Press Releases
Catlin Group Limited Financial Results for Six Months Ended 30 June 2008
8 August 2008
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 2008.
Financial Highlights
- 4 per cent increase in gross premiums written to $2.1 billion
- 32 per cent increase in unearned premiums to $2.0 billion
- 12 per cent increase in net underwriting contribution1 to $310 million
- Combined ratio of 91 per cent on US GAAP basis
- 1.8 per cent annualised net investment return, including all unrealised gains and losses
- Profit before tax of $150 million
- Net income available to common stockholders of $110 million2
- 9 per cent annualised return on average equity3
- 13 per cent annualised return on average net tangible assets3
- 6 per cent increase in interim dividend to 8.6 pence (16.8 US cents)
Operational Highlights
- Strategic premium growth from Catlin Bermuda, Catlin US and international offices
- Highly diversified underwriting portfolio by region and by business class
- Average weighted premium rate decrease of 5 per cent; rate adequacy remains good
- Reduction in expense ratio
| 1 | Net underwriting contribution is defined as net
premiums earned less losses and loss expenses and policy
acquisition costs |
| 2 | Net income available to common shareholders for the period ended 30 June 2008 is stated after payment of US$21.8 million preferred share dividend; no dividend was paid in the comparable period of 2007 |
| 3 | Annualised returns on average equity and net tangible assets exclude preferred shares |
| US$000 | 30 June 2008 | 30 June 20071 | % change |
|---|---|---|---|
| Gross premiums written | 2,075,070 | 1,997,507 | 4% |
| Net premiums written | 1,461,426 | 1,417,567 | 3% |
| Net premiums earned | 1,263,444 | 1,184,288 | 7% |
| Net underwriting contribution | 309,894 | 277,394 | 12% |
| Net income before income taxes | 150,206 | 190,249 | (21%) |
| Net income available to common stockholders2 | 110,456 | 161,720 | (32%) |
| Earnings per share (US dollars)2 | 0.44 | 0.65 | (32%) |
| Interim dividend per share (pence) | 8.6 | 8.1 | 6% |
| Interim dividend per share (US cents) | 16.8 | 16.4 | 2% |
| Loss ratio | 54.6% | 55.1% | |
| Expense ratio | 36.3% | 37.1% | |
| Combined ratio | 90.9% | 92.2% | |
| Annualised investment return | 1.8% | 4.3% | |
| Effective tax rate | 12.0% | 15.0% | |
| Annualised return on average equity3 | 9.1% | 15.7% | |
| Annualised return on average net tangible assets3 | 13.3% | 24.6% | |
| 30 June 2008 | 31 Dec 20071 | Change | |
| Total assets | 10,454,817 | 9,600,845 | 9% |
| Investments and cash | 6,217,167 | 6,001,144 | 4% |
| Stockholders' equity | 3,000,983 | 3,017,004 | (1%) |
| Unearned premiums | 1,981,738 | 1,506,899 | 32% |
| Book value per share (US dollars)3 | 9.69 | 9.59 | 1% |
| Net tangible assets per share (US dollars)3 | 6.67 | 6.57 | 2% |
| 1 | Certain prior-year amounts have been restated to
conform with current year presentation |
| 2 | Net income available to common shareholders and earnings per share for the period ended 30 June 2008 are stated after payment of US$21.8 million preferred share dividend; no dividend was paid in the comparable period of 2007 |
| 3 | Annualised returns on average equity and net tangible assets and book value and NTA per share exclude preferred shares. Per-share amounts exclude treasury shares |
Stephen Catlin, Chief Executive of Catlin Group Limited, said:
"I am pleased with Catlin's performance during the first six months of 2008. We are continuing to realise the benefits arising from the Wellington acquisition and our diversified underwriting portfolio.
"Our underwriting operations performed well, with net underwriting contribution increasing by 12 per cent whilst both written and earned premiums grew. This premium growth was the result of strong performances by Catlin Bermuda, Catlin US and our network of international offices, which more than offset the expected reduction in volume in our London wholesale business. Average weighted premium rates declined by 5 per cent, which was less than anticipated and left good profit potential in nearly all areas of the business.
"Our investment returns suffered in the volatile financial markets. Given the current conditions, Catlin is maintaining a defensive investment position with relatively high levels of cash and liquid assets.
"We are confident about the Group's prospects. The Board has therefore declared an interim dividend of 8.6 pence (16.8 US cents) per share, an increase of 6 per cent from the 2007 interim dividend."
- 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: 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 to editors:
- 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 – the Catlin Syndicate at Lloyd's,
Catlin Bermuda, Catlin UK and Catlin US – and an
international network of offices. Gross premiums written in 2007
amounted to US$3.4 billion. Catlin shares are traded on the London
Stock Exchange (ticker symbol: CGL). More information about Catlin
can be found at www.catlin.com.
- Catlin's financial statements are prepared in accordance with
accounting principles generally accepted in the United States of
America (`US GAAP'). The Group reports in US dollars.
- Catlin management will make a presentation to investment
analysts at 9.30am BST today at its London office. The presentation
will be broadcast live on the Group's website (www.catlin.com). The
webcast will also be available on demand later today.
- Rate of exchange at 30 June 2008 – balance sheet:
£1 = US$1.98 (30 June 2007: £1 = US$2.01); income
statement: £1 = US$1.99 (30 June 2007: £1 =
US$1.98).
- Detailed information regarding Catlin's financial results for the period ended 30 June 2008 follow, including the unaudited consolidated financial statements.
See full Interim Results in PDF format (307 KB)