29th Nov 2006 07:01
Amlin PLC29 November 2006 AMLIN PLC PRESS RELEASE For immediate release 29th November, 2006 TRADING STATEMENT Amlin plc ("Amlin" or "the Group"), the leading insurer, today provided anupdate on current trading as set out below. Premium written and pricing The Group's gross written premium (after brokerage costs) in the nine monthsended 30 September 2006 was £822 million, up 25% over the same period in 2005. Of this, Syndicate 2001's gross written premium was £730 million (at rates of$1.87:£1), compared to £657 million for the previous year. This includesadditional insurance business written for Amlin Bermuda of £26 million. AmlinBermuda has written £118 million (at rates of $1.87:£1) of new premium income tothe Group, including the cessions referred to above. Amlin Bermuda has written mainly reinsurance business, where the ratingenvironment has been strong, and where Syndicate 2001 has experienced some ofits largest rate increases in the year to date. The average renewal rate increase for Syndicate 2001 for the first nine monthswas 7.9% with renewal retention at 79%. This is analysed by division below: Renewal rate Renewal change % retention ratio % Aviation 0.3 81Marine 5.4 79Non-Marine 12.4 81UK Commercial (2.9) 71Average 7.9 79 The non-marine and marine markets, where the rating environments have beenstrongest, have continued to be growth areas for the Group in the third quarter.The aviation division remains under pressure on the airline account and the UKcommercial market continues to see competitive pressure on rates. Accordingly,following our underwriting strategy we have reduced our business in these areas. Claims incidence The level of claims incurred to 30 September for the 2006 underwriting year is10.5% (based on claims incurred divided by premium to date after brokerage), thelowest on record. By comparison the last lowest year at 11.9% was the 2003underwriting year. Including Amlin Bermuda, which so far has had negligibleclaims, the Group's incurred claims ratio is 9.9%. This reflects a benignhurricane season and no major catastrophe in the year to date. Equally, noncatastrophe classes have performed well in the second half of 2006 and the prioryear run off performance in the third quarter was ahead of expectations. Investment returns Investment performance in the third quarter of 2006 was strong, with equityreturns for the first nine months reaching 9.3% and stronger bond performancefollowing falls in short dated US$ yields in the third quarter. For theSyndicate, short sterling bonds returned 1.3% (H1 2006: 0.8%) and US dollars2.7% (H1 2006: 0.3%) in the quarter. $650 million of Amlin Bermuda's capital was invested in US bonds which returned0.9% in the third quarter. The weighted average return on average cash and investments, of £2.2 billion,was 3.3% to the end of October. We increased the equity content of our portfolio by £50 million at the end ofJune and a further £26 million in October. Charles Philipps. Chief Executive of Amlin added: "2006 performance to date has exceeded expectations owing to an exceptionallylow level of claims in a year when we have increased premiums, particularly forcatastrophe exposed business. If this continues, we expect the full year resultto be well ahead of current market forecasts." Enquiries: Charles Philipps, Chief Executive, Amlin plc 0207 746 1000Richard Hextall, Finance Director, Amlin plc 0207 746 1000Hannah Bale, Head of Communications, Amlin plc 0207 746 1000David Haggie, Haggie Financial Limited 0207 417 8989 / 07768 332486 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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