21st May 2015 07:16
LONDON (Alliance News) - Insurer and reinsurer Amlin PLC Thursday said it has had a good start to 2015, with limited loss activity and a robust investment return, even as its gross written premiums fell in the first quarter due in part to the weakness of the euro but also due to a competitive reinsurance market.
Amlin said gross written premiums in the first quarter to the end of March were GBP1.26 billion, down from GBP1.28 billion a year earlier. Income growth from the stronger US dollar was largely offset by the weaker euro, with a similar story for the company's reinsurance business, where the depreciating single currency dragged down income from its marine, aviation and property and casualty lines.
Average renewal rates were down 3.5% in the quarter, compared with a 2.3% decrease a year earlier, while renewal retention rates were at 89.1%, compared with 88.2% in 2014.
Competition in the reinsurance business remains challenging, the group said, and Amlin said it has continued to be selective, with a focus on areas where pricing meets acceptable rates of return. Reinsurance renewal rates were down 6.3% in the quarter, while US catastrophe renewal rates fell by an average of 6.5% and international catastrophe rates were down 10.5%.
US property and casualty rates were down by 2.1%, while marine and aviation renewal rates also came under pressure, particularly in the energy segment, where rates fell by 13% due to the impact of lower oil prices on construction and drilling activity.
"We have had a good first quarter bearing in mind the more competitive market conditions which demand high levels of diligence in risk selection," said Charles Philipps, Amlin's chief executive.
"We expect our business and geographical diversity, which has grown over recent years, to be of increased importance in the current environment," Philipps added.
Amlin shares were up 1.4% to 483.2 pence in early trade on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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