Catlin Group Limited announces Interim Results for period ended 30 June 2006
8 September 2006
HAMILTON, Bermuda - Catlin Group Limited ('CGL': London Stock Exchange), the international property and casualty insurer and reinsurer, announces record net income for the six months ended 30 June 2006.
Highlights:
- Net income increased to record US$147.3 million (30 June 2005: US$111.2 million)
- Excluding foreign exchange effects, profit before tax decreased 5.9 per cent to US$139.1 million (30 June 2005: US$147.9 million)
- Annualised return on average equity was 29.1 per cent (30 June 2005: 22.0 per cent)
- Book value per share decreased 1.8 per cent to US$6.67 (30 June 2005: US$6.79); book value per share increased 11.7 per cent from US$5.97 at 31 December 2005; in sterling terms book value per share increased 3.7 per cent to £3.60 (31 December 2005: £3.47)
- Gross premiums written increased 15.5 per cent to US$903.1 million (30 June 2005: US$781.7 million)
- Net premiums earned rose 2.5 per cent to US$642.5 million (30 June 2005: US$627.1 million)
- Combined ratio was 84.7 per cent (30 June 2005: 82.3 per cent)
- Earnings per share of 92 US cents (30 June 2005: 72 US cents)
- Interim dividend increased to 6.0 pence (11.3 US cents) per share (30 June 2005: 5.4 pence; 9.9 US cents)
- Weighted average rate increase of 37 per cent for catastrophe exposed classes of business during period ended 30 June 2006; increase of 12 per cent across all classes
- Aggregate catastrophe exposure reduced by approximately one-third
- Catlin US management team in place; infrastructure being completed; underwriting teams hired; new offices opened in Atlanta and New York
- "Catlin’s performance during the first half of 2006 was strong thanks to our culture of disciplined underwriting. We had record premium volume and net income, while at the same time we have reduced our exposure to natural catastrophe risk by approximately one-third compared with a year ago and continued to diversify our risk portfolio. "We have also made great strides in building our business for the future. We have established strong management in our recently established US operating platform, and we have also opened a number of offices in North America and Asia. We are encouraged by the opportunities that this expansion creates."
| US$000 except where indicated |
For the six months ended 30 June | ||
|---|---|---|---|
|
2006 |
2005 |
% change | |
|
Gross premiums written |
903,145 |
781,739 |
15.5% |
|
Net premiums written |
765,993 |
658,695 |
16.3% |
|
Net premiums earned |
642,483 |
627,086 |
2.5% |
|
Income before income tax expense |
167,399 |
126,335 |
32.5% |
|
Net income |
147,310 |
111,175 |
32.5% |
|
Earnings per share (US$) |
0.92 |
0.72 |
27.8% |
|
Interim dividend per share (pence) |
6.0 |
5.4 |
11.1% |
|
Interim dividend per share (US cents) |
11.3 |
9.9 |
14.1% |
|
Book value per share (US$) |
6.67 |
6.79 |
(1.8%) |
|
Effective tax rate |
12.0% |
12.0% |
- |
|
Combined ratio |
84.7% |
82.3% |
- |
|
Annualised return on average equity |
29.1% |
22.0% |
- |
For more information contact:
| Media Relations: | |
| James Burcke, | Tel: +44 (0)20 7458 5710 |
| Head of Communications, London | Mobile: +44 (0)7958 767 738 |
| E-mail: james.burcke@catlin.com | |
| Liz Morley, Maitland | Tel: +44 (0)20 7379 5151 |
| E-mail: emorley@maitland.co.uk | |
| Investor Relations: | |
| William Spurgin, | Tel: +44 (0)20 7458 5726 |
| Head of Investor Relations, London | 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 $1.4 billion in 2005. Catlin shares are traded on the London Stock Exchange (ticker symbol: CGL).
- Catlin management will make a presentation to investment analysts at 10am BST today at its London office (3 Minster Court, Mincing Lane, London EC3R 7DD). The presentation will be broadcast live on the Group’s website (www.catlin.com). The webcast will also be available on the website following the presentation.
- Catlin operates four underwriting platforms:
- The Catlin Syndicate at Lloyd’s of London (Syndicate 2003), which is one of the largest syndicates at Lloyd’s based on 2006 premium capacity of £500 million. It is a recognised leader of numerous classes of specialty insurance and reinsurance.
- Catlin Bermuda (Catlin Insurance Company Ltd.), which underwrites property treaty and casualty treaty reinsurance and property and casualty insurance.
- Catlin UK (Catlin Insurance Company (UK) Ltd.), which specialises in underwriting commercial non-life insurance for UK clients. It also writes other classes of business written by the Catlin Syndicate.
- Catlin US, which encompasses all of Catlin’s operations in the United States. Catlin US includes Catlin Insurance Company Inc., an admitted US insurer, along with underwriting offices in several US cities.
The Catlin Syndicate, Catlin Bermuda and Catlin UK have financial strength ratings of ‘A’ (Excellent) from A.M. Best Company. Catlin Bermuda and Catlin UK have insurance financial strength ratings of ‘A-‘ (Strong) from Standard & Poor’s; the Catlin Syndicate has a Lloyd’s Syndicate Assessment of ‘4-‘ (Low Dependency) from Standard & Poor’s.
- The Catlin Syndicate at Lloyd’s of London (Syndicate 2003), which is one of the largest syndicates at Lloyd’s based on 2006 premium capacity of £500 million. It is a recognised leader of numerous classes of specialty insurance and reinsurance.
- Catlin also operates offices worldwide which allow Catlin underwriters to work closely with local policyholders and brokers. The offices are located in the United States (Atlanta, Houston, New Orleans, New York and San Francisco), Canada (Toronto and Calgary), Australia (Sydney), Singapore, Malaysia (Kuala Lumpur), Hong Kong, Germany (Cologne), Belgium (Antwerp) and Guernsey. Catlin UK has regional offices in Glasgow, Leeds, Derby, Birmingham, Tonbridge and Watford.
- Catlin’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (‘US GAAP’). The Group reports its results in US dollars.
- Rates of exchange at 30 June 2006 - balance sheet: £1=US$1.85 (30 June 2005: US$1.79); income statement: £1=US$1.79 (30 June 2005: US$1.88).
- Detailed information regarding Catlin’s financial results for the six months ended 30 June 2006 including unaudited consolidated financial statements, is attached.
- More information about Catlin can be found on the Group’s website: www.catlin.com.
See the full Interim Results in PDF format (116 Kb).