Strong financial performance in improving markets
Highlights
- Robust financial performance underlines the strength of Amlin's franchise
- Profit before tax of £184.5 million (H1 2011: loss of £192.3 million)
- First half return on equity of 11.9% (H1 2011: (8.8)%), 23.8% annualised
- Gross written premium up 19.8% at £1,814.7 million (H1 2011: £1,514.6 million)
- Combined ratio of 84% (H1 2011: 122%), generating an underwriting profit of £153.8 million (H1 2011: loss of £203.8 million), with limited catastrophe activity in the period
- No material movement in prior year catastrophe claims
- Average rate increase of 4.2%, with more than 80% of the book now benefitting from rate improvements
- Investment return of 2.0% (H1 2011: 1.0%), generating an investment contribution of £84.7 million (H1 2011: £45.3 million)
- Earnings per share of 34.1 pence (H1 2011: (30.7) pence)
- Interim dividend increased 4.2% to 7.5 pence per share (H1 2011: 7.2 pence per share)
- Net tangible assets per share increased 5.9% to 257.4 pence (YE 2011: 243.0 pence)
Charles Philipps, Chief Executive, commented as follows:
"This is a welcome return to profit and the strength of our underwriting result underlines the quality and diversity of our business. The improving trading environment is creating many opportunities for profitable growth, for which we have both the capital and the underwriting capability to take advantage."
