Amlin profits surge over 300%

1st Mar 2010 07:57

Underwriter Amlin enjoyed a bumper 2009 with profits rising by more than 300% as low claims combined with a record performance from its investment arm.Pre-tax profits jumped from £121.6m to £509.1m with a return on equity of 37%. The investment side contribution rose to £207.5m from £18m, while on the underwriting side the combined ratio improved again to 72% from 76%. Gross premiums written rose to £1.54bn from £1.03bn."The 2009 results clearly benefited from a more favourable trading environment compared with the dual headwinds of major catastrophe losses and financial market turmoil of 2008," Amlin said."Overall, we anticipate a more challenging environment for 2010 but one where Amlin remains capable of delivering above target returns. Our underwriting discipline and good margins in areas towards which we are weighted, such as reinsurance, marine and a rising UK commercial insurance market, should ensure that we continue to see healthy underwriting returns. The investment market will likely deliver lower returns but is still capable of generating a material contribution if we remain agile and risk aware," it added.The dividend for the year rises by 17.6% to 20p.