Catlin Group Limited, the international specialty property/casualty insurer and reinsurer, announces its financial results for the six months ended 30 June 2009 : 60% increase in profit before tax to a record $240m in the first half of 2009, compared to $150m in the first half of last year.
Financial Highlights :
- 60 per cent increase in profit before tax to record US$240 million (30 June 2008: US$150 million)
- 77 per cent increase in net income to common stockholders to record $196 million (30 June 2008: US$110 million)
- 18 per cent annualised return on average equity (30 June 2008: 9 per cent)
- 25 per cent annualised return on net tangible assets (30 June 2008: 13 per cent)
- 9 per cent increase in interim dividend to 8.2 pence (13.8 US cents) per share (30 June 2008: 7.5 pence; 14.6 US cents1)
- 14 per cent increase in gross premiums written to US$2.2 billion on constant currency basis; 7 per cent increase on a reported basis (30 June 2008: US$2.1 billion)
- 9 per cent increase in net premiums earned to US$1.3 billion on constant currency basis; 3 per cent increase on a reported basis (30 June 2008: US$1.3 billion)
- 96 per cent combined ratio on US GAAP basis (30 June 2008: 91 per cent)
- 2.9 per cent investment return for period (30 June 2008: 0.9 per cent)
- 10 per cent increase in dollar net tangible book value per share in first half to US$5.09 (31 December 2008: US$4.63)1
Operational Highlights
- Average weighted premium rate increase across risk portfolio of 6 per cent
- Growing profitable contribution from Catlin US, international offices
- Attritional loss ratio on target
- Embedded growth emerging as anticipated
- Proceeds from US$289 million capital raise already being utilised
- Brand awareness increased among brokers and clients via Catlin Arctic Survey
1 Prior periods adjusted for impact of 2 for 5 Rights Issue completed in March 2009
Stephen Catlin, Chief Executive of Catlin Group Limited, said:
“Catlin performed strongly during the first half of 2009, producing record pre-tax profits and net income for the period as well as a 25 per cent return on net tangible assets. In the light of this performance, the Group has increased the interim dividend by 9 per cent.
“We are now benefiting from our investment in Catlin US and the international office network, which provided meaningful contributions to our success during the first half. In addition, we were assisted by a significant improvement in investment return during the period, which compensated for a higher than usual frequency of large single-risk losses.
“Christopher Stooke, who has been Catlin’s Chief Financial Officer and an Executive Director since 2003, will step down at the end of the month. I want to thank Chris for his dedication and his many contributions to Catlin and wish him success for the future. Benjamin Meuli, who was appointed as a Director on 30 June 2009, will succeed Chris as CFO.
“We look ahead with confidence. We believe that pricing for nearly all classes of business will continue to strengthen for the foreseeable future. Catlin is well positioned to grow – both in terms of premium volume and profitability – in this market environment.”
