HAMILTON, Bermuda – Catlin Group Limited ('CGL': London Stock Exchange), the international specialty property/casualty insurer and reinsurer, announces its financial results for the year ended 31 December 2011.
- US$71 million in profit before tax (31 December 2010: US$406 million)
- 50 per cent attritional loss ratio (31 December 2010: 52 per cent)
- US$961 million in gross losses from natural catastrophes; US$678 million in net losses from natural catastrophes
- Catastrophe aggregate protection responded as anticipated to catastrophe losses during second half of 2011
- 11 per cent increase in gross premiums written (31 December 2010: 10 per cent)
- 24 per cent increase in gross premiums written by non-London/UK hubs
- 3.1 per cent total investment return (31 December 2010: 2.7 per cent)
- US$103 million release from prior year reserves, equal to 2 per cent of opening reserves
(31 December 2010: US$144 million, equal to 3 per cent of opening reserves)
- 5 per cent increase in average weighted premium rates for 1 January 2012 renewals (9 per cent increase for catastrophe-exposed classes; 1 per cent increase for non-catastrophe classes)
- 17 per cent increase in US Property Treaty Reinsurance rates; 12 per cent increase in International Property Treaty rates
- 6 per cent increase in annual dividend to 28.0 UK pence per share (44.9 US cents) (31 December 2010: 26.5 UK pence; 42.5 US cents)
|Gross premiums written
|Net premiums written
|Net premiums earned
|Net underwriting contribution1
|Total investment return
|Net income before income taxes
|Net income to common stockholders
|Earnings per share (US dollars)
|Total dividend per share (pence)
|Total dividend per share (US cents)
|Total investment return
|Return on net tangible assets3
|Return on equity3
||31 Dec 2011
||31 Dec 2010
|Investments and cash
|Net tangible assets per share (sterling)4
|Net tangible assets per share (US dollars)4
|Book value per share (sterling)4
|Book value per share (US dollars)4
1 Net underwriting contribution is defined as net premiums earned less losses and loss expenses and policy acquisition costs.
2 The expense ratio and the combined ratio include policy acquisition costs and most administrative expenses. These ratios exclude profit-related bonuses, share option scheme costs and certain other Group corporate costs.
3 Returns on net tangible assets and equity exclude preferred shares and are calculated by reference to opening balances.
4 Book value and net tangible book value per share exclude preferred shares and treasury shares.
Sir Graham Hearne, Chairman of Catlin Group Limited, said:
"2011 was a tough year for the insurance industry and for Catlin due to the extraordinary series of natural catastrophes. However, Catlin performed well. Whilst the Group sustained nearly US$1 billion in gross losses from natural catastrophe claims, Catlin's profit before tax amounted to US$71 million.
"Catlin has not only grown in size, but it has significantly increased value for its shareholders since its initial public offering, despite the tough economic conditions during much of that period. Since 31 March 2004, Catlin has produced total shareholder return amounting to 93 per cent, compared with average total shareholder return of 71 per cent for FTSE 350 companies during that same period."
Stephen Catlin, Chief Executive of Catlin Group Limited, said:
"Notwithstanding the exceptional series of natural catastrophes in 2011, Catlin continued to build its global business. Gross premiums written increased by 11 per cent, and premium volume written by our non-London/UK underwriting hubs rose by 24 per cent. Our Group-wide attritional loss ratio was 50 per cent, the lowest in five years.
"Our structure is designed to perform in all phases of the market cycle. Market conditions are improving, especially for catastrophe-exposed business classes for which rates increased by 9 per cent at 1 January 2012 renewals. Whilst it may be too early to declare that the market has turned, nearly all signals are encouraging.
"I believe that Catlin today is in a strong position. We have a structure that is capable of substantial, profitable growth at a time when excellent opportunities are arising."
- ends -
For more information contact:
Head of Communications, London
|+44 (0)20 7458 5710
+44 (0)7958 767 738
|Liz Morley, Maitland
|+44 (0)20 7379 5151
Head of Investor Relations, London
|+44 (0)20 7458 5726
+44 (0)7710 314 365
Notes to editors:
- Catlin Group Limited, headquartered in Bermuda, is an international specialist property/ casualty insurer and reinsurer that underwrites worldwide through six underwriting hubs. 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 consolidated 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.
- Catlin management will make a presentation to investment analysts at 10am GMT today at the Group's London office. The presentation will be broadcast live on the Group's website (www.catlin.com). The webcast will also be available on demand later today.
- Rates of exchange at 31 December 2011 – balance sheet: £1= US$1.55 (2010: £1 = US$1.54); income statement (average rate): £1 = US$1.60 (2010: £1 = US$1.55).
- Earnings per share are based on weighted average shares in issue of 344 million during 2011. Book value per share is based on 345 million shares in issue at 31 December 2011. Both calculations exclude Treasury Shares held in trust.
- Detailed information regarding Catlin's operations and financial results for the year ended 31 December 2011 is attached, including statements from the Chairman and Chief Executive along with underwriting, financial and investment performance commentary.
See Financial Results For Year Ended 31 December 2011 in PDF format (623 KB)