Amlin, Plc, a leading Lloyd’s insurer, announced record results for the period ending June 30, 2005 with net profits up 56 percent to 134.1 million pounds ($247 million), more than it made for all of last year. The company also said that its provisional loss estimates for Hurricane Katrina would be around $110 million. Amlin indicated that despite the loss it still anticipates a “good full year return on equity.”
Other highlights in the company’s report included the following:
— First half combined ratio of 69 percent (H1 2004: 72 percent)
— Underwriting contribution up 38 percent to 116.6 million pounds [$215 million] (H1 2004: 84.4 million pounds [$155.5 million])
— Investment return up 185 percent to 41.3 million pounds [$76 million](H1 2004: 14.5 million pounds [$26.7 million])
— Half-year earnings per share up 60 percent to 24.5 pence [45.14 cents]
— Interim dividend up 33 percent to 4 pence [7.37 cents] per share
— 25 million pound [$46 million] buy back program announced
— Renewal rates in first half better than expected
— Record unearned premium reserve of 653 million pounds [$1.2 billion].
Chief Executive Charles Philipps commented: “This has been an exceptionally profitable first half for Amlin. Our performance over the last few years has placed us in a strong financial position so that we are now able to return capital to shareholders, reinforcing our focus on return on equity”.
The bulletin also noted, however, that although the first half of the year had been exceptional, “our risk exposure is heavily weighted towards the second half of the year, as so clearly demonstrated by Hurricane Katrina, this provides a strong base from which we expect to achieve another good full year return. Even though we anticipate that rating conditions will continue to soften generally, we expect that the trading environment will be satisfactory in 2006. Amlin’s very strong performance over the last few years leaves us well placed both to develop the Group strategically and to return capital to shareholders.
“We intend to initiate a share buy back programme and, subject to there being no unexpected developments, to buy back up to 25 million pounds [$46 million] worth of shares. We will review the potential to return further capital taking account of the final out turn for 2005 and our strategic needs, and with a view to reinforcing our potential to continue to deliver superior returns on equity.”
The full report and further comments may be obtained on the company’s Website at: www.amlin.com.
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