Catlin Group has premium first half

FTSE 250 insurance firm Catlin Group jumped back into the black in the first half of 2012 as premiums rose and its London hub sprang back into life.

The company posted pre-tax profits of $231m in the six months to the end of June, compared to a loss of £201m the year before.

The Bermuda-based firm reported a combined ratio of 86% with a record $443m in net underwriting contribution.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The combined ratio a key measure of an insurer's underwriting profitability based on the ratio of net incurred claims plus net operating expenses to net earned premiums.

A combined ratio of 100% is break even; a ratio of over 100% is a loss, less than 100% is a profit.

The board declared an interim dividend of 9.5p per share, a 6% increase on the year before.

Eponymous Chief Executive, Stephen Catlin, said the business continued to grow, with its UK underwriting hub in London producing meaningful growth for the first time in five years.

"The rating environment continues to be favourable, as average weighted premium rates across the portfolio increased by 5% during the first half of 2012," he said.

"Rates for catastrophe-exposed business classes continue to increase, and we are seeing positive momentum for other classes, including US Casualty business."