21st Nov 2005 07:01
Amlin PLC21 November 2005 AMLIN PLC PRESS RELEASE To be released 7am21 November 2005 Trading update: • Continued improvement in syndicate forecasts• Full year outlook remains good Amlin plc ("Amlin") today releases a trading update, including an improvedforecast for Syndicate 2001 for the 2003 year of account and an initial lossestimate for Hurricane Wilma. Syndicate 2001 Syndicate 2001's premium income (net of brokerage) to the end of October 2005was £715 million (at rates of $1.77:£1 and excluding reinstatement premiums ofapproximately £22 million from hurricane events). This represents 88% of theSyndicate's planned income for the year and is in line with expectations. The average renewal rate reduction of 4% to date reflects market conditionsprior to this season's hurricane losses. Recent price movements show a reversalof recent rating trends in many classes with increases in rates for propertyinsurance and reinsurance, energy and marine classes in general. For syndicate2001 the level of income renewed at this time of the year is low and it isexpected that rate movements will accelerate for the January renewals. Syndicate forecasts The updated forecasts for the 2003 and 2004 years of account for Syndicate 2001,which are expressed as a percentage of capacity after standard personalexpenses, are as follows: Year of Capacity Amlin share account £m % Current forecasts Previous forecasts2003 1,000 86.2 21.0% to 26.0% 18.0% to 23.0%2004 1,000 100.0 8.0% to 13.0% 8.0% to 13.0% The improvement in the 2003 forecast reflects excellent development for the 2003year of account and releases of reserves from prior periods. The 2004 year of account forecast has remained stable despite absorbing a netclaim estimate of approximately £19 million for the 2005 hurricane losses withthe underlying improvement reflecting better than forecast development acrossall divisions of the Syndicate. Amlin expects that the 2004 forecast willcontinue to improve if the Syndicate experiences normal or better than normalclaims development. Hurricane loss estimates The loss estimates for Hurricanes Katrina and Rita combined remain materiallyunchanged from those included with the rights issue prospectus. The provisionalnet loss from Hurricane Wilma is estimated to be US$52 million. Amlin plc The better than expected underwriting climate in 2005 to date and the continuedimprovement in prior period reserves are significant offsetting factors to thehurricane losses for Amlin. Consequently the Group continues to expect a goodfull year performance. With the increase in Syndicate 2001 capacity to £1 billion for 2006 and theformation of Amlin Bermuda, Amlin is positioned well to increase its activitiesinto what is expected to be a good underwriting climate. Charles Philipps, Chief Executive of Amlin, added: "The diversity of Syndicate2001's business, with many classes unaffected by claims emanating from thewindstorm season, coupled with the skill of our underwriting team, againdemonstrates the strength of the Amlin franchise. Despite the hurricane lossesof this year we continue to expect a good financial performance for the businessin 2005." -Ends- Enquiries: Charles Philipps, Amlin plc 0207 746 1000Richard Hextall, Amlin plc 0207 746 1000David Haggie, Haggie Financial Limited 0207 417 8989/07768 332 486Peter Rigby, Haggie Financial Limited 0207 417 8989/07803 851 426 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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