Amlin swings back into profit with strong financial performance

Pre-tax profit rose to 264.2m pounds at FTSE 250-listed Amlin in the year ended December 31st, one year after the specialist insurance and reinsurance underwriting group reported a loss before tax of 193.8m pounds.

Pre-tax profit rose to 264.2m pounds at FTSE 250-listed Amlin in the year ended December 31st, one year after the specialist insurance and reinsurance underwriting group reported a loss before tax of 193.8m pounds.

In its preliminary results for the year, the group reported that it had £141.6m of claims attributable to Hurricane Sandy. This compared to £500.8m total net catastrophe claims in 2011.

The group also reported a return on equity of 17.4%, above the group's estimated cost of equity of 8.5%, and a combined ratio of 89%, with positive trends in all divisions.

An investment return of £165.3m was recorded, equivalent to 4.1% on average invested assets. This compared to £40.5m in 2011, which was equivalent to 0.9% on average invested assets.

The dividend declared increased by 4.3% to 24p per share. This compared to 23p per share in 2011.

Charles Philipps, the Chief Executive Officer of Amlin, said: "In 2012, Amlin returned to robust profitability and generated a strong return on equity. Recent growth is building earnings momentum and with profits from our non-catastrophe businesses improving, we are well positioned to continue to expand into more favourable market conditions."

MF

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