Ecclesiastical Insurance, the parent of Ansvar Insurance, has described the church-based insurer’s first-half results as “steady” despite underwriting losses of £14.4 million ($21.8 million).

This is more than double the £6 million ($9.1 million) loss reported for the corresponding period last year.

“These are steady results in turbulent times,” CEO Michael Tripp said.

He says the insurer’s pre-tax profit of £8 million ($12.2 million) puts Ecclesiastical “in a strong position for the rest of the year”.

However, this figure is significantly down on last year’s first-half profit of £16.8 million ($25.5 million). This year its general insurance operations produced a combined operating ratio of 109.9% for the first half, compared to 104% in the first half of last year.

“Our general business underwriting loss is a result of unprecedented UK weather conditions in the second quarter, the continuing challenges in Australia and our group suffering the same difficult performance in household business that is currently affecting everyone in the market,” Mr Tripp said.

In May Ecclesiastical agreed to provide a $NZ24 million ($18.5 million) cash injection to fund costs associated with additional reinsurance coverage and other expenses related to Christchurch earthquake claims incurred by New Zealand subsidiary ACS.

It also extended the reinsurance cover of up to $NZ570 million ($439.4 million) and provided an additional $NZ4.5 million ($3.5 million) share capital to fund payment of “adverse development reinsurance cover” for the February 2011 earthquake.

Gross written premium for general business in the first half remained stable at £240.7 million ($365.8 million), slightly up on the £235.2 million ($357.5 million) figure for the corresponding period last year.

Group turnover came in at £259.3 million ($394.1 million) for the first six months, up from £251.8 million ($382.7 million) for the first half of last year.

Mr Tripp says there is some way to go to lift the results for the full year.

“We’ve already taken action through rate increases to improve profitability in the second half of the year, but understand we need to be even faster in implementing the increases and must do even more to see better performance at the end of the year and into 2013.”