Amlin posts £1.37bn GWP amid rate hikes

Lloyd’s insurer Amlin said it expected “excellent full-year results” after a 52% rise in gross written premium (GWP) in the first ten months of the year.

The UK insurer was helped by increased rates in UK commercial motor fleet, US catastrophe marine insurance and London marine business.

Amlin said its GWP totalled £1.37bn between 1 January and 31 October, compared with £904.1m in the same period last year. Amlin UK contributed £140.8m and Amlin London accounted for £822.4m of the book.

Chief executive Charles Philipps said: “We have had an outstanding quarter’s performance and expect the full-year result to be an excellent one. Moreover, the group is well-positioned for 2010, in particular with improving conditions for our UK business becoming more visible.”

In an encouraging sign for the UK commercial motor market, Amlin said it had achieved average rate increases of 3.6%, 7.1% and 10.5% in August, September and October, respectively.

The group’s trading statement said: “Looking forward, we expect further increases in UK commercial motor rates in 2010. Typically, other UK commercial classes are slower to improve at this stage in the cycle, but we anticipate greater upward momentum over the next few months.

“Recent investments in our underwriting personnel, marketing and operational infrastructure have positioned the UK business to expand substantially as market conditions offer more attractive returns.”

Other rate increases saw London’s marine energy account shoot up 25.2% for the period, while property and casualty grew by 3.4%.

The group also benefited from a low claims incidence and a growth in investment income.

Shore Capital Stockbrokers analyst Eamonn Flanagan reiterated his “buy” recommendation, citing stronger rates in property catastrophe, energy and UK commercial motor. At close of play on Monday, Amlin’s shares were up 2.4p, or 0.6%, to 387.4p.

Amlin has steadily built its underwriting teams throughout the year. In May, Amlin swooped on Zurich to recruit five underwriters. The biggest coup was recruiting David Hancock, who joined as leading class underwriter.