Lloyd’s insurer reports improved COR and increased GWP.
Lloyd’s insurer Catlin has announced a profit before tax of $150m (£75m) for the first six months of 2008, up 21% on the same period in the previous year.
The insurer announced a 4% rise in gross written premiums to $2.1bn, with a combined operating ratio of 91%, improved from 92% the previous year.
It provided a 6% increase in interim dividend to 8.6p (16.8 US cents).
Stephen Catlin, chief executive of Catlin Group Limited, said: “I am pleased with Catlin’s performance during the first six months of 2008. We are continuing to realise the benefits arising from the Wellington acquisition and our diversified underwriting portfolio.
“Our underwriting operations performed well, with net underwriting contribution increasing by 12 per cent whilst both written and earned premiums grew. This premium growth was the result of strong performances by Catlin Bermuda, Catlin US and our network of international offices, which more than offset the expected reduction in volume in our London wholesale business. Average weighted premium rates declined by 5 per cent, which was less than anticipated and left good profit potential in nearly all areas of the business.
“Our investment returns suffered in the volatile financial markets. Given the current conditions, Catlin is maintaining a defensive investment position with relatively high levels of cash and liquid assets.
“We are confident about the Group’s prospects. The Board has therefore declared an interim dividend of 8.6 pence (16.8 US cents) per share, an increase of 6 per cent from the 2007 interim dividend.”
