10th Jan 2007 07:00
Amlin PLC10 January 2007 AMLIN PLCPRESS RELEASEFor immediate release10 January 2007 TRADING STATEMENT Amlin plc ("Amlin" or "the Group"), the leading insurer, is today providing an update on current trading as set out below. Current trading 2006 underwriting The Group's gross written premium (after brokerage costs) in the year ended 31December 2006 was £882 million, up 19% over the same period in 2005. Syndicate 2001's gross written premium was £783 million (at rates of $1.96:£1),compared to £744 million for the previous year at comparable rates of exchange.This includes additional insurance business written for Amlin Bermuda of £28million. Amlin Bermuda has written $250 million of new premium income for theGroup, including the cessions referred to above but excluding the whole accountreinsurance of Syndicate 2001. The average renewal rate increase for Syndicate 2001 for the year was 6.25% withrenewal retention at 77%. The rating trends are similar to that reported inNovember. The non-marine and marine markets, where the rating environments havebeen strongest, have been the growth areas for the Group in the year. AmlinBermuda has written mainly reinsurance business, where the rating environmenthas been strong, and where Syndicate 2001 experienced some of its largest rateincreases in the year. Within the aviation division pricing on the airlineaccount remains under pressure and the UK commercial market continues to seecompetitive pressure on rates. 2007 underwriting 1 January is a major renewal period for a number of key classes of business forAmlin. Amlin has written total income to date of £254 million, a 12% increase onthe previous year. The overall renewal rate increase achieved by Amlin acrossall classes was 1%. Reinsurance rates remained healthy with average rateimprovements on US catastrophe business of 20% and reductions for internationalcatastrophe reinsurance rates of 5%. As noted above, Amlin Bermuda'sunderwriting is concentrated on reinsurance classes. The company had anexcellent start to the year, and, excluding the whole account reinsurance ofSyndicate 2001, has written $87 million to date, a 58% increase on businesswritten at this stage last year. Investment returns Fourth quarter equity market performance was strong and our equity returns forthe year reached 15%. Bond market performance in the fourth quarter was poor as the market started toreduce its expectations of near term rate cuts as US and UK growth remainedrobust. For the year the Syndicate short sterling bonds returned 2.5% (H1 2006:0.8%) and US dollars 3.8% (H1 2006: 0.3%). The weighted average return on average group cash and investments, of £2.1billion, was 4.8% for 2006. Charles Philipps, Chief Executive of Amlin added: "2006 was an excellent year for Amlin with strong premium growth into a benignclaims environment. 2007 has begun well and we are pleased with the Group'sunderwriting position through the important 1 January renewal season." 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/Peter Rigby, Haggie Financial 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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