Lloyd’s insurer pays out £7m in UK flood claims
Lloyd’s insurer Amlin’s UK business wrote £127.6m of gross premium (GWP) in the first quarter of 2014, down 9.6% on the £141.2m it wrote in the same period last year.
Amlin blamed the drop on reduced income estimates from binding authorities made later in 2013.
However, the company said that rates in its fleet motor business continued to rise, increasing by 6.1% in the quarter.
Most other UK commercial business classes had “modest” rate increases, the insurer said.
Amlin’s average renewal rate increase across its UK business in the first quarter of 2014 was 2.1%, compared with 2.2% in the first quarter of 2013.
The company also revealed that the UK floods in January and February had cost it £7m.
Group-wide, Amlin’s GWP increased by 5.1% to £1.28bn in the first quarter of 2014 (Q1 2013: £1.22bn).
Rates across the group fell by 2.3% in the quarter, compared with a 1.2% increase in last year’s first quarter.
The main driver of the rate fall was an 8.8% drop in renewal rates for catastrophe reinsurance business.
Amlin released £17.4m from reserves in the first quarter of 2014, up 18% on the £14.7m of reserves it released in the same period last year.
Amlin chief executive Charles Philipps said: “The first quarter of 2014 has demonstrated that Amlin remains well positioned in a mixed trading environment.
“We continue to benefit from the strength of our reinsurance franchise and our partnership with Leadenhall Capital, which are creating new opportunities for Amlin as the market evolves.
“Elsewhere, the quality and diversity of our portfolio and our investment in broadening the footprint of Amlin’s business continue to offer scope for long-term profitable growth.”