Amlin GWP up 39% amid “mixed” conditions

Lloyd’s insurer Amlin wrote gross premiums of £1.92bn in the 10 months to 31 October 2010, up 39.4% on the £1.37bn it wrote in the same period last year.

The insurer said that the trading environment in the first 10 months of 2010 had been mixed, with downward pressure on rates in some areas but upward momentum in others, in particular UK fleet motor, offshore energy and marine liability.

Prices across Amlin’s book fell by 1.9% during the first 10 months of the year, compared with a 4.4% increase over the same period in 2009.

The firm reported that rates for US catastrophe reinsurance business continued to fall, dipping by an average of 5.4% in the first 10 months of the year. Rates in the international account were down 0.5%. Amlin said that the earthquakes in Chile and New Zealand during the period would increase rates in their respective territories but would not alleviate downward pressure elsewhere.

Property/casualty rates fell 1.7%, while marine rates were broadly flat. However, Amlin said that the Deepwater Horizon disaster had pushed up prices by up to 50%, particularly for coverage of drilling in deeper waters.

Prices at Amlin UK increased 1.5% on average in the first 10 months of the year. Increases to fleet motor rates now average 2.9%. Average increases of 4.5%, 11.7% and 3.7% were achieved in August, September and October respectively. However the firm added that other UK commercial lines remain competitive.

Amlin has estimated its exposure to September’s earthquake in New Zealand at $75m. Its estimate of losses from the Chilean earthquake remains unchanged.

Amlin released £18.3m in the quarter to 30 September 2010, bringing cumulative reserve releases for the first nine months of 2010 to £81.4m. This was down 38% from the £131.5m it released in the first nine months of 2010.