The Bermuda – based Catlin Group Limited announced from its London offices that income before tax for the first half of 2007 was $190 million after acquisition effects. Net income was $162 million.
The earnings announcement cited the following highlights:
— Accelerating financial benefits from acquisition in second half of 2007 [Catlin completed the acquisition of Wellington PLC (See IJ web site Oct. 30, 2006, Jan. 12, 2007)]
— Group on track to meet 2007 financial expectations
— Gross premium written of $2 billion; 29 per cent increase on H1 2006 (combined Catlin ‘as reported’ and Wellington on US GAAP basis)
— 41 per cent increase in unearned premiums during first half to $1.8 billion
— 34 per cent increase in stockholders’ equity during first half to $2.7 billion
— Integration of Wellington operations completed with virtually no business loss as result of acquisition
— Operating and tax synergies resulting from acquisition greater than expected, post-tax synergy expectation for 2008 increased to at least $100 million
— Interim dividend of 8.1 pence (16.4 US cents) per share (30 June 2006: 6.0 pence or 11.3 US cents)
— Further embedded growth benefits will be seen in 2008
Chief Executive Stephen Catlin commented: “I am very pleased with the Catlin Group’s performance during the first half of 2007. Our retention of business following the Wellington acquisition has been excellent, and we have continued to build our business for the future through the recruitment of new underwriting teams and the continued development of Catlin US and our international offices.
“First-half profits were reduced by residual interests of Wellington’s former third-party capital providers and by integration costs. These effects will decline in future periods and the financial benefits of the transaction will grow. Catlin is on track to meet its financial targets for 2007. In 2008, we will benefit from further embedded growth arising from the acquisition as well as at least US$100 million in synergy savings.”
The full report may be obtained on the Group’s web site at: www.catlin.com
Source: Catlin
Topics USA
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