Press Releases

Catlin Group Issues Update on Estimated Hurricane Losses

HAMILTON, Bermuda - Catlin Group Limited ('CGL': London Stock Exchange), the international specialist property and casualty insurer and reinsurer, has completed its initial estimate of losses arising from Hurricane Wilma and has reviewed its loss estimates for Hurricanes Katrina and Rita.
 
Catlin estimates its losses from Hurricane Wilma to be approximately US$45 million, net of reinsurance.  

There has been no material change to the estimated net loss of approximately US$60 million from Hurricane Rita previously advised to the market. 

On 19 October 2005, Catlin affirmed its loss estimate for Hurricane Katrina of US$275 million gross and US$125 million net of reinsurance.  That estimate was consistent with a market loss of US$40 billion.  Since that time, little detailed loss information has emerged.  However, anecdotal information, loss advices on individual inwards reinsurance contracts and the weight of market commentary suggest that the market loss is likely to exceed that amount. 

Catlin’s direct insurance losses with respect to Hurricane Katrina continue to be within expectations, and significant reinsurance protection remains for those accounts.  Loss details for the catastrophe reinsurance book, which is not reinsured, remain incomplete.  While the loss notifications received to date in these classes are unsupported by detailed information or analysis, they have been larger than initially anticipated.  Catlin is therefore increasing its net loss estimate for Hurricane Katrina by US$75 million to US$200 million.

Catlin’s estimated net losses from Katrina, Rita and Wilma total approximately US$305 million.

In spite of the unprecedented natural catastrophe losses during 2005, Catlin remains optimistic that it will achieve a small profit for the year.  This demonstrates the strong underlying performance of Catlin’s portfolio.

Stephen Catlin, chief executive, said:

“The global insurance industry has experienced an unprecedented level of losses from Hurricanes Katrina, Rita and Wilma, which will create challenges for the market.  However, the net losses sustained by Catlin are broadly consistent with our modelled assumptions for events of this magnitude. 

“Catlin’s balance sheet remains strong.  This demonstrates the value in Catlin’s strategy of underwriting diverse classes of business and continually seeking uncorrelated risk.  As the year-end renewal season begins, we are ready to take advantage of significantly improved underwriting opportunities across our portfolio.”

- ends -

For more information:

Media Relations:    
James Burcke,
Head of Communications,
London

Tel:
Mobile:
E-Mail:

 +44 (0)20 7458 5710
+44 (0)7958 767 738
james.burcke@catlin.com 
Liz Morley,
The Maitland Consultancy,
London

 Tel:
E-mail:		 +44 (0)20 7379 5151
emorley@maitland.co.uk
Investor Relations:    
William Spurgin,
Head of Investor Relations,
London

Tel:
Mobile:
E-mail:

 +44 (0)20 7458 5726
+44 (0)7710 314 365
william.spurgin@catlin.com




Notes:

1.   The Catlin Group, headquartered in Bermuda, is an international specialist property/casualty insurer and reinsurer writing more than 30 classes of business worldwide.  Catlin wrote gross premiums of US$1.43 billion and reported record net income of US$154.1 million in 2004.  Catlin shares are traded on the London Stock Exchange (ticker symbol: ‘CGL’).
2.  

The Catlin Group currently operates three underwriting platforms:

  • The Catlin Syndicate at Lloyd’s of London (Syndicate 2003). The Catlin Syndicate is the eighth largest syndicate at Lloyd’s based on 2005 premium capacity of £500 million. It is a recognised leader of numerous classes of specialty insurance and reinsurance.  Over the past 20 years, the Catlin Syndicate and its predecessors have consistently outperformed the Lloyd’s market as a whole.

  • Catlin Bermuda (Catlin Insurance Company Ltd.).  Catlin Bermuda underwrites property treaty and casualty treaty reinsurance and property and casualty insurance for US risks on a surplus lines basis.

  • Catlin UK (Catlin Insurance Company (UK) Ltd.).  Catlin UK specialises in writing commercial property, general liability, professional indemnity, directors' and officers' liability and commercial crime insurance for UK clients.  It also writes other classes of business written by the Catlin Syndicate.

All three Catlin underwriting platforms have a financial strength rating of ‘A’ (Excellent) from A.M. Best Company.

In addition, Catlin announced in September 2005 that it had reached an agreement to purchase a shell insurance company which is an admitted insurer in 27 US states. Subject to completion of the acquisition and regulatory approval, this company will be renamed Catlin Insurance Company Inc. and become the Group’s fourth underwriting platform, writing property/casualty coverage  for US commercial clients that require coverage written on an admitted basis.

The Catlin Group also has established offices in the US, UK, Guernsey, Canada, Germany, Belgium, Singapore, Malaysia and Australia.  These offices, which underwrite on behalf of Catlin’s underwriting platforms, allow Catlin to work more closely with local clients and their brokers.

3.   For more information about Catlin, please see the Group's website at www.catlin.com.