The Bermuda-based Catlin Group Limited issued a general statement following the conclusion of its annual general meeting, held in Bermuda on June 6, which showed a “solid performance by the Catlin Group during the period ended 30 April 2006.”
The statement notes: “Gross premiums written during the period rose 10 per cent compared with the corresponding period of 2005. Weighted average premium rates for hurricane impacted classes of business increased by 28 per cent for business written during the period ended 30 April 2006. Weighted average premium rates for non-hurricane impacted business decreased by 1 per cent during the period. Weighted average premium rates for all classes of business written by the Group increased by 9 per cent. Rates continue to increase significantly in catastrophe exposed classes of property reinsurance where cedants seek significant levels of capacity. Loss experience during 2006 has been in line with expectations across the Group’s overall portfolio.”
Catlin traditionally operates in Bermuda, in the Lloyd’s market and in the U.K. outside of Lloyd’s. It has now expanded into a fourth market – the U.S. The Board statement notes: “On 25 May 2006, the Group completed the previously announced acquisition of American Indemnity Company, a shell property/casualty insurance company admitted in 27 US states, after having received all necessary regulatory approvals.
“The company, which will be renamed Catlin Insurance Company Inc., is commencing to underwrite commercial US property and casualty risks as the Catlin Group’s fourth underwriting platform.” It has opened an office in Atlanta, Georgia, which will serve as the headquarters for the Group’s growing US operations.
Catlin also said that Standard & Poor’s Ratings Services has assigned long-term counterparty credit and insurer financial strength ratings of ‘A-‘ (Strong) to Catlin Bermuda and Catlin UK. In addition, S&P assigned an interactive Lloyd’s Syndicate Assessment of ‘4-‘ (Low Dependency) to the Catlin Syndicate (See IJ Website May 25). “These ratings complement the existing financial strength ratings of ‘A’ (Excellent) that A.M. Best has assigned to the Catlin Syndicate, Catlin Bermuda and Catlin UK,” the bulletin continued.
Chief Executive Stephen Catlin commented: “We have made a good start to the year. Looking ahead to the second half, we have reduced our exposure to hurricane-related events, while taking advantage of the favorable rating environment in catastrophe classes of business. At the same time we are making strong progress with our multi-platform strategy for driving growth in the longer term based on uncorrelated risk. I look forward with confidence”.
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