Catlin reveals record profit

Bermuda-based Lloyd’s insurer Catlin announced a record re-tax profit before tax of $603m after making $13m loss last year.

It had a 12% increase in gross premiums written to $3.7bn on constant currency basis - 8% up on a reported basis from $3.4bn. And it cut its combined ratio from 95% to 89%.

Financial highlights (2008 in brackets)

• Gross premiums written $3,715m ($3,437m)
• Net premiums written $3,168m ($2,611m)
• Net premiums earned $2,918m ($2,596m)
• Net underwriting contribution $651m ($454m
• Total investment return $419m (-$85m)
• Net income/loss before tax $603m (-$13m)
• Combined ratio 89.1% (94.9%)

Sir Graham Hearne, chairman, said: "As Catlin celebrates its 25th anniversary, I believe that the Group is in a strong position to provide further value for its shareholders."

Stephen Catlin, chief executive said: "Twenty-five years after establishing the Group and ten years after we set up our first office outside London, Catlin has achieved a major milestone: Our non-London underwriting hubs in 2009 produced nearly 40% of our underwriting contribution.

"We expect the value of our global distribution system to increase in terms of both premium volume and underwriting profitability.

"I look forward to the Group's continuing success as Catlin enters its second 25 years. The current market environment is good, with attractive pricing levels for most business classes, although the investment environment remains challenging.

“Absent extreme events, we foresee steady increases in our underwriting performance as our international underwriting hubs continue to mature."