Press Releases
Preliminary Results for Year Ended 31 December 2009
| 11 February 2010 | Release 2010-2 |
HAMILTON, Bermuda – Catlin Group Limited (‘CGL’: London Stock Exchange), the international specialty property/casualty insurer and reinsurer, announces its financial results for the year ended 31 December 2009.
Financial Highlights
- Record profit before tax of US$603 million (2008: -US$13 million)
- 33% return on net tangible assets (2008: -3%)
- 24% return on equity (2008: -2%)
- 27% increase in net tangible assets per share to US$5.90 (2008:
US$4.63);
15% increase in sterling net tangible assets per share 1 - 8% increase in annual dividend to 25 pence (40.0 US cents) per share (2008: 23.2 pence; 37.9 US cents) 1
- 12% increase in gross premiums written to US$3.7 billion on
constant currency basis;
8% increase on a reported basis (2008: US$3.4 billion) - 17% increase in net premiums earned to US$2.9 billion on
constant currency basis;
12% increase on a reported basis (2008: US$2.6 billion) - 89% combined ratio (2008: 95%)
- 5.9% investment return for period (2008: -1.4%)
- 8.3% effective tax rate
Operational Highlights
- Non-London underwriting hubs produced 37% of gross premiums written, 39% of total underwriting contribution
- 6% increase in average weighted premium rates across all classes during 2009
- Loss ratio decreased to 58% (2008: 63%); attritional loss ratio stable
- 35% increase in gross premiums written in January 2010 by non-London underwriting hubs (on constant currency basis)
- Average weighted premium rates increased by 1% across portfolio during January 2010 renewals
- Claims service rated best in London market by independent survey
1 Prior period per share amounts adjusted for the impact of the 2 for 5 Rights Issue completed in March 2009.
| US$m | 2009 | 2008 | |
|---|---|---|---|
| Gross premiums written | 3,715 | 3,437 | |
| Net premiums written | 3,168 | 2,611 | |
| Net premiums earned | 2,918 | 2,596 | |
| Net underwriting contribution1 | 651 | 454 | |
| Total investment return | 419 | (85) | |
| Net income/(loss) before income taxes | 603 | (13) | |
| Net income/(loss) to common stockholders | 509 | (47) | |
| Earnings per share (US dollars)2 | 1.52 | (0.16) | |
| Total dividend per share (pence)2 | 25.0 | 23.2 | |
| Total dividend per share (US cents)2 | 40.0 | 37.9 | |
| Loss ratio3 | 57.6% | 62.9% | |
| Expense ratio3 | 31.5% | 32.0% | |
| Combined ratio3 | 89.1% | 94.9% | |
| Investment return | 5.9% | (1.4%) | |
| Return on net tangible assets4 | 33.2% | (2.8%) | |
| Return on equity4 | 24.3% | (1.9%) | |
| 31 December 2009 |
31 December 2008 | % change | |
| Total assets | 11,682 | 9,659 | 21% |
| Investments and cash | 7,693 | 5,933 | 30% |
| Stockholders’ equity | 3,278 | 2,469 | 33% |
| Unearned premiums | 1,724 | 1,536 | 12% |
| Book value per share (US dollars)2.5 | $7.68 | $6.61 | 16% |
| Book value per share (sterling)2.5 | £4.74 | £4.53 | 5% |
| Net tangible book value per share (US dollars)2.5 | $5.90 | $4.63 | 27% |
| Net tangible book value per share (sterling)2.5 | £3.64 | £3.17 | 15% |
1 Net underwriting contribution is defined as net
premiums earned less losses and loss expenses and policy
acquisition costs.
2 Prior period per share amounts adjusted for the impact
of the 2 for 5 Rights Issue completed in March 2009.
3 The expense ratio and the combined ratio include
policy acquisition costs and most administrative expenses. These
ratios now exclude profit-related bonuses, share option scheme
costs and certain other Group corporate costs; these costs had
previously been included in these ratios.
4 Returns on net tangible assets and equity exclude
preferred shares and are calculated by reference to opening
balances (adjusted for capital issued during the year).
5 Book value and net tangible book value per share
exclude preferred shares and treasury shares.
Note: A table of rebased ratios and per-share amounts is included
in the attachments at the end of the Financial Review.
Sir Graham Hearne, Chairman of Catlin Group Limited, said:
“I am pleased to report that Catlin has produced excellent financial results for 2009, including record profits, a 33 per cent return on net tangible assets and a 24 per cent return on equity. Net tangible assets per share increased by 27 per cent and book value per share increased by 16 per cent.
“As Catlin celebrates its 25th anniversary, I believe that the Group is in a strong position to provide further value for its shareholders.”
Stephen Catlin, Chief Executive of Catlin Group Limited, said:
“Twenty-five years after establishing the Group and ten years after we set up our first office outside London, Catlin has achieved a major milestone: Our non-London underwriting hubs in 2009 produced nearly 40 per cent of our underwriting contribution. We expect the value of our global distribution system to increase in terms of both premium volume and underwriting profitability.
“I look forward to the Group’s continuing success as Catlin enters its second 25 years. The current market environment is good, with attractive pricing levels for most business classes, although the investment environment remains challenging. Absent extreme events, we foresee steady increases in our underwriting performance as our international underwriting hubs continue to mature.”
- ends -
For more information contact:
Media Relations: |
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James Burcke, |
Tel: |
+44 (0)20 7458 5710 |
|
Liz Morley, Maitland |
Tel: |
+44 (0)20 7379 5151 |
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Investor Relations: |
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William Spurgin, |
Tel: |
+44 (0)20 7458 5726 |
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 six
underwriting hubs. 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 GMT 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 31 December 2009 – balance sheet:
£1 = US$1.62 (2008: £1 = US$1.46); income statement
(average rate): £1 = US$1.56 (2008: £1 =
US$1.85).
- Earnings per share are based on weighted average shares in
issue of 334 million during 2009. Book value per share is based on
350 million shares in issue at 31 December 2009. Both calculations
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 year ended 31 December 2009 is attached,
including statements from the Chairman and Chief Executive along
with underwriting, financial and investment information.
- Catlin is the title sponsor of the Catlin Arctic Survey, an ongoing scientific project in the Arctic whose aim is to produce scientific data that scientists can use to predict the effects of climate change and other environmental changes. More information regarding the Survey is available at www.catlinarcticsurvey.com.
See the full Preliminary Results in PDF format (296 Kb).
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