Amlin pretax profit Rises after decreased insurance claims

Insurance company, Amlin announced a rise in pretax profit for the last year of 23.3% helped by a decrease in insurance claims and premium growth.

Major catastrophe losses dropped to £18.5m last year from £152.3m in 2012, as the only notable large disaster in 2013 was the European flooding in May and June.

Highlights of the companies strong financial performance include:

·      Profit before tax up 23.3% at £325.7 million (2012: £264.2 million)

·      Return on equity of 19.8% (2012: 17.4%), above our estimated cost of capital of 8.5%

·      Combined ratio of 86% (2012: 89%)

·      Solid underwriting performance, with limited major catastrophe activity

·      Strong performance from Amlin London and Amlin Bermuda, with continued improvement from Amlin Europe

·      Frequency of European catastrophe activity impacts Amlin Re Europe

·      Average renewal rate down 2.1% at January 2014, with catastrophe rates decreased by an average of 8.4%

·      Excellent investment return of £160.4 million, equivalent to 3.6% on average invested assets
(2012: £165.3 million, 4.1%)

·      Dividend declared increased by 8.3% to 26.0 pence per share (2012: 24.0 pence per share)

·      Net tangible assets per share of 288.7 pence (2012: 259.8 pence)

Charles Philipps, Chief Executive commenting on the results said ”Our 2013 result is a testament to the strength of our talent and reinforces our capability and potential. With a number of businesses improving their performance, and our actions to drive profitability forward, we are well placed to continue to deliver good returns for shareholders.”