Press Releases
Catlin Group Limited announces preliminary results to the year ended 31 December 2003
HAMILTON, Bermuda – Catlin Group Limited, the international property and casualty insurance and reinsurance group, today releases its preliminary consolidated financial results for the year ended 31 December 2003.
| 2003 (US$m) |
2002 (US$m) | |
|---|---|---|
| Gross premiums written | 1,198.2 | 722.9 |
| Net premiums earned | 844.9 | 382.1 |
| Net income/(loss) before tax | 146.3 | (28.3) |
| Net income/(loss) after tax | 127.0 | (11.7) |
| Combined ratio | 86.9% | 113.8% |
| Return on average equity | 22.1% | - |
The Group’s 2003 financial results include insurance business underwritten by Syndicate 2003 at Lloyd’s and Catlin Insurance Company Ltd. (‘CICL’) of Bermuda. The Group’s financial results are prepared in accordance with US generally accepted accounting principles (‘US GAAP’) and are stated in US dollars.
For the year ending 31 December 2003, gross premiums written totalled US$1,198.2 million, an increase of 66% compared with 2002. The Group achieved a combined ratio of 86.9% in 2003, compared with 113.8% the previous year. Net income before tax amounted to US$146.3 million in 2003 while net income after tax amounted to US$127.0 million, generating a return on average equity of 22.1%.
As at 31 December 2003, the Group had total assets of US$2,392.5 million and total shareholders’ equity of US$638.6 million.
Both Syndicate 2003 and CICL have been assigned a financial strength rating of ‘A’ (Excellent) by A.M. Best Company. Syndicate 2003’s Best rating is superior to the overall rating of ‘A-‘ (Excellent) assigned to the Lloyd’s market by A.M. Best.
Sir Graham Hearne, chairman of Catlin, said:
- “2003 was an excellent year for the Catlin Group. Not only do these results speak for themselves, but the Group expanded significantly last year in a number of areas, in both the UK and Bermuda, which give us great scope for further development.”
Stephen Catlin, the Group’s chief executive, said:
- “The Catlin Group had an outstanding year in 2003. Net income and gross premiums written reached record levels, and we achieved a 22% return on average equity. This performance was the result of both our forward-looking approach to business, which has allowed the Group to reap the benefits of advantageous market conditions, and the hard work of the Catlin team. Our achievements in 2003 combined with the Group’s unique operating structure, including three underwriting platforms in 2004, provides a strong base for opportunities this year and beyond.”
For more information contact:
| Catlin Group Limited | ||
| James Burcke, Head of Communications | Tel: | +44 (0)20 7458 5710 |
| Mobile: | +44 (0)7958 767 738 | |
| E-mail: | james.burcke@catlin.com | |
| Gavin Anderson & Company | ||
| Neil Bennett | Tel: | +44 (0)20 7554 1400 (Office) |
| E-mail: | nbennett@gavinanderson.co.uk | |
| Liz Morley | Tel: | +44 (0)20 7554 1400 (Office) |
| E-mail: | emorley@gavinanderson.co.uk |
Information About Catlin Group Limited
Catlin Group Limited is an underwriter of international specialty property/casualty insurance and reinsurance. Over its 20 year history, Catlin has expanded from its traditional base at Lloyd's and has built a distinctive and efficient infrastructure comprised of: a Bermuda holding company; underwriting platforms at Lloyd's, in Bermuda and in the UK company market; and a network of owned offices in the United States, United Kingdom, Asia and Continental Europe. Catlin believes that this structure provides it with considerable scope for earnings growth and a high degree of capital flexibility, and provides the Group with access to the world's major insurance and reinsurance marketplaces.
Catlin believes that its forward-looking approach to business, realistic and flexible approach to underwriting cycles and commitment to gross underwriting profits have allowed it to grow significantly and to generate consistent returns in excess of the Lloyd's market average.
The Group’s three underwriting platforms are:
- Syndicate 2003 at Lloyd’s. Syndicate 2003, which is entirely funded by Catlin and managed by Catlin Underwriting Agencies Limited, is the ninth largest syndicate at Lloyd’s based on 2004 stamp capacity of £500 million ($950 million). The syndicate writes a wide range of specialty property and casualty insurance and reinsurance.
- Catlin Insurance Company Ltd. (CICL). CICL, a Class 4 insurer and reinsurer licensed in Bermuda, began underwriting in 2002 and writes property treaty and casualty treaty reinsurance, and property and casualty insurance for US companies on a surplus lines basis.
- UK Branch of Catlin Insurance Company Ltd. (CICL-UK). The UK Branch of CICL was approved by the UK Financial Services Authority in December 2003 and began underwriting on 1 January 2004. It underwrites specialty lines of property and casualty insurance and reinsurance in parallel with Syndicate 2003. It also writes property, general liability, professional indemnity, directors’ and officers’ liability and crime insurance for UK businesses on a stand-alone basis.
Other Catlin Group offices located in the US, UK, Singapore, Malaysia and Germany underwrite property and casualty insurance and reinsurance business on behalf of the Group’s three underwriting platforms. In total, the Catlin Group underwrites 30 classes of property and casualty insurance and reinsurance.
For the year ended 31 December 2003, Catlin wrote gross premiums totalling nearly US$1.2 billion, a 66% increase over 2002. Net income after tax amounted to US$127.0 million for a return on average equity of 22.1%. The Group’s combined ratio for 2003 was 86.9%. As at 31 December 2003, the Group had total assets of nearly US$2.4 billion and shareholders equity of US$639 million.
Both Syndicate 2003 and CICL have been assigned a financial strength rating of ‘A’ (Excellent) by A.M. Best Company. Syndicate 2003’s Best rating is superior to the overall rating of ‘A-‘ (Excellent) assigned to the Lloyd’s market by A.M. Best.
This announcement does not contain or constitute or form part of any offer or invitation, or any solicitation of an offer, for securities, and any purchase of or application for securities of Catlin pursuant to the proposed offering of common shares (“the Shares”) in Catlin (the “Global Offer”) should only be made on the basis of the information contained in the formal listing particulars to be issued in connection with the Global Offer. The price and value of, and the income from, securities may go down as well as up. Persons needing advice should consult a professional adviser.
This announcement is not an offer of securities for sale in the United States. The Shares have not been and will not be registered under the US Securities Act of 1933, as amended, (the “Securities Act”) and may not be offered or sold in the United States unless registered under the Securities Act or pursuant to an exemption from such registration. Catlin does not intend to make a public offering of the Shares in the United States.
The Global Offer and the distribution of this announcement and the other documents or other information relating to the Global Offer may be restricted by law in certain jurisdictions.
This announcement may include "forward-looking statements". All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Catlin's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Catlin's products and services) are forward-looking statements.
Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Catlin to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. These factors include but are not limited to those described in Part 4: Risk Factors and elsewhere in the formal listing particulars to be issued in connection with the Global Offer.
Such forward-looking statements are based on numerous assumptions regarding Catlin's present and future business strategies and the environment in which Catlin will operate in the future. These forward-looking statements speak only as at the date of the document or other information concerned. Catlin expressly disclaims any obligations or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein, to reflect any changes in Catlin's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.