Press Releases
Catlin Group Limited AGM Statement
| 25 May 2007 | Release 2007-9 |
HAMILTON, Bermuda – The Board of Directors of Catlin Group Limited ('CGL': London Stock Exchange), the international specialty insurer and reinsurer, released the following statement at the conclusion of the Group’s Annual General Meeting, held 24 May 2007 in Bermuda.
Current Trading
The Group performed
strongly in the period ended 31 March 2007, reflecting generally
positive market conditions and continued broker support for
Catlin’s enlarged underwriting operations. Gross premiums
written during the first quarter met the Group’s targets and
amounted to US$1.2 billion, compared with approximately US$500
million written by Catlin on a stand-alone basis in the first
quarter of 2006. Margins should remain strong during the remainder
of 2007, but there is expected to be modest pressure on pricing and
volumes.
Business retention in the first quarter, following the acquisition of Wellington Underwriting plc, was consistent with the favourable experience reported by the Group during the January renewal season.
Gross premiums written in London were comparable to the combined volumes during the first quarter of 2006, whilst gross premium volume underwritten in Bermuda grew. The premium volume written by Catlin’s international offices is on track with the published targets established by management. Catlin US continues to attract new underwriting teams and build new specialties, which will lead to increased premium volume during the second half of 2007.
Average weighted premium rates for catastrophe-exposed business increased by 3 per cent during the period ended 30 April 2007, whilst average weighted premium rates for noncatastrophe- exposed business decreased by 4 per cent. Overall, average weighted premium rates for all classes of business decreased by 1 per cent during the period ended 30 April 2007, which is in line with the Group’s expectations. Rate adequacy continues to be good.
The Group’s loss experience during the first quarter was benign, reflecting the relatively low incidence of catastrophic losses. Prior year reserves have developed according to expectations.
Operating expenditures were well within plan during the first quarter of 2007.
Investment Return
The Group’s annualised investment return at 31 March 2007
amounted to 5.7 per cent, including unrealised gains resulting from
the US bond rally in the early part of the year. The Group is
currently reviewing its investment strategy in the light of the
increase in its investment assets.
Other Developments
- The Group has established four new offices in continental
Europe in 2007 in Paris, Barcelona, Zurich and Innsbruck.
- Catlin US’s strategic growth continues with the addition
of experienced underwriting teams specialising in equine, crisis
management, inland marine and excess casualty business, all areas
with which the Group has considerable experience. In addition, a
new office in Cleveland, Ohio, has been established.
- A commercial motor insurance underwriting team has been
recruited in London and will begin writing business for the Group
in the autumn.
- Catlin is one of the inaugural participants in Lloyd's new reinsurance operation in China, Lloyd’s Reinsurance Company (China) Ltd, which opened on 16 April in Shanghai.
Stephen Catlin, chief executive of Catlin Group Limited, said:
“We are very pleased with the performance of the enlarged Catlin Group during 2007. Both the pricing and volumes of business written have met our expectations At the same time, we have reinforced our commitment to disciplined underwriting.
“Whilst we expect continued downward pressure on rates for more classes of business throughout the remainder of 2007, we believe that underwriting margins are still robust. We are prepared for the onset of the Atlantic hurricane season, having substantially reduced our exposure to catastrophic events over the past 18 months.
“Following the Wellington acquisition, the Group has never been better positioned. During the first part of 2007, the Group has been strengthened by new underwriting teams joining in London, in the US and in the Group’s international offices and by the recruitment of senior managers with a broad range of experience. The integration continues to be ahead of expectations, and we are on target to deliver at least the planned synergy savings.
“We look ahead to the remainder of 2007 and beyond with enthusiasm and confidence.”
Catlin will release its financial results for the six months ending 30 June 2007 on Thursday 6 September 2007.
- ends -
For more information contact:
| 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, Maitland |
Tel: |
+44 (0)20 7379 5151 emorley@maitland.co.uk |
| Investor Relations: | ||
| William Spurgin, Head of Investor Relations, London |
Tel: |
+44 (0)20 7458 5726 +44 (0)7710 314 365 william.spurgin@catlin.com |
Notes to editors
| 1. | Catlin Group Limited, headquartered in Bermuda, is an international specialist property/casualty insurer and reinsurer writing more than 30 classes of business worldwide through four underwriting platforms and an international network of offices. Catlin shares are traded on the London Stock Exchange (ticker symbol: CGL). More information about Catlin can be found at www.catlin.com. | |
| 2. | On 18 December 2006, Catlin’s offer to acquire Wellington Underwriting plc was declared unconditional. Combined, Catlin and Wellington underwrote gross premiums of US$2.7 billion during 2006 and produced net income of US$428.5 million. At 31 December 2006, Catlin’s total assets amounted to US$8.8 billion and stockholders’ equity amounted to US$2.0 billion. | |
| 3. |
Catlin’s four underwriting platforms are:
| |
| 4. |
Catlin’s international network of offices allows the Group to diversify further its risk portfolio and to work more closely with local policyholders and brokers. Besides its offices in the UK, US and Bermuda, Catlin operates offices in Canada, Australia, Singapore, Malaysia, Hong Kong, China, Guernsey, Germany, Belgium, France, Spain, Switzerland and Austria. |