14th May 2014 10:37
LONDON (Alliance News) - Catlin Group Ltd Wednesday said first-quarter gross premiums written increased by 9.3%, with growth across all of its underwriting hubs.
In a statement, the specialty property and casualty insurer and reinsurer said gross premiums written rose to USD2.01 billion in the three months ended March 31, compared with USD1.84 billion in the corresponding quarter a year earlier.
Net premiums earned grew by 8.9% to USD1.03 billion, but Catlin said growth at the year-end will likely lag that of the gross figures because of increased amounts ceded to third-party capital providers.
While Catlin reported single-digit growth in gross premiums written by its London, US, and Bermuda underwriting hubs, its international hub, comprising Asia-Pacific, Europe and Canada, grew by 19%. By product line, the increase was roughly evenly spread across casualty, property and reinsurance lines, supported by energy and marine, and, to a lesser extent, aerospace.
Catlin said it continues to manage the aerospace portfolio carefully in the light of continued market competition, while gross premiums written by the reinsurance product group in part reflects the continued growth of Catlin Re Switzerland. The increase in gross premiums written by the energy and marine product group reflects new business development in the Asia-Pacific region, according to Catlin, while growth in casualty classes reflects the "favourable" rate environment and continued growth of US professional lines business.
Average weighted premium rates across the group's underwriting portfolio decreased by 2.0% during the three months ended March 31, Catlin said.
Catlin reported no catastrophe losses during the period, but said there was one large single-risk loss, the disappearance of Malaysian Airlines Flight MH370.
Operating expenditures remained "in line with expectations" during the period, although expenses relating to profit-related bonuses and incentive-based employee share compensation were higher than expected, which Catlin said reflected its "favourable" performance.
Total investment return was USD79.0 million, up from USD48.0 million a year earlier. The 0.6% quarterly return from fixed income securities was driven both by interest income and mark-to-market gains as a result of narrower credit spreads, Catlin said, while the 5.5% quarterly return from "other" invested assets was mainly driven by strong performance by equities.
"Catlin has made a good start to the 2014 underwriting year. We remain committed to our global operating strategy, which stresses underwriting discipline, diversification and capital preservation, and we continue to look ahead with confidence," Chief Executive Stephen Catlin said in a statement.
Catlin shares were Wednesday quoted at 522.50 pence, up 0.5%.
By Samuel Agini; [email protected]; @samuelagini
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