Infrassure announces its results for the Financial Year 2011

Infrassure Ltd. / Infrassure announces its results for the Financial Year 2011 . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement. In the context of a challenging year, Infrassure Ltd. closed 2011 with a minor loss of CHF 3.1 million (USD 3.3).  The major factors contributing to the result included the earthquake and tsunami in Japan, flooding of the Mississippi River, and the lackluster performance of...

In the context of a challenging year, Infrassure Ltd. closed 2011 with a minor loss of CHF 3.1 million (USD 3.3).  The major factors contributing to the result included the earthquake and tsunami in Japan, flooding of the Mississippi River, and the lackluster performance of the financial markets - all common to the entire insurance industry.  Several large individual industrial claims (coal mine in Australia, oil sands facilities in Canada and a refinery in Oklahoma) also took their toll on the combined ratio of 90.2%.  Furthermore, Infrassure Ltd. suffered from the strong Swiss franc in 2011, the reporting currency, compared with the operational currencies of the US dollar and the Euro.  While the challenges were numerous and significant, Infrasssure's capital and solvency positions remain unaffected and very strong.

A combination of increased discipline in light of the prevailing unfavorable insurance market conditions, as well as currency fluctuations, led to a significant reduction in written premiums in 2011, CHF 187.3 million (USD 200.3)  compared with 234.8 million (USD 251.1) in 2010.  While the claims burden remained practically the same in absolute terms (CHF 133.7 million (USD 142.9) for 2011), in light of reduced premium volume the claims naturally represented a proportionally larger burden against income.

 "Whilst we are not satisfied with the financial result of 2011", stated William Bachmann, CEO, "given the broad based nature of the difficulties, Infrassure has proven its ability to meet our customers' needs in the most negative of environments.  The stabilization of the global economy, leading to an incremental growth in construction of heavy infrastructure, an increasing awareness in the general insurance market of the need for better terms and conditions, and our own internal improvement measures, will lead us to a more satisfactory result in 2012".

Key facts and figures
Figures in millions CHF		2011	2010
Gross premium written		187.3	234.8
Reinsurance premium written (net of commission)		(2.6)	(5.5)
Net premium written		163.1	195.1
Net claims incurred		(133.7)	(130.7)
Income (loss) before taxes		(3.1)	30.4
Shareholders' equity		185.2	200.3
Figures in %		2011	2010
Net combined ratio		90.2%	83.8%
Return on equity		(1.7%)	13.5%
Number of employees		105	93
Figures in %		2011	2010
Swiss Solvency Test (SST):
Risk-bearing capital as % of target capital		*	198%
Financial strength rating by AM Best		A- (Excellent)	stable outlook
*In accordance with Swiss Financial Market Supervisory Authority (FINMA) guidelines SST figures are reported at the end of April

 

Note to editors:

For further information regarding Infrassure or their results please contact:
Media communications +41 43 500 12 48

Infrassure Ltd is an independent, prime infrastructure insurance specialist providing reliable risk protection for power, energy and other infrastructure projects and installations.  Licensed in Switzerland and active worldwide, Infrassure covers every stage of the insurance and reinsurance process, from risk appraisal to claim settlement.

Infrassure's financial strength is validated by its A- (Excellent) financial strength and credit rating by A.M. Best.   Via its sister company Infrassure Liechtenstein, based in Vaduz (A- Excellent rating from A.M. Best), Infrassure is authorized to write insurance business in the EU and has Excess & Surplus Lines Licenses in US States and has authorization to operate as an occasional reinsurer in Brazil. 

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