Ward confident on ATE despite Jackson

09/09/2010

The after-the-event insurance market is “here to stay”, despite proposals laid out by Lord Justice Jackson, according to Abbey Protection.

The claim came as the legal expenses insurer recorded a profit before tax gain of 11% to £4.7m for the first half of the year (H1 2009: £4.3m), with shareholder funds up to £23.8m. Revenue increased to £17.3m (H1 2009: £16.4m).

Chris Ward, Abbey Protection managing director, told Post the firm’s ATE division is primed to adapt as necessary: “Of the obvious challenges approaching, we believe that ATE insurance is here to stay, but will have to evolve, and we will be monitoring the situation closely.”

Lord Justice Jackson’s review of civil litigation costs outlined a number of recommendations, including making ATE premiums and success fees irrecoverable â and a wider promotion of before-the-event insurance.

Abbey Protection’s ATE division currently contributes 10% towards the firm’s profits, he added.

In the first half of 2010, the firm’s claims ratio improved to 63% (H1 2009: 68%), with a rise in employment tribunal claims offset by a fall in taxation-related claims.

Mr Ward added the group is already beginning to see increased interest in its tax planning and commercial ATE insurance offerings.

Abbey, which previously said that it was considering acquiring a law firm after October 2011, is estimated to have a £10m acquisition fund.

However, Mr Ward insisted that Abbey Protection is “under no pressure” to spend the money, and that it would “not be prepared to pay over the odds” on the acquisition trail.

Original Article: Post