18 August 2014 Insurance

Amlin grows reinsurance but profits dip

Amlin posted a steady set of results for the first half of 2014, with its reinsurance book growing despite challenging market conditions. Its profits dipped, however, largely because of changes in foreign exchange rates.

The company made a pre-tax profit of £148.5 million compared with £161.4 million a year earlier. The drop was mainly due to a £24.6 million adverse foreign exchange swing, the company said.

Its gross written premiums increased by 2.8 percent to $1.8 billion for the period. Within this growth, however, Amlin Re Europe enjoyed growth of 26.3 percent and Charles Philipps, chief executive, said that the overall reinsurance book grew by 6.9 percent despite challenging market conditions, which resulted in rate reductions of 10.3 percent. He also noted that this was lower than the market as a whole, however.

The company’s combined ratio for the period was 87 percent compared with 85 percent in the same period a year earlier.

The company also noted that changes to its own reinsurance buying had resulted in a positive impact for the company. This also resulted in an increase in its net written premiums, which increased by 7.3 percent to £1.6 billion.

Its return on equity for the period was 8.1 percent compared with 9.3 percent a year earlier.

Chief executive Philipps said: “Amlin continues to generate good returns despite a more competitive trading environment, demonstrating the strength of our franchise and the benefit of a well-diversified portfolio. While remaining focused on underwriting discipline, we continue to identify opportunities for profitable growth.  With the benefit of previous premium growth and significant savings on outwards reinsurance, Amlin remains well positioned in current market conditions.”

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