Earthquakes hit Catlin profits

Profits fell sharply at Catlin in the year to 31 December as natural disasters such as the earthquakes in Chile and New Zealand forced the property insurer to pay out for claims.Pre-tax profits fell to $406m (£252m) from $603m the previous year. Catastrophe losses amounted to more than $200m, compared to no such losses in 2009.Catlin also experienced a drop in total investment return due to the low interest rate environment, as predicted."All of Catlin's underwriting hubs performed well during 2010, despite increasing market competition and a high incidence of natural catastrophes," said chief executive Stephen Catlin, who founded the Bermuda-based company in 1984. "The underwriting contribution from our non-London hubs continued to grow, producing 46 per cent of the group's total underwriting profits in 2010." Castelnau Group