Catlin Declares $86 Million In Profit
Bermuda-based Catlin Group Limited announced its financial results for the six months ended 30 June 2010. Stephen Catlin, Chief Executive of Catlin Group Limited, said: “Catlin’s underwriting operations produced strong underlying results, as the attritional loss ratio in the first half was the lowest in four years. However, our profits were reduced by record first-half catastrophe losses and adverse foreign exchange movements. Our results were also impacted by the Deepwater Horizon loss, but as a leading energy underwriter the Group is well-positioned to benefit from improved rates and increased demand.”
Financial highlights include:
- US$86 million in profit before tax (30 June 2009: US$240 million); includes US$49 million in foreign exchange losses (of which only US$8 million is a realised loss)
- US$227 million in net underwriting contribution1 (30 June 2009: US$246 million); US$362 million in net underwriting contribution if catastrophe losses relating to Chilean earthquake are excluded
- 11 per cent increase in gross premiums written to US$2.5 billion (30 June 2009: US$2.2 billion)
- 21 per cent increase in net premiums earned to US$1.6 billion (30 June 2009: US$1.3 billion), of which one-third is attributable to embedded growth from the Wellington acquisition
- Non-London hubs produced 43 per cent of gross premiums written (30 June 2009: 35 per cent); non-London hubs produced 63 per cent of net underwriting contribution (30 June 2009: 41 per cent)
- 51 per cent attritional loss ratio was lowest in four years (30 June 2009: 54 per cent)
- 97 per cent combined ratio (30 June 2009: 93 per cent), of which 9 per cent relates to Chilean earthquake losses
- 1.8 per cent total investment return produced during period by defensively positioned asset portfolio (30 June 2009: 2.9 per cent)
- 5 per cent increase in interim dividend to 8.6 pence (13.7 US cents) per share (30 June 2009: 8.2 pence; 13.8 US cents)
- 26 per cent increase in net tangible assets per share in sterling over past 12 months; 14 per cent increase in net tangible assets per share in US dollars
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