Catlin hit by currency changes

Catlin Group said Q1 premiums had risen 8% but the US dollar-reporting firm had been hit by currency changes suggesting its London market business had fallen by 7%.

Highlights (2008 Q1 in brackets)

• Gross premiums written $1,172.5m ($1,150.0m)
• Net premiums written $895.8m ($767.2m
• Investments and cash $6,743.8m ($6,136.3m)
• London/UK-originating business $777.6m ($840.6m)
• Catlin Bermuda $147.2m (£134.2m)
• Catlin US-originating business $117.2m £86.0m
• International offices £130.5m ($89.2)

Catlin said: “The decrease in gross premiums written arising from London/UK-originating business was created by currency fluctuations. Using constant exchange rates, gross premiums written arising from London/UK-originating business were approximately equal to the first quarter of 2008.

“The main factor behind the 17% increase in net premiums written is the cessation at 31 December 2008 of the quota share reinsurance of the Catlin syndicate under which 12.5% of gross premiums written was ceded to two Lloyd's syndicates capitalised by Names who formerly supplied capacity to Wellington Syndicate 2020.

“The improved market conditions reported at 1 January renewals continued through the first quarter. Average weighted premium rates across the entire underwriting portfolio increased by 6% in the period ended 31 March 2009. Average weighted premium rates for catastrophe classes of business rose by 10%, whilst average weighted premium rates for non-catastrophe classes increased by 4%.”