Amlin returns to profit

Insurance and reinsurance firm Amlin revealed a first half profit compared to a loss the same time a year earlier as catastrophe loss activity reduced sharply.

In the six months ended 30 June the group reported pre-tax profit of £184.5m compared to a loss of £192.3m during the same period a year before.

In contrast to 2011, the first six months of 2012 saw a relatively benign period for catastrophe losses, Amlin explained. There were few large risk losses in the period. The group claims ratio decreased to 53% from 92% in the same half in 2011.

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The largest catastrophe event in the period was the tornado activity which hit the mid-western and southern US states during February and early March, said the insurer.

Gross written premium rose 19.8% at £1.8bn and combined ratio reduced to 84% from 122%, generating an underwriting profit of £153.8m compared to a loss of £203.8m following limited catastrophe activity in the period.

Chief executive Charles Philipps commented, "This is a welcome return to profit and the strength of our underwriting result underlines the quality and diversity of our business. The improving trading environment is creating many opportunities for profitable growth, for which we have both the capital and the underwriting capability to take advantage."

The interim dividend has been increased 4.2% to 7.5p per share.

CJ