Lloyd’s insurer Amlin is starting to detect improvement in both insurance and reinsurance rates following the heavy burden of catastrophes in Q1 2011.
“Before these events the reinsurance market had continued its overall softening trend. Subsequently, reinsurance rates have started to improve, significantly in the more competitive, loss affected territories,” Amlin said in its interim management statement for the four months ended 30 April. “Insurance rates in some markets are also showing early signs of improvement as market participants respond to inadequate pricing, loss events and low interest rates.”
Amlin saw rates fall by 0.4% across its book for the first four months of 2011, compared with a drop of 1.4% in the same period of 2010 and a decrease of 1% in the first three months of 2011.
Rate increases of 3.2% at Amlin UK and 0.1% at Amlin Corporate Insurance in the first four months of 2011 were offset by reductions of 0.4% at Amlin London and 3.6% at Amlin Bermuda.
Amlin’s gross written premium for the year to April 30 increased 13.7% over the same period last year to £1.1bn from £964m. Amlin’s new Swiss reinsurance operation Amlin Re Europe, launched last October, accounted for £78.7m of the increase.
The underlying £78.2 million increase, excluding Amlin Re Europe, is attributable to new business within Amlin London, Amlin UK and Amlin Bermuda, offset by a reduction in income within Amlin Corporate Insurance due to the non-renewal of poorly performing business.
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