Catlin cuts London book

Gross written premiums for Lloyd’s insurer Catlin’s London business fell 2% in the first nine months of 2010 to $1.88bn from $1.92bn in the same period of 2009.

The company said it continued to reduce the volume of business underwritten in the London wholesale market because of competitive conditions for certain classes of business. It added that gross premiums written in London as at 30 June 2010 had similarly decreased by 2%.

Overall, Catlin’s gross written premiums for the first nine months of 2010 were up 9% on the same period last year, to $3.28bn from $3.01bn. Gross written premiums from the Bermuda operation increased 23%, its US book grew 24% and its international book – comprising Asia, Europe and Canada) was up 45%.

Some 43% of Catlin’s business is now underwritten by its operations outside London.

In terms of product line, gross written premiums in Catlin’s aerospace book were down 6%, while they increased in all other lines. The biggest increase was seen in property, where gross written premiums were up 26% on last year’s level.

Rates across Catlin’s book fell on average by 0.5% in the year to September 30 2010, compared with increases of 6% in the same period last year. Average weighted premium rates decreased by 1% for catastrophe-exposed business classes and decreased by 0.2% for non-catastrophe classes during the nine-month period.

Catlin’s combined loss estimate for the Chilean earthquake and the Deepwater Horizon oil rig explosion remained static at $180m.