Amlin sees 5.1 per cent gross written premium growth in Q1

22nd May 2014 08:59

A good start to 2014 was had by non-life insurance and reinsurance underwriting group Amlin, with gross written premium growth of 5.1 per cent in the first quarter.The figure rose to £1,276.7m from £1,215.0m a year earlier, while at constant rates of exchange gross written premium increased by 8.3%. Net written premium increased 11.9% to £1,049.9m. Renewal retentions improved to a "healthy" 88.2% (March 31st 2013: 87.5%), while average renewal rates decreased by only 2.3% (March 31st 2013: increase 1.2%)."There is clear evidence of increasing competition in a number of business lines, most notably catastrophe reinsurance," Amlin said. "However, good margins remain possible and, in this more challenging environment, Amlin achieved growth in catastrophe reinsurance gross written premium of 3.7% in the three month period, while recording an average renewal rate decline of 8.8%." Its US catastrophe renewal rates reduced by an average of 10.3%, while international catastrophe renewals experienced average rate decreases of 7.3%. It said other reinsurance lines had not come under the same pressure as catastrophe reinsurance and Amlin Re Europe continued to develop positively, adding £30.3m of new income in the period with an average renewal rate decrease of only 1%.Income for Amlin UK was lower, reflecting reductions to income estimates on binding authorities made later in 2013. However, its fleet motor renewal rates have continued to rise, with an average increase of 6.1% recorded in the first three months. Reinsurance expenditure in the quarter was £226.8m, representing 17.8% of gross written premium (March 31st 2013: £276.7m and 22.8%), which it said reflected the closure of Special Purpose Syndicate 6106, which accounted for £17.1m of reinsurance expenditure in the prior period.The share price moved 0.28% lower in the first hour of trade. NR