Trading Statement

RNS Number : 9044W

Amlin PLC

07 February 2012

 



Amlin plc

PRESS RELEASE

For immediate release

7 February 2012

TRADING STATEMENT

Amlin plc (Amlin), the specialist international insurer, today issues an update on current trading as set out below.

2012 underwriting

1 January is a major renewal date for a number of our key classes. Amlin has written total income to date of £746.4 million, net of brokerage, a 19.2% increase on the prior year. Overall renewal rates for the Group have increased by 4.0% (January 2011: decreased by 1.3%).

Unprecedented catastrophe loss activity in 2011 has prompted a notable uplift in reinsurance rates.  At 1 January, our international catastrophe accounts, written within the London Reinsurance business and Amlin Bermuda, experienced average rate increases of 15.9%.  Our US catastrophe book improved by 14.5%.

Income levels have also been boosted by Amlin Re Europe, which at the start of its second full year of trading, has increased its gross written premium, net of brokerage, to £125.0 million (January 2011: £55.6 million). 

Estimate of claims from Thai floods

The scale of insured damage arising from the flooding in Thailand remains uncertain, with current insured loss estimates ranging between $8 billion and $20 billion.

Amlin is working closely with brokers with a view to determining its anticipated claims from the Thai floods and to delivering an efficient and prompt claims service to its affected clients.  However, to date, limited claims information has been provided.

Amlin's exposures to the Thai floods lie mainly in its international property reinsurance account, with only limited catastrophe account involvement.  There is further exposure within the insurance and other reinsurance accounts however claims arising from these accounts are expected to be largely covered within normal loss development.

Amlin estimates that the property and catastrophe reinsurance account claims will be between £50 and £70 million, net of reinsurance recoveries. These estimates are based on a review of client exposures in the region rather than individual loss advices.  While the quality and scope of information remains limited, claims will be reserved towards the top end of the range.

Estimates from Costa Concordia

The grounding of the cruise ship Costa Concordia has led to market claim estimates of $500 million to $1billion for the cost of damage to the vessel and further losses from passenger liability claims, removal of wreck and potential environmental claims.  Amlin's worst case position on such estimates would be less than £10 million, net of reinsurance recoveries.

Amlin will report Preliminary Results for the year ended 31 December 2011 on Monday 5 March 2012.

ENDS

Enquiries:

Charles Philipps, Chief Executive, Amlin plc                                 0207 746 1000

Richard Hextall, Finance Director, Amlin plc                                 0207 746 1000

Analysts and Investors

Julianne Jessup, Head of Investor Relations, Amlin plc                  0207 746 1961

Ed Berry, Vice-President, FTI Consulting                                     0207 269 7297

Media

Hannah Bale, Head of Communications, Amlin plc                        0207 746 1118

Ed Gascoigne-Pees, Managing Director, FTI Consulting                0207 269 7132

 

END

 

 

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