Catlin Group Limited announced financial results for the year ended
December 31, 2006 that exceeded the expectations of most analysts. The Bermuda-based Company not only managed to smoothly absorb its acquisition of Wellington Underwriting, but also managed to increase profits.
Catlin listed its Financial Highlights as follows:
• Income before tax of US$521 million
• Net income of US$428 million
• Return on average equity of 24 per cent
• Earnings per share of US$1.73
• Gross premiums written of US$2.72 billion, representing 15 percent growth compared with 2005.
Commenting on the Group’s preliminary results, Sir Graham Hearne, Chairman of Catlin Group, stated: “Catlin produced a strong operating performance during 2006, with a return on average equity of 24 per cent. We are confident about our prospects following the acquisition of Wellington, and this confidence is reflected in the proposed total dividend of 23 pence per share, an increase of 48 per cent.”
Chief Executive Stephen Catlin added: “Catlin has made excellent progress, both in terms of our operating results for 2006 and the rapid integration with Wellington. Since our offer for Wellington was declared unconditional on 18 December 2006, we have relocated all London employees to a single office, refinanced the debt we assumed to acquire Wellington and integrated all operational functions.
“We now expect the acquisition to be earnings accretive in 2007 and to produce post-tax savings of at least $70 million in 2008. “The Wellington acquisition provides Catlin with a springboard for future growth. We have made an excellent start to 2007, with written premiums in the January renewal season slightly above the combined volumes for the same period in 2006. We are set to benefit from embedded growth in the amount of business retained by the Group from its Lloyd’s operations, and expect to see continued organic growth from our investment in Catlin US and our international office network. Catlin is in the strongest position in its history, and we look ahead with confidence.”
The full report and additional comment can be obtained on the Group’s web site at: http://www.catlin.com.
Topics Mergers & Acquisitions Trends USA
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