Amlin hits record £509m profit

Amlin announced a record pre-tax profit of £509.1m, up from £121.6m on a combined ratio of 72%, cut from 76%.

Amlin London saw a 24% increase in GWP and a cut in its combined ratio from 81% to 68%.

Financial highlights £m (2008 in brackets)

• Gross written premium 1,543.9 (1,034.0)
• Net written premium 1,322.6 (915.7)
• Net earned premium 1,317.3 (913.5)
• Underwriting contribution 365.8 (222.2)
• Profit before tax 509.1 (121.6)
• Combined ratio 72% (76%)
• Syndicate 2001 combined ratio 74% (73%)
• Amlin Bermuda Ltd combined ratio 56% (83%(
• Amlin Corporate Insurance combined ratio 96%

Amlin London

Amlin London's gross written premium increased by 24.1% over 2008 to £855.7m (2008: £689.7m). Premium growth was driven by a stronger dollar, rate increases and the addition of new business within reinsurance and property and casualty.

More than half of the year on year growth was generated within our reinsurance business, which wrote £389.6m in 2009 (2008: £275.0m). This was achieved whilst maintaining net catastrophe exposures within risk tolerances by ceding business to S6106 which was set up in 2009.

“As we increase our risk appetite in the future we will be able to grow our net premiums by ceding less of this business,” Amlin said.

The contribution from property and casualty increased to £204.0m (2008: £168.6m), Marine accounted for £203.9m (2008: £189.5m) and Aviation £58.2m (2008: £56.6m).

Amlin London's combined ratio, excluding non-monetary exchange differences, improved to 68% from 81% in 2008.

Amlin UK

Amlin UK generated gross written premium of £190.9m, an increase of 25% on 2008 (£152.8m). Average renewal rate increases were 2.0%.

Fleet motor business contributed £82.8m to gross written premium (2008: £60.1m). This includes £7.0m of premium generated from the renewal rights to the commercial motor account of HCC.

“The combined ratio of 81% is a good result given the continued tough trading conditions (2008: 79%). The claims ratio was 53% (2008: 48%), with releases from reserves amounting to £38.7m (2008: £34.4m),” Amlin said.

Strategic progress

Charles Philipps, chief executive, said: "Once again, the Group's financial performance in 2009 was excellent, reflecting the quality of our underwriting businesses and a recovery in investment markets.

“We also made significant progress strategically, most notably with the acquisition of the Fortis Group's commercial insurance operations in the Benelux countries, which now trade as Amlin Corporate Insurance."