Catlin Group Announces Interim Results For Period Ended 30 June 2007
6 September 2007
HAMILTON, Bermuda - Catlin Group Limited ('CGL': London Stock Exchange), the international property and casualty insurer and reinsurer, announces its financial results for the six months ended 30 June 2007.
Highlights:
- Income before tax of US$190 million after acquisition effects;
net income of US$162 million
- Accelerating financial benefits from acquisition in second half
of 2007
- Group on track to meet 2007 financial expectations
- Gross premium written of US$2.0 billion; 29 per cent increase
on H1 2006 (combined Catlin ‘as reported’ and
Wellington on US GAAP basis)
- 41 per cent increase in unearned premiums during first half to
US$1.8 billion
- 34 per cent increase in stockholders’ equity during first
half to US$2.7 billion
- Integration of Wellington operations completed with virtually
no business loss as result of acquisition
- Operating and tax synergies resulting from acquisition greater
than expected, post-tax synergy expectation for 2008 increased to
at least US$100 million
- Interim dividend of 8.1 pence (16.4 US cents) per share (30
June 2006: 6.0 pence or 11.3 US cents)
- Further embedded growth benefits will be seen in
2008
- “I am very pleased with
the Catlin Group’s performance during the first half of 2007.
Our retention of business following the Wellington acquisition has
been excellent, and we have continued to build our business for the
future through the recruitment of new underwriting teams and the
continued development of Catlin US and our international offices.
“First-half profits were reduced by residual interests of Wellington’s former third-party capital providers and by integration costs. These effects will decline in future periods and the financial benefits of the transaction will grow. Catlin is on track to meet its financial targets for 2007. In 2008, we will benefit from further embedded growth arising from the acquisition as well as at least US$100 million in synergy savings.”
| US$000 |
For the six months ended 30
June | ||
|---|---|---|---|
|
30 June 2007 |
30 June 2006
combined1 |
30 June 2006 Catlin as reported | |
|
Gross premiums written |
1,997,507 |
1,552,904 |
903,145 |
|
Net premiums written |
1,445,671 |
1,235,915 |
765,993 |
|
Net premiums earned |
1,192,212 |
1,050,152 |
642,483 |
|
Income before income tax expense |
190,249 |
228,035 |
167,399 |
|
Net income |
161,720 |
186,918 |
147,310 |
|
Loss ratio |
54.7% |
52.8% |
49.3% |
|
Expense ratio |
37.5% |
35.9% |
35.4% |
|
Combined ratio |
92.2% |
88.7% |
84.7% |
|
Annualised investment return |
4.3% |
2.5% |
1.7% |
|
Effective tax rate |
15.0% |
18.0% |
12.0% |
|
Annualised return on average equity
2 |
15.7% |
22.0% |
29.1% |
|
Earnings per share (US dollars) |
0.65 |
- |
0.92 |
|
Interim dividend per share (pence) |
8.1 |
- |
6.0 |
|
Interim dividend per share (US cents) |
16.4 |
- |
11.3 |
|
30 June 2007 |
31 December 2006 |
30 June 2006 Catlin as reported | |
|
Total assets |
9,730,027 |
8,806,318 |
4,403,357 |
|
Investments and cash |
5,354,159 |
5,013,709 |
2,498,911 |
|
Stockholders’ equity |
2,702,581 |
2,018,280 |
1,091,214 |
|
Unearned premiums |
1,819,727 |
1,290,379 |
872,898 |
|
Book value per share (sterling) |
£4.16 |
£4.12 |
£3.60 |
|
Book value per share (US dollar) |
$8.35 |
$8.07 |
$6.67 |
1 Represents the aggregation of Catlin ‘as
reported’ and Wellington on a US GAAP basis
2 Excludes preferred shares
See also table on Page 3 of Interim Results Statement for an analysis of acquisition effects.
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:
- Catlin Group Limited, headquartered in Bermuda, is an
international specialist property/casualty insurer and reinsurer
writing more than 30 classes of business worldwide through four
underwriting platforms and an international network of offices.
Catlin shares are traded on the London Stock Exchange (ticker
symbol: CGL). More information about Catlin can be found at
www.catlin.com.
- Catlin’s four underwriting platforms are:
- The Catlin
Syndicate at Lloyd’s of London (Syndicate 2003),
which is a recognised leader of numerous classes of specialty
insurance and reinsurance. The Catlin Syndicate is the largest at
Lloyd’s in 2007 based on premium capacity of £1.25
billion.
- Catlin Bermuda
(Catlin Insurance Company Ltd.), which is a leading participant in
the Bermuda market, underwriting a diversified portfolio of
property treaty, casualty treaty, political risk and terrorism, and
structured risk coverages.
- Catlin UK
(Catlin Insurance Company (UK) Ltd.), which specialises in
underwriting commercial non-life insurance for UK clients through a
network of regional offices. It also writes other classes of
business written by the Catlin Syndicate.
- Catlin US, which encompasses Catlin’s operations based in the United States. Catlin US underwrites a wide variety of specialty property/casualty insurance and reinsurance products from a network of offices throughout the U.S. Catlin US includes Catlin Insurance Company Inc. and Catlin Specialty Insurance Company Inc.
- The Catlin
Syndicate at Lloyd’s of London (Syndicate 2003),
which is a recognised leader of numerous classes of specialty
insurance and reinsurance. The Catlin Syndicate is the largest at
Lloyd’s in 2007 based on premium capacity of £1.25
billion.
- Catlin’s international network of offices allows the
Group to diversify further its risk portfolio and to work more
closely with local policyholders and brokers. Besides its
offices in the UK, US and Bermuda, Catlin operates offices in
Canada, Australia, Singapore, Malaysia, Hong Kong, China, Guernsey,
Germany, Belgium, France, Spain, Switzerland and Austria.
- 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 2007 -- balance sheet:
£1=US$2.01 (30 June 2006: US$1.85); income statement:
£1=US$1.98 (30 June 2006: US$1.79).
- Detailed information regarding Catlin’s financial results
for the six months ended 30 June 2007, including unaudited
consolidated financial statements, is attached.
- Statements that the Wellington acquisition is expected to be earnings accretive do not constitute a profit forecast and should not be interpreted to mean that the earnings per share in 2007, or in any subsequent period, would necessarily match or be greater than those for the relevant preceding financial year.
See the full Interim Results in PDF format (292 Kb).