Amlin has announced record profits for the first half of 2005, up 56% on the same period in 2004 to £134.1m from £86m. This profit is greater than the total profit reported for 2004 which was £128.9m.
Gross written premiums fell slightly to £675.8m from £709.7m for the same period in 2004, while net premiums dropped to £556.5m from £570.4m.
The combined ratio was 69% (72%: H1 2004), comprising a claims ratio of 44% and an expense ratio of 25%.
Charles Philipps, chief executive of Amlin, said: “This has been an exceptionally profitable first half for Amlin. Our performance over the last few years has placed us in a strong financial position so that we are now able to return capital to shareholders, reinforcing our focus on return on equity”.
However, the insurer warned of the impact from Hurricane Katrina. In a company statement it said: “Our provisional loss assessment of $110m (£59.5m) from Hurricane Katrina is still at an early stage especially given the extensive flood damage in and around New Orleans which makes the assessment of loss much more complex than for previous windstorms.
"While we still have much of the windstorm season ahead of us, this compares with our total net hurricane and typhoon losses included in our 2004 results of approximately $130m (£70.3m).”
The insurer added that, “continued favourable trading conditions in 2005 to date, with discipline being more evident than in previous cyclical downturns, is encouraging for the 2006 underwriting year".
Amlin concluded: “We expect rates to continue to soften generally but consider a steep decline to be unlikely. Moreover, the extent of industry loss arising from Hurricane Katrina is likely to help sustain or even improve pricing, particularly for large property and reinsurance risks in areas exposed to windstorm.”