Insurer points to drop in investment returns, and claims underwriting remains strong.
Amlin has reported a profit before tax of £137.3m for the first six months of 2008, down 26% year-on-year.
Gross written premiums were also down, at £715.5m for the first half of 2008, compared to £805.2m for the first half of 2007.
The combined operating ratio was 67%, improved from 71% the previous year.
Investment returns were down to 0.7%, from 2.6% in the same period last year, which the insurer blamed on the challenging economic conditions. Contribution from investments was down 65.5% to £22.5 million.
It said the underwriting contribution remained strong at £148.7m, down from £151.9m in the first half of 2007.
Charles Philipps, chief executive, said: “Our underwriting returns have again been excellent. Even with the effects of the credit crisis on investment returns in the first half we have achieved a strong return on equity. Over the next two years we expect the diversity of our underwriting to be increasingly recognised as a key strength, as rate increases in areas such as UK commercial motor and property lines help compensate for the softening of rates in other parts of our business.”
Amlin has recently taken stakes in two brokers, Miles Smith and TL Dallas.
