CATLIN GROUP LIMITED ANNOUNCES FINANCIAL RESULTS FOR YEAR ENDED 31 DECEMBER 2012
HAMILTON, Bermuda - Catlin Group Limited ('CGL': London Stock Exchange), the international specialty property/casualty insurer and reinsurer, announces its financial results for the year ended 31 December 2012.
Highlights
US$339 million profit before tax (2011: $71 million); US$305 million net income to common stockholders (2011: $38 million)
14.6 per cent return on net tangible assets (2011: 1.7 per cent); 11.3 per cent return on equity
(2011: 1.3 per cent)
10 per cent increase in gross premiums written to US$4.97 billion (2011: US$4.51 billion)
13 per cent increase in gross premiums written for non-London/UK hubs
49 per cent of total GPW produced by non-London/UK hubs
50.6 per cent attritional loss ratio (2011: 50.0 per cent)
90.0 per cent combined ratio (2011: 102.6 per cent)
143 per cent increase in underwriting contribution to US$788 million (2011: US$324 million)
Total investment return of 2.0 per cent (2011: 3.1 per cent)
5.4 per cent increase in annual dividend to 29.5 UK pence per share (46.0 US cents) (31 December 2011: 28.0 UK pence; 44.9 US cents)
John Barton, Chairman of Catlin Group Limited, said:
"Catlin performed well during the year ended 31 December 2012, with a strong underwriting performance. Net underwriting contribution amounted to US$788 million, the highest in five years. The attritional loss ratio remained low at 50.6 per cent, demonstrating the quality and discipline of our underwriting.
"Our diversification strategy is contributing to our underwriting success. The non-London/UK underwriting hubs continue to grow and now account for 50 per cent of overall gross premiums written. More importantly, all of our underwriting hubs produced underwriting contributions in 2012.
"Catlin has the strategy and people in place to deliver excellent results. I am confident that Catlin will continue to produce strong returns for its shareholders."
Stephen Catlin, Chief Executive of Catlin Group Limited, said:
"The value of Catlin's operating strategy was clearly demonstrated by the Group's performance during 2012, during which the Group produced a return on net tangible assets of 14.6 per cent and a return on equity of 11.3 per cent.
"We aim to build on this performance. Market conditions for many classes of business are currently good. Pricing for catastrophe-exposed business is at a high level, following rate increases in 2011 and 2012, as well as further rate improvements for US Property reinsurance at 1 January 2013 renewals in the aftermath of Windstorm Sandy. There is also an improving environment for certain lines of non-catastrophe business, such as US Casualty classes.
"Catlin enters 2013 in an excellent position. Our business model - including our focus on underwriting discipline and our global distribution network - has proved successful. We believe that attractive underwriting opportunities exist across our six underwriting hubs. Our capital base remains solid and flexible. Catlin continues to build a business for the future, and we look ahead with confidence."
