Chile quake hits Catlin profits

Catlin announced its H1 pre-tax profit was a fraction of last year’s result at £86m, down from £240m, because of catastrophe losses.

It said the Chile eathquake added nine points to its combined ratio, pushing it to 97%. But it said attritional losses, at 51%, were lowest for four years.

H1 financial highlights (2009 in brackets)

• Gross premiums written 2,461 (2,217)
• Net premiums written 1,893 (1,773)
• Net premiums earned 1,572 (1,298)
• Net underwriting contribution 227 (246)
• Total investment return 140 (198)
• Net income before income taxes 86 (240)
• Net income to common stockholders 57 196
• Combined ratio2 97.5% (93.1%)

Stephen Catlin, Chief Executive of Catlin Group Limited, said: “Catlin’s underwriting operations produced strong underlying results, as the attritional loss ratio in the first half was the lowest in four years.

“However, our profits were reduced by record first-half catastrophe losses and adverse foreign exchange movements. Our results were also impacted by the Deepwater Horizon loss, but as a leading energy underwriter the Group is well-positioned to benefit from improved rates and increased demand.

Outside London

“Our non-London underwriting hubs continued to grow, both in terms of premium volume and underwriting profits, with more than 60% of the Group’s net underwriting contribution produced outside London.

“The diversification provided by our international operations provides us with flexibility and a source of future profitable growth in a challenging marketplace.