Catlin Group’s Revenues Rise By 12 Percent
The Bermuda-based Catlin Group Ltd., the third-biggest Lloyd’s of London insurer by market value, today [Nov. 14] said revenue rose 12 percent in the first nine months as it hired additional US underwriters and added reinsurance business at its Swiss unit.
Gross written premiums climbed to $3.68 billion in the nine months to September 30 from $3.28 billion in the same period a year earlier, the company said today in a statement.
“We expect improvement in rates and conditions for many of the classes of business we write,” CEO Stephen Catlin [pictured] said in the statement. “Despite the challenging environment, Catlin looks ahead with confidence.”
The group says average weighted premium rates for catastrophe-exposed business increased by 10.5% during the third quarter of 2011, following on from the rate increases the beginning of June and July.
Average weighted premium rates for non-catastrophe business were broadly flat during the third quarter.
Catlin estimates that catastrophe losses from events in 2011, including an early estimate of losses arising from the Thai floods, amount to $670 million, net of reinsurance and reinstatements.
This estimate includes recoveries in excess of $50 million from the group’s catastrophe aggregate reinsurance protection, in line with the recovery scenarios provided in the first-half financial results statement.
The group says that if there is deterioration in losses arising from any of the catastrophe events that have occurred so far in 2011, it anticipates that approximately 90% of the deterioration will be recovered from the catastrophe aggregate programme.
Likewise, the group anticipates that it will recover a substantial proportion of losses from any additional catastrophe events occurring in 2011, once the deductibles applicable to these events are satisfied.
Catlin, along with rivals Amlin Plc, Hiscox Ltd. and Beazley Plc, posted a loss in the first six months of the year after earthquakes in Japan and New Zealand contributed to the most costly first-half for insurers on record. Insurers are also being squeezed by record low interest rates and slowing growth in the euro-zone.
