But attritional loss ratio at lowest rate for four years
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.
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