Press Releases
Catlin Group Limited Financial Results for Six Months Ended 30 June 2009
7 August 2009
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 2009.
Financial Highlights
- 60 per cent increase in profit before tax to record US$240 million (30 June 2008: US$150 million)
- 77 per cent increase in net income to common stockholders to
record $196 million
(30 June 2008: US$110 million) - 18 per cent annualised return on average equity (30 June 2008: 9 per cent)
- 25 per cent annualised return on net tangible assets (30 June 2008: 13 per cent)
- 9 per cent increase in interim dividend to 8.2 pence (13.8 US cents) per share (30 June 2008: 7.5 pence; 14.6 US cents1)
- 14 per cent increase in gross premiums written to US$2.2 billion on constant currency basis; 7 per cent increase on a reported basis (30 June 2008: US$2.1 billion)
- 9 per cent increase in net premiums earned to US$1.3 billion on constant currency basis; 3 per cent increase on a reported basis (30 June 2008: US$1.3 billion)
- 96 per cent combined ratio on US GAAP basis (30 June 2008: 91 per cent)
- 2.9 per cent investment return for period (30 June 2008: 0.9 per cent)
- 10 per cent increase in dollar net tangible book value per share in first half to US$5.09 (31 December 2008: US$4.63)1
Operational Highlights
- Average weighted premium rate increase across risk portfolio of 6 per cent
- Growing profitable contribution from Catlin US, international offices
- Attritional loss ratio on target
- Embedded growth emerging as anticipated
- Proceeds from US$289 million capital raise already being utilised
- Brand awareness increased among brokers and clients via Catlin Arctic Survey
| 1 | Prior periods adjusted for impact of 2 for 5
Rights Issue completed in March
2009 |
| US$000 | 30 June 2009 | 30 June 2008 | % change |
|---|---|---|---|
| Gross premiums written | 2,217,097 | 2,075,070 | 7% |
| Net premiums written | 1,772,692 | 1,461,426 | 21% |
| Net premiums earned | 1,297,823 | 1,263,444 | 3% |
| Net underwriting contribution1 | 246,177 | 309,894 | (21%) |
| Net investment return | 195,022 | 53,941 | 262% |
| Net income before income taxes | 239,771 | 150,206 | 60% |
| Net income to common stockholders | 195,847 | 110,456 | 77% |
| Earnings per share (US dollars)2 | $0.62 | $0.38 | 63% |
| Interim dividend per share (pence) | 8.2 | 7.5 | 9% |
| Interim dividend per share (US cents) | 13.8 | 14.6 | (5%) |
| Loss ratio | 60.3% | 54.6% | |
| Expense ratio | 35.7% | 36.3% | |
| Combined ratio | 96.0% | 90.9% | |
| Net investment return for period | 2.9% | 0.9% | |
| Annualised return on average equity3 | 18.2% | 9.1% | |
| Annualised return on average net tangible assets3 | 24.7% | 13.3% | |
| 30 June 2009 | 31 Dec 2008 | %change | |
| Total assets | 11,985,541 | 9,659,651 | 24% |
| Investments and cash | 7,053,378 | 5,933,413 | 19% |
| Stockholders' equity | 3,006,268 | 2,469,235 | 22% |
| Unearned premiums | 2,153,984 | 1,536,203 | 40% |
| Book value per share (US dollars)2,3 | $6.90 | $6.61 | 4% |
| Book value per share (sterling)2,3 | £4.18 | £4.53 | (8%) |
| Net tangible book value per share (US dollars)2,3 | $5.09 | $4.63 | 10% |
| Net tangible book value per share (sterling)2,3 | £3.09 | £3.17 | (3%) |
| 1 | Net underwriting contribution is defined as net
premiums earned less losses and loss expenses and policy
acquisition costs |
| 2 | Prior periods adjusted for impact of Rights Issue |
| 3 | Returns on average equity and net tangible assets as well as book value and net tangible book value per share exclude preferred shares. Per-share amounts exclude treasury shares. |
Stephen Catlin, Chief Executive of Catlin Group Limited, said:
“Catlin performed strongly during the first half of 2009, producing record pre-tax profits and net income for the period as well as a 25 per cent return on net tangible assets. In the light of this performance, the Group has increased the interim dividend by 9 per cent.
“We are now benefiting from our investment in Catlin US and the international office network, which provided meaningful contributions to our success during the first half. In addition, we were assisted by a significant improvement in investment return during the period, which compensated for a higher than usual frequency of large single-risk losses.
“Christopher Stooke, who has been Catlin’s Chief Financial Officer and an Executive Director since 2003, will step down at the end of the month. I want to thank Chris for his dedication and his many contributions to Catlin and wish him success for the future. Benjamin Meuli, who was appointed as a Director on 30 June 2009, will succeed Chris as CFO.
"We look ahead with confidence. We believe that pricing for nearly all classes of business will continue to strengthen for the foreseeable future. Catlin is well positioned to grow – both in terms of premium volume and profitability – in this market environment.”- 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 consolidated 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 10am BST today at the Group’s 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.
- Rates of exchange at 30 June 2009 – balance sheet:
£1 = US$1.65 (31 December 2008:
£1 = US$1.46; 30 June 2008: £1 = US$1.98); income statement (average rate): £1 = US$1.50 (31 December 2008: £1 = US$1.85; 30 June 2008: 1.99). - Earnings per share are based on weighted average shares in
issue of 317 million during the six months ended 30 June 2009. Book
value per share is based on 350 million shares in issue at 30 June
2009. Earnings per share and book value per share exclude Treasury
Shares held in trust. Prior period amounts have been adjusted for
the impact of the Rights Issue concluded in March 2009.
- Detailed information regarding Catlin’s operations and financial results for the six months ended 30 June 2009 is attached, including unaudited consolidated financial statements.
- Catlin is the title sponsor of the Catlin Arctic Survey, a major scientific project whose aim is to determine, with a much greater degree of accuracy, when the floating Arctic sea ice could disappear as a result of climate change. More information regarding the Survey is available at www.catlinarcticsurvey.com.
See the full Interim Results in PDF format (137 KB)