Catlin Annual Report - Performing well in a demanding market
Catlin’s financial results for the year ended 31 December 2011 show that the Group has continued to perform well, despite demanding trading conditions. Catlin returned to profit in the second half of the year, increased gross written premiums by over 10 per cent and saw an especially strong performance from hubs outside the London/UK markets. Chief Executive Stephen Catlin says that Catlin is well placed to take advantage of opportunities emerging during the year ahead.
Catlin Group Chairman, Sir Grahame Hearn said that 2011 was a tough year for both the insurance industry and Catlin because of the extraordinary series of natural catastrophes. "However, Catlin performed well," he said. "Whilst the Group sustained nearly $1 billion in gross losses from natural catastrophe claims, Catlin’s profit before tax amounted to $71 million.
"Catlin has not only grown in size, but has significantly increased value for its shareholders since its initial public offering, despite 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 shareholder return of 71 per cent for FTSE 350 companies during that same period."
Catlin’s losses of $201 million for the first half of the year reversed to a $71 million net profit at year end, thanks to a good second half and an especially strong fourth quarter. Catlin has continued to build its global business, with gross premiums written up 11 per cent year on year. Premium written by the Group’s non London/UK underwriting hubs rose by almost a quarter. At 50 per cent, the Group wide attritional loss rate was the lowest for five years.
"Our structure is designed to perform in all phases of the market cycle," says Chief Executive, Stephen Catlin. "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."
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