2nd Mar 2015 07:56
LONDON (Alliance News) - Amlin PLC Monday reported a drop in pretax profit in 2014 amid pressure on investment returns and a lower underwriting result.
Nevertheless, Amlin said it would increase its ordinary dividend for the year by 3.8% to 27.0 pence per share, while also moving to declare a special dividend of 15.0 pence per share, citing confidence in its capital position.
In a statement, Amlin said it made a GBP258.7 million pretax profit in 2014, compared with GBP325.7 million in 2013.
Underwriting returns fell to GBP246.0 million from GBP283.1 million, while investment return fell to GBP118.5 million from GBP160.4 million.
"The combination of increasing price competition and the continued low interest rate environment makes the outlook more challenging," Chief Executive Charles Philipps said in a statement.
"Where necessary, we will temper our growth ambitions and, in some areas, will even retract if pricing falls below levels we consider to be technically sound. With the lower pricing in catastrophe reinsurance we have reduced our catastrophe risk appetite," Philipps said.
By Samuel Agini; [email protected]; @samuelagini
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