The Bermuda-based Catlin Group Limited posted mixed financial results for the first half of 2008. While gross written premiums were up four percent to $2.075 billion, net income before taxes for the period declined by 21 percent from $190.25 million to $150.2 million.
Other financial highlights in the Group’s report included the following:
– 32 per cent increase in unearned premiums to $2.0 billion
– 12 per cent increase in net underwriting contribution1 to $310 million
– Combined ratio of 91 per cent on US GAAP basis
– 1.8 per cent annualized net investment return, including all unrealized gains and losses
– Net income available to common stockholders of $110 million2
– 9 per cent annualized return on average equity3
– 13 per cent annualized return on average net tangible assets3
– 6 per cent increase in interim dividend to 8.6 pence (16.8 US cents)
On the operational side, Catlin noted the following:
– Strategic premium growth from Catlin Bermuda, Catlin US and international offices
– Highly diversified underwriting portfolio by region and by business class
– Average weighted premium rate decrease of 5 per cent; rate adequacy remains good
– Reduction in expense ratio
Chief Executive Stephen Catlin commented: “I am pleased with Catlin’s performance during the first six months of 2008. We are continuing to realize 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.”
The complete report and further information may be obtained on the Group’s web site at: – www.catlin.com.
Source: Catlin Group