In a trading statement, issued today, Nov. 21, London-based Amlin, Plc, a leading Lloyd’s insurer (Syndicate 2001), indicated that its provisional net loss estimate from Hurricane Wilma is estimated to be $52 million. The company affirmed its previous loss estimates for Hurricanes Katrina and Rita remain materially unchanged.
Despite those losses Amlin reaffirmed its confidence in meeting its earnings targets for 2005. The company noted that “Syndicate 2001’s premium income (net of brokerage) to the end of October 2005 was £715 million [$1.23 billion] (at rates of $1.77:£1 and excluding reinstatement premiums of approximately £22 million [$37.85 million] from hurricane events). This represents 88 percent of the Syndicate’s planned income for the year and is in line with expectations.”
The statement reaffirms Amlin’s confidence in the future as well. The Group is in the process of establishing a Bermuda-based reinsurer with an initial capitalization of $1 billion (See IJ Website Nov. 15.). Amlin noted: “Recent price movements show a reversal of recent rating trends in many classes with increases in rates for property
insurance and reinsurance, energy and marine classes in general. For syndicate 2001 the level of income renewed at this time of the year is low and it is expected that rate movements will accelerate for the January renewals.” The company also indicated improved forecasts for the 2003 and 2004 years of account for Syndicate 2001.
CEO Charles Philipps commented: “The diversity of Syndicate 2001’s business, with many classes unaffected by claims emanating from the windstorm season, coupled with the skill of our underwriting team, again demonstrates the strength of the Amlin franchise. Despite the hurricane losses of this year we continue to expect a good financial performance for the business in 2005.”
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