Amlin delivers another strong result
04 September 2006
Annualised first half return on equity, at 24.2%, above 20% for fourth consecutive year.
Profit before tax of £120.1 million, down 13.2% owing to lower investment returns and IFRS currency translation
- First half yield on average funds invested of only 1.5%,
compared to 2.9% in H1 2005
- £45.5 million adverse effect of foreign exchange translation on net non-monetary liabilities relative to 2005
Underlying underwriting performance stronger
- Gross premiums written up 25% to £846.2 million (H1 2005:
£675.8 million)
- London underwriting profit up 7.5% at £101.5 million (H1
2005: £94.4 million)
- Solid start to Amlin Bermuda with underwriting profit of
£23.6 million
- Catastrophe exposures successfully reshaped
Interim dividend increased 5% to 4.2p per share (H1 2005: 4p per share)
Balance sheet materially strengthened with £230 million subordinated debt issue
Positive outlook for full year and 2007
- Earned premiums expected to be skewed to second half more than
in recent years
- Net unearned premium reserve at 30 June 2006 up 19% to
£779 million (at 30 June 2005: £653 million)
- Average renewal rate increase to 31 July of 8.6% for London operation
Charles Philipps, Chief Executive, commented as
follows:
“This has been a busy and productive
first half for Amlin. The six month result again demonstrates the
strength of our business. While the profit is a touch down on last
year, owing to exchange rate fluctuations, our annualised return on
equity is still a very healthy 24%. With Amlin Bermuda building its
potential and our reinsurance exposures repositioned to address
changes in the market we are well placed going forward.”
Enquiries:
| Charles Philipps, Chief Executive, Amlin plc | 0207 746 1000 |
| Richard Hextall, Finance Director, Amlin plc | 0207 746 1000 |
| Hannah Bale, Head of Communications, Amlin plc | 0207 746 1118 |
| David Haggie, Haggie Financial Limited | 0207 471 8989 / 07768 332486 |
| Peter Rigby, Haggie Financial Limited | 0207 471 8989 / 07803 851426 |
View the full Press Release in PDF format.
