Press Releases

Catlin Reviews Loss Estimates From Hurricanes Katrina and Rita

HAMILTON, Bermuda - Catlin Group Limited (‘CGL’: London Stock Exchange), the international specialist property and casualty insurer and reinsurer, has completed its initial review of loss estimates from Hurricane Rita and has reviewed its loss estimates from Hurricane Katrina.

Catlin estimates that losses from Hurricane Rita will be of the order of US$90 million gross of reinsurance and US$60 million on a net basis. This estimate is subject to considerable uncertainty and could be revised as further information is received by the Group.  Catlin has significant levels of reinsurance protection remaining should the Group receive additional claims arising from Hurricane Rita.

Catlin is not revising its 12 September 2005 estimate that losses arising from Hurricane Katrina would be of the order of US$275 million gross of reinsurance and US$125 million on a net basis.  This estimate, which is still subject to significant uncertainty, is consistent with an industry-wide loss of approximately US$40 billion. 

Based on these estimates, the combined losses to Catlin from Hurricanes Katrina and Rita will be of the order of US$365 million gross of reinsurance and US$185 million on a net basis.

Stephen Catlin, chief executive of Catlin Group Limited, said:

“Hurricane Katrina represents the largest insured loss in history, and Hurricane Rita is a major catastrophe in its own right.  In the light of these losses, we are already seeing significant rate increases for numerous classes of insurance and reinsurance, particularly those affected by the hurricanes.

“Despite the losses from the hurricanes, Catlin is in an excellent position to take advantage of the significant underwriting opportunities that will arise over the coming months.”

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For more information:

Media Relations:    
James Burcke,
Head of Communications,
London

Tel:
Mobile:
E-Mail:

 +44 (0)20 7458 5710
+44 (0)7958 767 738
james.burcke@catlin.com 
Liz Morley,
The Maitland Consultancy,
London

 Tel:
E-mail:		 +44 (0)20 7379 5151
emorley@maitland.co.uk
Investor Relations:    
William Spurgin,
Head of Investor Relations,
London

Tel:
Mobile:
E-mail:

 +44 (0)20 7458 5726
+44 (0)7710 314 365
william.spurgin@catlin.com


Notes:

1.   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 US$1.43 billion and reported record net income of US$154.1 million in 2004.  Catlin shares are traded on the London Stock Exchange (ticker symbol: ‘CGL’).
2.  

The Catlin Group currently operates three underwriting platforms:

  • The Catlin Syndicate at Lloyd’s of London (Syndicate 2003). The Catlin Syndicate is the eighth largest syndicate at Lloyd’s based on 2005 premium capacity of Ł500 million. It is a recognised leader of numerous classes of specialty insurance and reinsurance.  Over the past 20 years, the Catlin Syndicate and its predecessors have consistently outperformed the Lloyd’s market as a whole.

  • Catlin Bermuda (Catlin Insurance Company Ltd.).  Catlin Bermuda underwrites property treaty and casualty treaty reinsurance and property and casualty insurance for US risks on a surplus lines basis.

  • Catlin UK (Catlin Insurance Company (UK) Ltd.).  Catlin UK specialises in writing commercial property, general liability, professional indemnity, directors' and officers' liability and commercial crime insurance for UK clients.  It also writes other classes of business written by the Catlin Syndicate.

All three Catlin underwriting platforms have a financial strength rating of ‘A’ (Excellent) from A.M. Best Company.

In addition, Catlin announced in September 2005 that it had reached an agreement to purchase a shell insurance company which is an admitted insurer in 27 US states. Subject to completion of the acquisition and regulatory approval, this company will be renamed Catlin Insurance Company Inc. and become the Group’s fourth underwriting platform, writing property/casualty coverage  for US commercial clients that require coverage written on an admitted basis.

The Catlin Group also has established offices in the US, UK, Guernsey, Canada, Germany, Belgium, Singapore, Malaysia and Australia.  These offices, which underwrite on behalf of Catlin’s underwriting platforms, allow Catlin to work more closely with local clients and their brokers.

3.   For more information about Catlin, please see the Group's website at www.catlin.com.