HAMILTON, Bermuda - Catlin Group Limited ('CGL': London Stock Exchange), the international specialty property/casualty insurer and reinsurer, announces its financial results for the six months ended 30 June 2012.
Highlights:
- Record US$443 million in net underwriting contribution
- 86 per cent combined ratio
- 50 per cent attritional loss ratio
- US$231 million in profit before tax
- 17.5 per cent annualised return on net tangible assets
- 13.6 per cent annualised return on equity
- 5 per cent increase in average weighted premium rates (9 per cent increase for catastrophe-exposed classes; 2 per cent increase for non-catastrophe classes)
- 6 per cent increase in interim dividend to 9.5 UK pence per share (14.7 US cents)
- 16 per cent increase in sterling net tangible assets per share since 30 June 2011
- 13 per cent increase in US dollar net tangible assets per share since 30 June 2011
|
US$m |
|
30 June 2012 |
30 June 2011 |
|
Gross premiums written |
|
3,010 |
2,683 |
|
Net premiums written |
|
2,258 |
2,269 |
|
Net premiums earned |
|
1,711 |
1,763 |
|
Net underwriting contribution |
|
443 |
(91) |
|
Total investment return |
|
87 |
119 |
|
Net income/(loss) before income taxes |
|
231 |
(201) |
|
Net income/(loss) to common stockholders |
|
184 |
(220) |
|
Earnings per share (US dollars) |
|
$0.53 |
($0.64) |
|
Interim dividend per share (pence) |
|
9.5p |
9.0p |
|
Interim dividend per share (US cents) |
|
14.7¢ |
14.7¢ |
|
Loss ratio |
|
51.6% |
85.0% |
|
Expense ratio |
|
34.7% |
31.5% |
|
Combined ratio |
|
86.3% |
116.5% |
|
Total investment return (annualised) |
|
2.0% |
3.0% |
|
Return on net tangible assets (annualised) |
|
17.5% |
(19.6%) |
|
Return on equity (annualised) |
|
13.6% |
(15.4%) |
|
|
30 June 2012 |
31 Dec 2011 |
30 June 2011 |
|
Total assets |
$14,241 |
$12,959 |
$13,288 |
|
Investments and cash |
$8,465 |
$8,388 |
$8,256 |
|
Stockholders' equity |
$3,397 |
$3,298 |
$3,121 |
|
Net tangible assets (excluding preferred shares) |
$2,197 |
$2,099 |
$1,906 |
|
Unearned premiums |
$2,983 |
$2,119 |
$2,549 |
|
Net tangible assets per share (sterling) |
£4.00 |
£3.93 |
£3.44 |
|
Net tangible assets per share (US dollars) |
$6.28 |
$6.08 |
$5.54 |
|
Book value per share (sterling) |
£5.11 |
£5.06 |
£4.57 |
|
Book value per share (US dollars) |
$8.02 |
$7.85 |
$7.35 |
Stephen Catlin, Chief Executive of Catlin Group Limited, said:
"Catlin produced excellent financial results for the first six months of 2012, including a record underwriting contribution and strong profits before tax. Our business continues to grow, with the London/UK underwriting hub producing meaningful growth for the first time in five years along with a good performance from the rest of the business.
"The rating environment continues to be favourable, as average weighted premium rates across the portfolio increased by 5 per cent during the first half of 2012. Rates for catastrophe-exposed business classes continue to increase, and we are seeing positive momentum for other classes, including US Casualty business. Catlin's focus on underwriting discipline and flexible capital structure puts us in a solid position to take advantage of opportunities as they arise in the second half of the year and beyond."
