Insurer claims 30% increase in business with 4% price rise
Amlin has announced it has written more than 30% more business at the 1 January renewals that last year with premiums up by 4%.
The company said it had written £389m, a 30.6% increase on the prior year. The 4% price rise compared with a reduction of 8% in 2008. The company claimed a retention rate of 84.1% (2008: 87%).
Amlin’s US catastrophe accounts, written in the London Reinsurance division and Amlin Bermuda, saw rates rise by 9.6%, with the international catastrophe book improving by 3.1%.
Amlin said: “Looking forward we expect the rating environment in this area will continue to improve. Retrocessional capacity is limited this year following the withdrawal of a number of market participants. This is likely to have a further impact on available primary reinsurance capacity through 2009, particularly for peak exposures. Also, US windstorm renewals are concentrated in the middle of the year and we would expect that, with capacity constrained, this will lead to stronger rating levels.“
Amlin said property and casualty rates were stable but marine premiums leapt, with energy rates up by 22% and hull insurance rates up 8.9%.
Charles Philipps, Chief Executive of Amlin, said: “We are through the bottom of the insurance cycle with strong prospects for hardening rates across our business. We have a strong balance sheet and we are in an excellent position to take advantage of opportunities to grow the Group over this next phase of the cycle.”