Press Releases
Catlin Group Limited announces preliminary results to the year ended 31 December 2004
HAMILTON, Bermuda - Catlin Group Limited ('CGL': London Stock Exchange), the international property and casualty insurer and reinsurer, announces record premium income and net income for the year ended 31 December 2004.
Financial highlights:- Net income increased to record US$154.1 million (2003: US$127.0 million) despite impact of exceptional hurricane losses
- Return on average equity was 19.1% (2003: 22.1%)
- Book value grew by 21.4% to US$6.30 (£3.28) per share (2003: US$5.19; £2.70)
- Gross premiums written rose to US$1.43 billion (2003: US$1.20 billion)
- Net premiums earned increased to US$1.16 billion (2003: US$844.9 million)
- Combined ratio was 89.4% (2003: 86.0%); exceptional hurricane losses added 6.5 percentage points to combined ratio
- Proposed final dividend is 15.6 US cents (8.1 pence) per share; proposed total dividend of 23.5 US cents (12.4 pence) per share represents 23.5% of net income
| US$000 (except as indicated) | 2004 | 2003 | % change |
|---|---|---|---|
| Gross premiums written | 1,433,836 | 1,198,214 | 20% |
| Net premiums written | 1,246,505 | 1,085,134 | 15% |
| Net premiums earned | 1,161,110 | 844,947 | 37% |
| Income before income tax expense | 173,942 | 146,350 | 19% |
| Net income | 154,056 | 127,013 | 21% |
| Pro forma net income per share (US$) | 1.08 | 1.03 | 5% |
| Total dividends per share (cents) | 23.5 | - | - |
| Book value per share (US$) | 6.30 | 5.19 | 21% |
| Unearned premiums | 722,891 | 612,325 | 18% |
| Effective tax rate | 11.4% | 13.2% | - |
| Combined ratio | 89.4% | 86.0% | - |
| Return on average equity | 19.1% | 22.1% | - |
Operational highlights:
- Initial public offering of common shares raised $182.6 million, net of expenses
- Strong growth of Corporate Direct and Corporate Reinsurance business segments; 31% of gross premiums written by these segments (2003: 22%)
- Positive contribution to profits from all business segments
- Successful establishment of Catlin UK, the Group's third operating platform; US$200 million in gross premiums written in first year
- 1% increase in year on year weighted average rates reflects Group's commitment to disciplined underwriting
- Unearned premiums of US$722.9 million written at favourable historic rates
- Rate reductions in January 2005 renewal season limited to 1%
- Investment income to benefit from cash and investments of almost US$2 billion at 1 January 2005 (1 January 2004: US$1.2 billion)
- Existing book of business expected to be relatively stable
- Continued focus on generating superior return on equity through:
- Emphasis on underwriting profitability
- Value enhancing opportunities
- Active management of capital
- Emphasis on underwriting profitability
Commenting on the Group's preliminary results, Sir Graham Hearne, Chairman of Catlin Group Limited, said:
- "I am proud to announce that Catlin has produced record profits during its first year as a publicly listed company, despite the exceptional hurricane losses during the second half of 2004. The Group's excellent results reflect Catlin's focus on serving clients, its commitment to underwriting profitability and the advantages of its multi-platform structure. The total dividend of 23.5 cents amounts to 23.5 per cent of net income for 2004 and reflects our confidence in the current performance of the business and in its future prospects."
Chief Executive Stephen Catlin said:
- "I am very pleased with the Group's 2004 performance. Our 19.1 per cent return on average equity is an outstanding achievement, considering that the impact of the exceptional level of hurricane losses reduced our RoE by 7.2 percentage points.
- "The 2005 renewal season has been satisfactory with only a marginal fall in average premium rates. The Group will maintain underwriting discipline and its focus on opportunities which enhance value. I believe we are well-positioned to deliver superior returns for shareholders in 2005."
This summary should be read in conjunction with the detailed announcement which follows.
- ends -
| 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, The Maitland Consultancy | Tel: | +44 (0)20 7379 5151 |
| E-mail: | emorley@gavinanderson.co.uk | |
| 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 an international specialist property/casualty insurer and reinsurer writing more than 30 classes of business worldwide. Catlin wrote gross premiums of $1.43 billion in 2004. Catlin shares are traded on the London Stock Exchange (ticker symbol: CGL).
- Catlin management will make a presentation to investment analysts at 9.00am GMT today at its London office. The presentation will be broadcast live on the Group's website (www.catlin.com). The webcast will be also be available on the website following the presentation.
- 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.
- Pro forma net income per share has been calculated based on weighted average pro forma shares in issue of 142.8 million for 2004 and 122.9 million for 2003.
- Rate of exchange at 31 December 2004: £1 = US$1.92 (balance sheet); £1 = US$1.83 (income statement); at 9 March 2005 £1 = US$1.93.
- Detailed information regarding Catlin's financial results for the year ended 31 December 2004 follow, including statements from the Chairman, Chief Executive and Chief Financial Officer and condensed unaudited financial statements.
- Syndicate 2003 at Lloyd's (the Catlin Syndicate) and Catlin Insurance Company Ltd. (Catlin Bermuda and Catlin UK) have been assigned financial strength ratings of 'A' (Excellent) by A.M. Best Company.
See the full Preliminary Results in PDF format (467 Kb).