Insurance firm Amlin saw a 7.1% rise in gross written premiums for the 10 months ended 30 October, but warned full year results will be affected by ongoing market volatility and a rise in the number of claims made.
Gross written premiums, the revenue expected to be generated over the period of a contract, rose from £1,916.6m in January to £2,051.9m by the end of October.
However, 2011 has already proved to be the most costly year on record for economic losses, with hurricane Irene and the Thai floods being two of the most recent catastrophes. The company's estimated net claims resulting from the Japanese earthquake in March have increased to $206m, from $156m reported in its interim results.
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The firm was keen to emphasise that it has seen a significant improvement in US catastophe reinsurance rates since the catastrophe events of the first quarter.
The trading environment for Amlin UK has also further improved, with an average rate increase of 5.2% for the year to date. Increases to fleet motor rates now average 7.1% for the year and overall, fleet and other motor income has increased by 8.8% to £103.2m, with new business amounting to £28.2m.
The insurer remains in a "solid financial position" and is able to fund continued growth if conditions improve.
Charles Philipps, Amlin's chief executive, said: "While this year's performance has been impacted by an exceptionally high level and frequency of catastrophe events, the overall outlook for underwriting returns is improving and we remain a strong business which is more than capable of delivering excellent returns for shareholders.
"The environment for the period from 1 July has continued to be volatile with material further claims activity and difficult investment markets. Whilst this will impact on the current year's full year financial return, the outlook is improving, with rating levels in a number of important markets for Amlin continuing to strengthen or beginning to turn positively."
The share price rose 5.6% to 309.4p by 12:42.
NR
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