11th Nov 2013 08:54
LONDON (Alliance News) - Catlin Group Limited Monday said its gross premiums written in the first nine months of the year were up 8%, buoyed by a 19% increase in the casualty product group, while average weighted premium rates across the underwriting portfolio increased by 1%.
But Catlin also said its corporate expenses would be higher in 2013 if its performance at the end of the year is in line with its performance at the end of the first nine months of the year, though operating expenditures were in line with expectations during the period.
The specialty property-and-casualty insurer and reinsurer, with underwriting hubs in North America, Europe, Asia Pacific and Bermuda, said it wrote USD4.42 billion in gross premiums in the nine months to September 30, compared with GBP4.08 billion for the corresponding period in 2012. The increase was largely down to strong performances from its international and US underwriting hubs.
The international hub, comprised of Asia-Pacific, Europe and Canada, saw its gross written premium increase by 21% to USD881 million over the period, while the US hub saw its gross written premiums increase by 17% to USD994 million. Bermuda saw a 10% increase to USD541 million, but the London/UK hub declined by 1% to USD2.00 billion.
In terms of product groups, Catlin said it saw strong increases in property and casualty gross premiums, while aerospace was the only one of its six lines to see a decline in gross premiums written over the period, as Catlin continues to reduce its reliance on the sector in light of increasing competition.
Non-London/UK hubs accounted for 55% of gross premiums written over the first nine months of the year.
Catlin says it lost USD148 million from catastrophe and large single-risk loss events, net of reinsurance and reinstatement premiums, over the first nine months, with July's German hailstorms being the only catastrophe event in the third quarter. Those losses also included the crash of an Asiana Airlines Boeing 777 at San Francisco International Airport in July and a food-related product recall in the United States in September.
Catlin, which manages the largest Lloyd's of London syndicate, said it has seen an 11% year-on-year increase in its net premiums earned, reaching USD2.90 billion on that front.
On the other hand, Catlin's investment performance declined compared with the same period last year, returning just 0.7%, primarily a result of a decline in fixed income, compared with 1.8% last year. Catlin cited higher interest rates in May, June and August for the decline in its fixed income investments, though Chief Executive Stephen Catlin said rising interest rates are good for the company in the longer term.
Catlin shares were Monday quoted at 517.00 pence, up 1.1%.
By Samuel Agini; [email protected]; @samuelagini
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