Amlin delivered a good financial performance in the first half of 2014 against the backdrop of continuing rapid change in certain key markets, most notably reinsurance.
The company’s underwriting return for the half was healthy, supported by pleasing growth in written premium and changes made to the outwards reinsurance programme. Despite the challenging conditions facing investment markets, the six month investment return was solid at 1.3 percent.
Amlin Bermuda wrote £292.8 million (H1 2013: £281.7 million) of direct business. Quota share and other reinsurances of other group entities increased its overall written premium to £460.6 million, compared to £416.6 million in the first half of 2013. Average rate decreases on the direct account for the period were 7.7 percent compared to a decrease of 2.8 percent in 2013, but growth in direct business was achieved through proportional reinsurance, catastrophe and special risks classes, which together added £48.4 million of new business.
Net earned premium decreased by 4.6 percent to £259.1 million, compared to £271.7 million in the prior year first half, reflecting revisions to earning patterns for proportional reinsurance business.
Amlin is currently establishing an office in Miami to access treaty reinsurance opportunities from Latin America that do not typically come into the London market. The office is expected to be operational by the fourth quarter of 2014, in preparation for commencing underwriting in January 2015. Business will be underwritten on behalf of Syndicate 2001.
Amlin says its capital position remains strong and able to support profitable growth in favourable trading conditions, and will look to review capital levels more fully alongside its full year results.
It says, “With our diversified business model, both by class of business and by geography, a proven strategy and strong underwriting discipline, we continue to believe that Amlin is capable of delivering healthy, long-term returns to shareholders.”
Charles Philipps, chief executive, adds: “Amlin continues to generate good returns despite a more competitive trading environment, demonstrating the strength of our franchise and the benefit of a well diversified portfolio. While remaining focused on underwriting discipline, we continue to identify opportunities for profitable growth. With the benefit of previous premium growth and significant savings on outwards reinsurance, Amlin remains well positioned in current market conditions.”
Amlin, reinsurance, Q2, results, H1, Bermuda, Charles Philipps