Amlin's annual pre-tax profit jumps as insurance claims decline

3rd Mar 2014 09:30

- Pre-tax profit rises 23.3 per cent- Gross premiums and ROE increase- Major catastrophe losses narrow- Dividend raised 8.3 per cent Insurance firm Amlin achieved a 23.3 per cent rise in annual pre-tax profit to 325.7m pounds, supported by growth in premiums and lower catastrophe activity.Gross written premium rose 2.6% to £2.46bn in the year through December 2013 and the claims ratio dropped to 52% from 57% the previous year. Major catastrophe losses dropped to £18.5m last year from £152.3m in 2012, as the only notable large disaster in 2013 was the European flooding in May and June.However, there was a relatively high frequency of smaller catastrophe and large risk losses in the year, totalling £62m and £76m respectively (2012: £26.2m and £3.2m respectively).Return on equity (ROE) increased to 19.8% from 17.4%, exceeding the cross-cycle target of at least 15%. Underwriting generated a combined ratio of 86% for the year, contributing a profit of £283.1m, compared to a respective 89% and £207.1m the prior year.The group raised its dividend by 8.3% to 26p per share.Chief Executive, Charles Philipps, said: "Our 2013 result is a testament to the strength of our talent and reinforces our capability and potential. With a number of businesses improving their performance, and our actions to drive profitability forward, we are well placed to continue to deliver good returns for shareholders."RD