Amlin benefited from solid growth in the first quarter of 2014 despite reducing rates on most lines of business, particularly property-catastrophe lines.
The company’s gross written premiums for the quarter were £1.27 billion, a 5.1 percent increase on the same period the year before. Changes to its outwards reinsurance programme meant that its net written premiums enjoyed a bigger 11.9 percent increase, rising to £1.04 billion in the quarter.
The average rate at which business renewed was 2.3 percent lower, compared with a 1.2 percent increase in the prior year quarter. Softened rates were most distinct in catastrophe reinsurance, declining 8.8 percent in its own portfolio. It noted, however, that this was lower than reductions in the market as a whole.
“There is clear evidence of increasing competition in a number of business lines, most notably catastrophe reinsurance. However, good margins remain possible and in this more challenging environment, Amlin achieved growth in catastrophe reinsurance GWP’s of 3.7 percent for the period, while recording an average renewal rate decline of 8.8 percent. US catastrophe renewal rates reduced by an average of 10.3 percent, while international catastrophe renewals experienced average rate decreases of 7.3 percent,” the company says.
It says that other reinsurance lines have not come under the same pressure as catastrophe reinsurance and Amlin Re Europe continued to develop positively, adding £30.3 million of new income in the period with an average renewal rate decrease of only 1 percent. Its first quarter result was promising, with growth in earned premium reducing the expense ratio.
“These rate reductions are believed to be lower than the catastrophe reinsurance market as a whole and is a result of the combination of Amlin's highly respected traditional reinsurance offering with that of Leadenhall Capital Partners which has strengthened Amlin's client proposition. The result has been preferential signings, access to business which is not available in the open market and, on some business, better pricing.”
Amlin, growth, Q1, rates, property catastrophe