Amlin has beaten forecasts with its record interim profits.
Amlin’s first half performance was ahead of analysts’ forecasts.
The Lloyd’s giant reported pre-tax profits of £185m for the first half of the year, up 54% on 2006. Numis had forecast profit before tax of £153m.
Evo securities said the results were strong and well ahead of the consensus figure published by the company of £147m and its forecast of £160m.
Amlin saw its combined ratio improve eight points in the first half to 71%, while its return on equity increase to 31.8% from 24.2%.
Numis said: “The combined ratio of 71% is even better than the first half of 2006 (79%) helped by a £15m increase in prior year profit to £41m.”
Premium income levels fell with gross written premiums were down 5% to £805m, although Numis noted that this was mainly currency related.
It concluded: “We may modestly increase full year 2007 forecasts but see far greater upside if catastrophe experience is light during the remainder of the year.”
Evo Securities said it would not be upgrading its full year forecast at this stage of the year “since H2 is likely to be impacted both by "modest losses" from hurricane Dean and the July UK floods and a more difficult investment environment”.
It added: “The irony, however, is that we need to see further losses from this year's hurricane season if rating levels for catastrophe business are to be maintained and current levels of profitability sustained.”
