Profit up by 27 percent for Catlin
Catlin strengthened its pre-tax profit by 27 percent and its net income by 29 percent during a strong year for the multi-class re/insurer, particularly in its international segment.
Pre-tax profit at Catlin rose to $432 million for 2013, while its combined ratio improved to 85.6 percent for the year. While Catlin was able to grow its premium written in spite of headwinds by 7 percent, to $5.3 billion.
Growth was particularly marked at Catlin’s non-London underwriting hubs, which contributed 48 percent of the company’s underwriting, up from 33 percent in 2013. This realignment resulted in a 16 percent increase in non-London premiums written.
Commenting on results, John Barton, chairman of Catlin Group, said: “Catlin has produced strong financial results for 2013 as profit before tax increased by 27 percent to $432 million. The Group’s underwriting operations performed well, with net underwriting contribution amounting to slightly more than $1 billion, an all-time record.
“Whilst it is now clear that market conditions are becoming increasingly competitive for many classes of business underwritten by Catlin, margins are still strong. I believe that Catlin has the strategy, the infrastructure and most importantly the people in place to continue to produce good results for shareholders.”
Stephen Catlin, CEO of Catlin Group added: “Our non-London underwriting hubs produced net underwriting contribution of $480 million, an 83 percent increase. These hubs accounted for 48 percent of the Group’s net underwriting contribution, compared with 33 percent in 2012.
"I believe there are still good opportunities for Catlin, even in a softening market. Our diversified portfolio – by region and by product – allows us to see business that many of our competitors do not have the opportunity to write. Using our tested technical skills, we can select the business that we believe is most profitable. It also must be remembered that margins for most classes of business are still strong and that rates for some classes of business are still rising.”