Press Releases
Catlin Group Limited announces Interim Results for the six months ended 30 June 2004
HAMILTON, Bermuda - Catlin Group Limited (‘CGL’: London Stock Exchange), the international property and casualty insurer and reinsurer, announces record interim premium income and net income amid continuing positive market conditions.
Financial highlights:
- Net income increased to US$95.8 million (30 June 2003: US$50.7 million)
- Annualised weighted return on average equity amounted to 23.3% (30 June 2003: 19.0%)
- Gross premiums written rose to US$935.3 million (30 June 2003: US$747.0 million)
- Net premiums earned increased to US$548.2 million (30 June 2003: US$356.3 million)
- Combined ratio improved to 81.8% (30 June 2003: 87.8%)
- Pro forma net income per share of 62 cents (30 June 2003: 41 cents)
- Interim dividend of 7.8 cents (4.3 pence) per share
- Net asset value of US$5.93 (£3.28) per share as at 30 June 2004
|
For the six months ended 30 June (US$000 except where indicated) | |||
|---|---|---|---|
|
2004 |
2003 |
% change | |
|
Gross premiums written |
935,300 |
747,004 |
25% |
|
Net premiums written |
795,342 |
657,462 |
21% |
|
Net premiums earned |
548,230 |
356,305 |
54% |
|
Total revenues |
565,220 |
376,020 |
50% |
|
Income before income taxes |
112,627 |
59,605 |
89% |
|
Net income |
95,846 |
50,726 |
89% |
|
Pro forma net income per share (cents) |
62 |
41 |
51% |
|
Dividends per share (pence) |
4.3 |
- |
- |
|
Unearned premiums |
914,015 |
710,048 |
29% |
|
Effective tax rate |
14.9% |
14.9% |
- |
|
Combined ratio |
81.8% |
87.8% |
|
|
Annualised weighted return on average equity |
23.3% |
19.0% |
|
Operational highlights:
- Successful start-up of Catlin UK, the Group’s third operating platform
- Strong growth of Corporate Direct and Corporate Reinsurance business segments (composed of Catlin Bermuda and Catlin UK), which combined accounted for 27% of consolidated gross premiums written
- Successful start-up of offices in Germany and Australia
- Development of online quotation engine allowing for single data entry
- Hurricanes Charley and Frances not expected to have significant impact on Group’s financial returns for full year
Commenting on the Group’s interim results, Chief Executive Stephen Catlin said:
- “We are pleased to announce record premium income and net income in our first results statement as a listed company. All four of the Group’s business segments have performed well in the first six months of 2004. We are particularly pleased with the rapid development of Catlin UK and Catlin Bermuda.
- "Premium rates increased by a weighted average of 2% during the first half of 2004, with much of this increase pertaining to business written in the early months of the year. Currently, we anticipate rates in 2005 will continue to offer the prospect of attractive returns.
- ”These interim results give us confidence that the Group will generate a superior return on equity for the full year. Whilst the impact of Hurricane Ivan is still uncertain, we expect that the second half of 2004 will continue to deliver strong profitability for Catlin.”
This summary should be read in conjunction with the detailed results announcement which follows.
- ends -
For more information contact:
| Media Relations: | |
| James Burcke, Head of Communications | |
| Tel: | +44 (0)20 7458 5710 |
| Mobile: | +44 (0)7958 767 738 |
| E-mail: | james.burcke@catlin.com |
| Liz Morley, Gavin Anderson & Company | |
| Tel: | +44 (0)20 7554 1400 |
| E-mail: | lmorley@gavinanderson.co.uk |
| Investor Relations: | |
| William Spurgin, Head of Investor Relations | |
| Tel: | +44 (0)20 7458 5726 |
| Mobile: | +44 (0)7710 314 365 |
| E-mail: | william.spurgin@catlin.com |
Notes to editors:
- The Catlin Group, headquartered in Bermuda, is a publicly listed, property/casualty insurer and reinsurer writing more than 30 classes of business worldwide. Catlin wrote gross premiums of $1.2 billion in 2003.
- Attached are Catlin Group Limited’s interim results statement and consolidated financial statements for the first six months of 2004. Catlin’s 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.
- Rate of exchange at 30 June 2004: £1 = US$1.81 (balance sheet); £1 = US$1.82 (income statement).
- The loss ratio is calculated as losses and loss expenses divided by net premiums earned. The expense ratio is calculated as total expenses, less Group financing costs and amortisation expense, divided by net premiums earned. The combined ratio is the aggregate of the loss ratio and expense ratio.
See the full Interim Results in PDF format (462 Kb).