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Britannic Group sees profits fall fifteen per cent

Date: Tue, 02 Sep 03 Analysis

LONDON, UK - Britannic Group Plc, a British insurer that failed to sell itself last year, has announced first-half profit falling 15 per cent after having sold its mortgage business.

The firm's operating profit dipped to £44.3m from £52.1m a year previously.

Meanwhile, analysts had expected a profit of £33m, according to the median forecast of five analysts surveyed by Bloomberg News.

'We have made good progress against our plan for the resumption of annual bonus declarations and the payment of dividends,' said the statement.

Previously, Britannic had stated that it did not intend to pay an interim dividend after having cut 2002 bonus payments to policyholders when profit plunged 41 per cent and sales of life insurance, pensions and mutual funds declined.

The company has recently been trying to cut costs, stopping writing new business in its Britannic Assurance unit, and in June selling its Britannic Money mortgage business to Paragon for £19m.

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