Amlin hit by hurricane losses

Amlin has announced it pre-tax profits for 2008 were just over a quarter of its 2007 figure on a slightly smaller gross written premium income and the second largest catastrophe losses in its history at $302.3m (£212m).

Highlights (2007 in brackets):

• Gross written premium 1,034m (1,044.7)
• Profit before tax of £121.6m (£445.0m).
• Return on equity of 7.8% (37.8%).
• Combined ratio of 76% (63%).
• Balance sheet and capital management
• Net assets increased 15.6% to £1,216.1m (£1,052.3m).
• Run-off profits from reserves of £114.7m (£109.0m).
• £27.6m shares purchased through share buy-back programme.
• Dividend (paid and proposed) increased by 13.3% to 17.0 pence per share.
• Net unearned premium reserves of £518.4m (£474.3m).
• Hurricanes Gustav and Ike total losses of $302.3m

Charles Philipps, chief executive, said: “Our results again demonstrate the quality of our underwriting businesses as well as our focus on risk management. The outlook for 2009 and 2010 underwriting is improving and we expect to see good opportunities for growth supported by a robust balance sheet and superior financial strength ratings.”

By division:

• Reinsurance and Property and Casualty GWP £443.6m (£500.6m), with combined ratio of 78% (60%)
• Marine GWP £189.5m (£187.2m), with combined ratio of 87% (83%)
• Aviation GWP £56.6m (£63.6m) with combined ratio of 84% (70%)
• Amlin UK GWP £152.8m (£149.2m), with combined ratio 80% (86%)
• Amlin Bermuda GWP of $549.5m (466.8m), with combined ratio 83% (46%)