Catlin reports drop in first-half combined ratio

Specialty property and casualty insurer Catlin reported a 118% increase in interim profits before tax to reach $318m (£186m), but said it combined ratio declined.The consensus estimate from analysts had been for interim profits of $237m.Unadjusted gross premiums grew 11% to $3.66bn, in part due to foreign exchange movements and increased values for multi-year contracts written at the London and Bermuda underwriting hubs. On an underlying basis gross premiums rose by 5%. However, the insurer's combined ratio - a key measure of profitability - rose to 85% from 88.1% for the same period of a year ago (consensus: 88.6%). The annualised rate of return on equity increased to 17.1% from 8.1%.Commenting on the results chief executive Stephen Catlin said that all areas of the business performed well, with rating conditions having remained more resilient at its US, Europe, Asia-Pacific and Canada hubs than in the London and Bermuda markets. Catlin also emphasised the benefits which the insurer derives from its global footprint and access to a wide range of business. The interim dividend was increased by 5% to 10.5p. AB Castelnau Group