Catlin Group’s Interim Management Statement Shows Top Line Gains

The Bermuda-based Catlin Group Limited has just released its “Interim management Statement,” which shows premium gains in most sectors, but did not give fianncial results.

Catlin operates extensively in the U.S., as well as from its Bermuda headquarters, from international offices and its traditional London market.

The group reported a five percent increase in gross written premiums for the first nine months of 2008 from $2.735 billion to $2.858 billion, despite a five percent decrease in average weighted premium rates. While total investments rose to $6.184 billion, Catlin’s investment returns for the first nine months, however, have been a negative 0.9 percent.

While London/UK originated business fell by 6 percent to $1.978
billion, other areas saw substantial growth. Bermuda business rose 28 percent to $374 million; Catlin U.S. grew by 16 percent to $257 million, and international business rose 96 percent to $249 million.

Catlin said its “losses arising from Hurricanes Ike and Gustav were estimated at approximately US$200 million, net of reinsurance protections and reinstatement premiums. There has been no change to this estimate, which is based on the assumption that market-wide losses from Hurricane Ike will amount to approximately US$15 billion.”

Chief Executive Stephen Catlin commented: “2008 has proven to be an extremely challenging year. However, these challenges – including Hurricane Ike and the turmoil in the financial markets – together with events affecting some of our major competitors have removed significant amounts of capital from the marketplace and are causing the market to turn.

“Rates for some types of reinsurance are already rising as a result, and we expect significantly improved conditions for most classes of reinsurance and some classes of insurance by year-end renewals. We believe rates for many other classes of insurance will begin to rise later in 2009.

“Catlin’s business plan for 2009 is based on increasing premium rates and volumes across the Group’s underwriting platforms and international offices. Catlin foresees good underwriting results in 2009 and beyond.”

Source: Catlin Group – www.catlin.com

Topics USA