Amlin Returns to Profit in 2012 as Catastrophe Claims DeclinedGavin Finch and Kevin Crowley
Amlin Plc, the biggest Lloyd’s of London insurer by market value, returned to profit in 2012 as catastrophe claims fell.
Pretax profit was 264.2 million pounds ($397 million) in 2012 after a loss of 193.8 million pounds a year earlier, the London-based insurer said today in a statement. That missed the 277 million-pound average estimate of 17 analysts, according to data compiled by Bloomberg.
“In 2012, Amlin returned to robust profitability and generated a strong return on equity,” Chief Executive Officer Charles Philipps said in the statement. “Recent growth is building earnings momentum and with profits from our non-catastrophe businesses improving, we are well positioned to continue to expand into more favorable market conditions.”
The insurer returned to profit after catastrophe claims fell even after Hurricane Sandy, which struck New York and New Jersey in October. The firm paid 141.6 million pounds for Sandy, which was part of large catastrophe claims totaling 152.3 million pounds last year, down from 501 million pounds in 2011.
The company said it also benefited from “a strong overall underwriting result,” helped by improving trading conditions such as for catastrophe reinsurance.
Total income climbed to 2.14 billion pounds in 2012, compared with 1.98 billion pounds the previous year, the company said. It plans to pay a full-year dividend of 24 pence a share, up from 23 pence a share.
“In 2012, the group delivered a strong financial performance despite the losses incurred from Hurricane Sandy and a challenging economic environment,” Philipps said.