net operating expenses (205) (207) (220) (268) (186) (184) (183)
Underwriting result 152 168 (304) (215) (62) (56) (42)
Growth in written premiums -11.1% -2.8% -11.6% 3.5% 3.5% 3.5%
Retention ratio 57.5% 66.8% 58.5% 73.3% 73.3% 73.3% 73.3%
Earned/net written premiums 101.3% 107.2% 104.2% 98.8% 98.0% 98.0% 98.0%
Loss ratio 55.1% 56.8% 111.7% 93.0% 84.0% 84.0% 83.0%
Expense ratio 25.8% 23.8% 30.6% 35.5% 24.0% 23.0% 22.0%
Combined ratio 80.9% 80.7% 142.3% 128.5% 108.0% 107.0% 105.0%
Reserves 1,718 2,805 2,059 1,800 1,669 1,728 1,767
Reserves/Net earned premiums 216.1% 322.8% 286.4% 238.5% 215.4% 215.4% 212.8%
Year 2004 2005 2006 2007 2008 2009 2010
Gross written premiums 1,197 1,239 1,282 1,327 1,374 1,422 1,471
Reinsured premiums (320) (331) (343) (355) (367) (380) (394)
Net written premiums 877 907 939 972 1,006 1,041 1,078
Net earned premiums 859 889 920 953 986 1,021 1,056
Net claims (713) (729) (755) (800) (828) (837) (887)
Net operating expenses (198) (213) (212) (210) (227) (245) (246)
Underwriting result (52) (53) (46) (57) (69) (61) (77)
Growth in written premiums 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%
Retention ratio 73.3% 73.3% 73.3% 73.3% 73.3% 73.3% 73.3%
Earned/net written premiums 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0%
Loss ratio 83.0% 82.0% 82.0% 84.0% 84.0% 82.0% 84.0%
Expense ratio 23.0% 24.0% 23.0% 22.0% 23.0% 24.0% 23.3%
Combined ratio 106.0% 106.0% 105.0% 106.0% 107.0% 106.0% 107.3%
Reserves 1,829 1,870 1,935 2,052 2,124 2,146 2,275
Reserves/Net earned premiums 212.8% 210.3% 210.3% 215.4% 215.4% 210.3% 215.4%
315