Reviving stocks power Brit to premiums profits

The rising stock market has been good news for Lloyd's of London insurer Brit, which is now making a profit on the premiums it takes in from customers.

In the 42 weeks to 22 October, Brit made an investment return of £120 million on those premiums, a rate of 3.6%. That is against a loss of £11.8 million for the comparable period last year.

But the better returns aren't likely to lead to lower rates for customers any time soon.

Prices in the British market are set to keep rising, said the firm, best known as the sponsor of the Brit Oval, the home of Surrey County Cricket Club.

Chief executive Dane Douetil said: "The direction of the UK market is more clearly positive with further rate improvement undoubtedly required to address certain areas of inadequate pricing."

Those good investment returns may not last long, due to lower yields from government bonds, Douetil said.

In March the company revealed plans to relocate to the Netherlands for tax purposes.