Amlin has said it expects, in the absence of unforeseen circumstances, its pre-tax profit for 2005 will be ahead of consensus market forecasts.
The company said that gross written premium in 2005 (net of brokerage) for its Syndicate 2001 was £810m, compared with £830m in the previous year.
However, after removing reinstatement premiums relating to the windstorm losses in each year, the reduction in premium was a modest 2%. The average renewal rate reduction for the 2005 year was 4%, weighted across premium by business class.
Amlin's estimate of the overall impact of Hurricanes Katrina, Rita and Wilma remains broadly unchanged from that announced previously.
Amlin said its US catastrophe reinsurance renewals have seen rate increases averaging approximately 15% with larger increases being experienced in wind exposed regions. It added that it expected this would increase as the major wind-exposed programmes were renewed.
Amlin Bermuda has written $55m (net of brokerage) of new business to date, excluding intra group business ceded to it by Syndicate 2001.
The company said the strategy of using London distribution for sourcing Amlin Bermuda's business had proven to be beneficial and it had been encouraged by the strong support of the London brokers.
In the face of significant proposed price increases, particularly for retrocessional cover in its reinsurance programme, the syndicate has increased net retentions for 2006 to control overall expenditure and Amlin Bermuda has provided some capacity for the Syndicate.
Charles Philipps, chief executive, said: "2006 has started well and Amlin Bermuda has had a very good reception from our UK based brokers.
"We believe there is scope for continued rate strengthening as the year progresses, as markets in some classes, such as direct property insurance, have yet to respond to the increased cost of reinsurance cover, and the main renewal season for key wind-affected zones of the world is later in the year. The outlook is positive."
