Highlights: Strong Underwriting Reflected in 88.9% Combined Ratio
Strong underwriting performance
US$441 million in net underwriting contribution (30 June 2012: US$443 million), despite US$99 million in net catastrophe losses (30 June 2012: nil)
43 per cent of net underwriting contribution produced by non-London/UK underwriting hubs (30 June 2012: 35 per cent)
88.9 per cent combined ratio
Good underwriting conditions for most classes of business: 1.6 per cent increase in average weighted premium rates across portfolio (0.4 per cent increase for catastrophe-exposed classes; 2.4 per cent increase for non-catastrophe classes)
10 per cent increase in gross premiums written
0.4 per cent annualised total investment return
US$16 million in total investment return as a result of US$76 million in mark-to-market reductions in the value of the fixed income portfolio (30 June 2012: US$87 million total investment return)
Investment portfolio is positioned to benefit over longer term from rising interest rates
US$145 million profit before tax; US$118 million net income to common stockholders
5 per cent increase in interim dividend to 10.0 pence (15.5 US cents)
