25 May 2007 07:02
Catlin Group Limited25 May 2007 CATLIN GROUP LIMITED AGM STATEMENT HAMILTON, Bermuda - The Board of Directors of Catlin Group Limited ('CGL':London Stock Exchange), the international specialty insurer and reinsurer,released the following statement at the conclusion of the Group's Annual GeneralMeeting, held 24 May 2007 in Bermuda. Current Trading The Group performed strongly in the period ended 31 March 2007, reflectinggenerally positive market conditions and continued broker support for Catlin'senlarged underwriting operations. Gross premiums written during the firstquarter met the Group's targets and amounted to US$1.2 billion, compared with approximately US$500 million written by Catlin on a stand-alone basis in the first quarter of 2006. Margins should remain strong during the remainder of 2007, but there is expected to be modest pressure on pricing and volumes. Business retention in the first quarter, following the acquisition of WellingtonUnderwriting plc, was consistent with the favourable experience reported by theGroup during the January renewal season. Gross premiums written in London were comparable to the combined volumes duringthe first quarter of 2006, whilst gross premium volume underwritten in Bermudagrew. The premium volume written by Catlin's international offices is on trackwith the published targets established by management. Catlin US continues toattract new underwriting teams and build new specialties, which will lead toincreased premium volume during the second half of 2007. Average weighted premium rates for catastrophe-exposed business increased by 3per cent during the period ended 30 April 2007, whilst average weighted premiumrates for non-catastrophe-exposed business decreased by 4 per cent. Overall,average weighted premium rates for all classes of business decreased by 1 percent during the period ended 30 April 2007, which is in line with the Group'sexpectations. Rate adequacy continues to be good. The Group's loss experience during the first quarter was benign, reflecting therelatively low incidence of catastrophic losses. Prior year reserves havedeveloped according to expectations. Operating expenditures were well within plan during the first quarter of 2007. Investment Return The Group's annualised investment return at 31 March 2007 amounted to 5.7 percent, including unrealised gains resulting from the US bond rally in the earlypart of the year. The Group is currently reviewing its investment strategy inthe light of the increase in its investment assets. Other Developments •The Group has established four new offices in continental Europe in 2007 in Paris, Barcelona, Zurich and Innsbruck. •Catlin US's strategic growth continues with the addition of experienced underwriting teams specialising in equine, crisis management, inland marine and excess casualty business, all areas with which the Group has considerable experience. In addition, a new office in Cleveland, Ohio, has been established. •A commercial motor insurance underwriting team has been recruited in London and will begin writing business for the Group in the autumn. •Catlin is one of the inaugural participants in Lloyd's new reinsurance operation in China, Lloyd's Reinsurance Company (China) Ltd, which opened on 16 April in Shanghai. Stephen Catlin, chief executive of Catlin Group Limited, said: "We are very pleased with the performance of the enlarged Catlin Group during2007. Both the pricing and volumes of business written have met our expectationsAt the same time, we have reinforced our commitment to disciplined underwriting. "Whilst we expect continued downward pressure on rates for more classes ofbusiness throughout the remainder of 2007, we believe that underwriting marginsare still robust. We are prepared for the onset of the Atlantic hurricaneseason, having substantially reduced our exposure to catastrophic events overthe past 18 months. "Following the Wellington acquisition, the Group has never been betterpositioned. During the first part of 2007, the Group has been strengthened bynew underwriting teams joining in London, in the US and in the Group'sinternational offices and by the recruitment of senior managers with a broadrange of experience. The integration continues to be ahead of expectations, andwe are on target to deliver at least the planned synergy savings. "We look ahead to the remainder of 2007 and beyond with enthusiasm andconfidence." Catlin will release its financial results for the six months ending 30 June 2007on Thursday 6 September 2007. - ends - For more information contact: Media Relations:James Burcke, Tel: +44 (0)20 7458 5710Head of Communications, London Mobile: +44 (0)7958 767 738 E-mail: james.burcke@catlin.com Liz Morley, Maitland Tel: +44 (0)20 7379 5151 E-mail: emorley@maitland.co.uk Investor Relations:William Spurgin, Tel: +44 (0)20 7458 5726Head of Investor Mobile: +44 (0)7710 314 365Relations, London E-mail: william.spurgin@catlin.com Notes to editors: 1. Catlin Group Limited, headquartered in Bermuda, is an international specialist property/casualty insurer and reinsurer writing more than 30 classes of business worldwide through four underwriting platforms and an international network of offices. Catlin shares are traded on the London Stock Exchange (ticker symbol: CGL). More information about Catlin can be found at www.catlin.com. 2. On 18 December 2006, Catlin's offer to acquire Wellington Underwriting plc was declared unconditional. Combined, Catlin and Wellington underwrote gross premiums of US$2.7 billion during 2006 and produced net income of US$428.5 million. At 31 December 2006, Catlin's total assets amounted to US$8.8 billion and stockholders' equity amounted to US$2.0 billion. 3. Catlin's four underwriting platforms are: • The Catlin Syndicate at Lloyd's of London (Syndicate 2003) is a recognised leader of numerous classes of specialty insurance and reinsurance. The Catlin Syndicate is the largest at Lloyd's in 2007 based on premium capacity of £1.25 billion. • Catlin Bermuda (Catlin Insurance Company Ltd.), which is a leading participantin the Bermuda market, underwriting a diversified portfolio of property treaty, casualty treaty, political risk and terrorism, and structured risk coverages. • Catlin UK (Catlin Insurance Company (UK) Ltd.), which specialises inunderwriting commercial non-life insurance for UK clients through a network ofregional offices. It also writes other classes of business written by the CatlinSyndicate. • Catlin US, which encompasses Catlin's operations based in the United States. Catlin US underwrites a wide variety of specialty property/casualty insurance and reinsurance products from a network of offices throughout the U.S. 4. Catlin's international network of offices allows the Group to diversify further its risk portfolio and to work more closely with local policyholders and brokers. Besides its offices in the UK, US and Bermuda, Catlin operates offices in Canada, Australia, Singapore, Malaysia, Hong Kong, China, Guernsey, Germany, Belgium, France, Spain, Switzerland and Austria. This information is provided by RNS The company news service from the London Stock Exchange