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Novae Group issues profit warning

Novae Group Plc said the underwriting contribution for the year ended Dec. 31 is likely to be lower than previously anticipated because of larger than expected individual risk losses.

Individual risk and catastrophe losses remained dominant in the second half, according to the Dec. 8 release.

The group also made changes to the accounting treatment of deferred acquisitions costs, which will likely result in a write-down of the deferred acquisition cost asset in the opening balance sheet by approximately £17 million and an increase in the deferred acquisition cost charge for 2016 of about £5 million.

The group added that the value of its fixed-income portfolio was affected by the "significant bond market sell­-off" after the U.S. presidential elections in November, though investment performance for the year to date "remains strong."

Novae Group will post preliminary results for full year 2016 in March 2017.