18th May 2005 07:00
Amlin PLC18 May 2005 PRESS RELEASE18th May 2005For Immediate Release AGM Statement and update on current trading At its Annual General Meeting held today, Amlin ("Amlin"), the leading Lloyd'sinsurer, will provide an update to Syndicate 2001's forecasts for the 2003 and2004 years of account and will comment on current trading as set out below. Current trading Our underwriting activity in 2005 is developing broadly in line with ourexpectations. Syndicate 2001's premium income (net of brokerage) to the end ofApril 2005 was £415 million (at rates of $1.89:£1), compared to £459 million forthe previous year. This represents 52% of the Syndicate's planned income forthe year. The reduction in premium income is consistent with the 15% reductionin capacity for the syndicate in 2005. The average renewal rate reduction for the first quarter was 3% with renewalretention at 86%. The most recent 1 April renewals for Japanese treatyexposures resulted in modest rate increases, as expected following the scale ofwindstorm losses in Japan during 2004. We expect that rate increases will alsobe achieved on our Florida and Caribbean exposures which renew over the nextcouple of months. The reduction in premium income is predominantly in the non-marine account andreflects a disciplined, profit focussed approach to underwriting as rates comeunder pressure. New business levels are reducing as our underwriters seek toavoid more intensive areas of competition. The most significant catastrophe loss affecting the insurance industry in the2005 calendar year to date is Windstorm Erwin which struck Northern Europe inJanuary. Amlin's gross loss from this event is currently estimated to be £11million. Forecasts The forecasts for the 2003 and 2004 years of account, which are expressed as apercentage of capacity after standard personal expenses, are as follows: Year of Capacity Amlin share Current Previous account £m % forecasts forecasts 2003 1,000 86.2 17.0% to 22.0% 16.0% to 21.0% 2004 1,000 100.0 7.0% to 12.0% 6.0% to 11.0% Claims development for both years of account has been good. A considerableamount of exposure remains on risk for the 2004 year of account, particularlyfor our aviation account, but Amlin expects the forecasts to continue to improveif a normal level of loss development is experienced. Roger Taylor, Chairman of Amlin, added: "Trading conditions remain positive withsome discipline evident in our markets. We are pleased with the continuing gooddevelopment of the 2003 and 2004 years of account which underpins the outlookfor this year." - Ends - Enquiries: Charles Philipps, Amlin plc 0207 746 1000Richard Hextall, Amlin plc 0207 746 1000David Haggie, Haggie Financial Limited 0207 417 8989 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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