Amlin said the outlook for 2004 was excellent as it posted pre-tax profits that had more than doubled from 2002, up from £55.4m to £120m.
“By any measure 2003 was an outstanding year for Amlin,” the company said as it published results for the 12 months ending 31 December 2003.
The combined ratio improved sharply to 83%, up from 95% a year earlier.
Gross written premiums surged 31% to £937m, up from £717m for 2002.
The company said it planned to pay out a minimum of 30% of distributable earnings as dividends in 2004, 2005 and 2006.
The policy renewal season had seen encouraging results, said the Lloyd's insurer, but it had seen a fall of 2% in its average renewal rate. Looking ahead, Amlin said the broader picture in the insurance industry supported an encouraging medium-term outlook.
“Underwriting conditions over the past two years have been exceptional, as reflected in our results, and underpin our expectations for a further strong result for 2004,” it said.
“The reaction of the world's insurance markets to the terrorist atrocities in September 2001 meant that it was inevitable that rates would stabilise and, in those classes that experienced the greatest rises, come off their peak,” Amlin said.
“Even though this has happened, with a normal level of losses, we continue to expect 2004 to be another very good underwriting year and, if past cycles are repeated, for 2005 also to be good. On this basis we can see prospects for good returns on capital as far ahead as 2006.”
