Catlin up as catastrophes fall

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13 August 2012

Bermuda-based insurer Catlin Group experienced a strong first half, with net income at $US206 million ($194.86 million), compared with a loss of $US198 million ($187.32 million) for the six months to June 30 last year.

Gross written premium rose 12% to $US3.01 billion ($2.84 billion) from $US2.68 billion ($2.53 billion) and the net underwriting contribution was $US443 million ($419.2 million), compared with a loss of $US91 million ($86.01 million) for the corresponding period last year.

CEO Stephen Catlin describes the results as “excellent… including a record underwriting contribution and strong profits before tax”.

There have been increases in all divisions, with the London underwriting hub producing good growth for the first time in five years, Mr Catlin says.

“The rating environment continues to be favourable, as average weighted premium rates across the portfolio increased by 5% during the first half of 2012,” he added.

Rates are increasing for catastrophe-exposed businesses and there are positive movements in the US casualty business, Mr Catlin says.

“Catlin’s focus on underwriting discipline and flexible capital structure puts us in a solid position to take advantage of opportunities as they arise in the second half of the year and beyond.”

The position was strengthened by a lack of catastrophe-related losses in the first half, compared with the previous corresponding period’s record catastrophe losses of $US534 million ($504.38 million).

Overall losses fell 41% to $US882 million ($833 million) for the half. The combined ratio turned positive at 86%, compared with 116.5% last year.

Investment returns stood at 2%, down from 3% last year. Gross written premium in the Asia-Pacific region grew 6.9% to $US170 million ($160.67 million).