Catlin First Half Profit Falls

Specialty insurer Catlin Group Limited reported a US$86 million profit before tax for the six months ending June 30, 2010. That compares to US$240 million for the half year 2009.

The results include a US$227 million underwriting gain for the six month period. Gross premiums were up 11 percent.

The 51 percent loss ratio was its lowest in four years while the 33 percent expense ratio remained unchanged from first half of 2009. However, the 97 percent combined ratio was higher than the 93 percent for the first half in 2009, with 9 percent due to Chilean earthquake losses.

Stephen Catlin, chief executive of Catlin Group, said profits were reduced by record first-half catastrophe losses and adverse foreign exchange movements. The results were also affected by the Deepwater Horizon loss.

He said non-London underwriting hubs continued to grow, both in terms of premium volume and underwriting profits, with more than 60 per cent of the Group’s net underwriting contribution produced outside London.

The company expects to achieve greater diversification with the launch of Catlin Re Switzerland during fourth quarter of 2010.

For 2009, the Group reported a record profit of $603 million.