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Catlin confident despite falling rates

Catlin has reported a 2.9% drop in average weighted premium rates for the nine months to September 30, with rates for catastrophe-exposed business down 6.9%.

CEO Stephen Catlin says rating levels remain adequate for most classes.

“We still firmly believe our highly diversified portfolio, both by underwriting hub and by class of business, provides Catlin with significant advantages during a period of decreasing rates in wholesale markets,” he said.

Gross written premium (GWP) grew 11% to $US4.89 billion ($5.61 billion), or 5% excluding foreign exchange movements and the increase in value of multi-year contracts.

London hub business GWP increased 11% to $US2.23 billion ($2.56 billion), while the international division, including Australia, reported a 17% rise to $US1.03 billion ($1.18 billion). US GWP gained 10% to $US1.09 billion ($1.25 billion).

The group incurred losses on the downing of Malaysia Airlines flight MH17 over Ukraine and the attack on Tripoli Airport in Libya, but Mr Catlin says its aggregate catastrophe and single-risk losses are below expectations for the nine months.

Catlin Asia Pacific CEO Mark Newman said the company’s focus on geographic and product diversification was delivering results.

“As local markets continue to grow, combined with our commitment to hiring and empowering local underwriting expertise, you can expect further growth from Catlin’s Asia Pacific business,” he said.

“Our business in Australia continues to perform well, and I am delighted with our market profile, brand and results in both our offices in Melbourne and Sydney. As an intermediated business, we remain very well positioned in the Australian market.”