Catlin's impressive Q2 profits reflect global footprint

08-08-2014

Re/insurer Catlin has reported a strong set of results for the first half of 2014, with profit more than doubling as a result of resilient global rating conditions and better investment returns.

Its profit for the first half saw a 118 percent increase to $318 million, compared with $145 million in the first half of 2013. The reinsurer’s gross written premiums (GWP) increased 11 percent to $3.7 billion, compared with $3.3 billion in the same period of the prior year.

Catlin’s combined ratio improved to 85 percent for the period, compared with 88.1 percent in the first half of 2013.

Net underwriting contribution increased by 21 percent to $536 million, compared with $441 million in the same period of the prior year.  

The firm says the increase in GWP by the London hub, to $1.6 million from $1.5 million, arose from several factors, including increased energy and property volumes and the increase in the volume of multiyear contracts. Catlin adds that net underwriting contribution rose due to favourable loss experience, both attritional and with regard to major events.

GWP in the US hub increased by 10 percent as investment continued to gain traction. Catlin believes that the small growth in GWP by the Bermuda hub was reflective of the competitive conditions for property catastrophe excess of loss reinsurance, which makes up a large proportion of the hub’s business.

Stephen Catlin, chief executive of Catlin Group, says: "Our strategy is delivering excellent results. During the first half of 2014, profits before tax increased by 118 percent, while our annualised return on net tangible assets was 21.3 percent. Net underwriting contribution reached an all-time high, while the attritional loss ratio remained low, reflecting Catlin’s underwriting discipline.

"All areas of the business performed well. Average weighted premium rates decreased by 3.2 percent across our portfolio, with rating conditions remaining more resilient in our US, Europe, Asia-Pacific and Canada hubs than in the London and Bermuda markets. We continue to see opportunity for further profitable growth, thanks to our investment in our hubs worldwide.”

"Our global footprint gives us the access to a wide range of business, both by class and by geography. Our reputation for underwriting and claims excellence is increasingly recognised by brokers and clients, supporting our leadership position in the marketplace and enhancing business retention.”

"Catlin continues to build a business for the future, and we look ahead with confidence."

Catlin, Q2, results, reinsurance, Stephen Catlin

Bermuda Re