Catlin swings to $231 million first-half profit

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Property and casualty insurer Catlin swung back to profit for the first six months of 2012, citing a favourable ratings environment.

The company generated $231 million in profit before tax for the six months ended June 30 2012 and a record net underwriting contribution of $443 million.

That compared to a net loss of $201 million in the first half of 2011, when the company was hit by heavy catastrophe claims.

“Catlin produced excellent financial results for the first six months of 2012, including a record underwriting contribution and strong profits before tax,” said Stephen Catlin, CEO of Catlin Group Limited. “Our business continues to grow, with the London/UK underwriting hub producing meaningful growth for the first time in five years along with a good performance from the rest of the business.

“The rating environment continues to be favourable, as average weighted premium rates across the portfolio increased by five percent during the first half of 2012. Rates for catastrophe-exposed business classes continue to increase, and we are seeing positive momentum for other classes, including US casualty business. Catlin’s focus on underwriting discipline and flexible capital structure puts us in a solid position to take advantage of opportunities as they arise in the second half of the year and beyond.”

The Catlin Group produced an 86 percent combined ratio and a 50 percent attritional loss ratio.

The company also recorded a six percent increase in interim dividend to 9.5 UK pence per share (14.7 US cents).

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