Amlin, a UK-based specialist insurance and reinsurance underwriting group, has reported a pre-tax loss of GBP192.3m in first half of 2011, compared a pre-tax profit of GBP107.6m in the same period of 2010.
The first six months of 2011 have proven to be a difficult period for Amlin. Catastrophe loss activity has again been high with an unprecedented level of first half claims.
Underwriting contributed a loss of GBP194.3m to pre-tax losses. Losses for major catastrophe related claims were GBP314.3m, compared to GBP127.1m in the first half of 2010.
The loss after tax was GBP151.5m, with an effective tax rate of 21.2% (H1 2010: 21.5%). The company’s weighted average return on equity for the five year period since 2006 is 18.6%.
The company posted gross written premium of GBP1.51bn, an increase of 1.9% compared to GBP1.48bn in the same period a year ago.
Net earned premium increased by 6.6% to GBP919.3m from GBP862.5m in the year ago period.
Amlin CEO Charles Philipps said exceptional catastrophe losses in the first half of 2011 have taken a heavy toll on the reinsurance industry, and Amlin has been no exception.
"While our results are disappointing, the core underwriting businesses in London and Bermuda are well placed to take advantage of an improving rating environment, particularly in catastrophe lines.
"We remain focused on addressing areas of underperformance and I am confident that Amlin can continue to deliver excellent long term returns for our shareholders," Philipps said.