Castelnau Group Regulatory News (CGL)

19 Oct 2005 07:01

Catlin Group Limited19 October 2005 CATLIN REVIEWS LOSS ESTIMATES FROM HURRICANES KATRINA AND RITA HAMILTON, Bermuda - Catlin Group Limited ('CGL': London Stock Exchange), theinternational specialist property and casualty insurer and reinsurer, hascompleted its initial review of loss estimates from Hurricane Rita and hasreviewed its loss estimates from Hurricane Katrina. Catlin estimates that losses from Hurricane Rita will be of the order of US$90million gross of reinsurance and US$60 million on a net basis. This estimate issubject to considerable uncertainty and could be revised as further informationis received by the Group. Catlin has significant levels of reinsuranceprotection remaining should the Group receive additional claims arising fromHurricane Rita. Catlin is not revising its 12 September 2005 estimate that losses arising fromHurricane Katrina would be of the order of US$275 million gross of reinsuranceand US$125 million on a net basis. This estimate, which is still subject tosignificant uncertainty, is consistent with an industry-wide loss ofapproximately US$40 billion. Based on these estimates, the combined losses to Catlin from Hurricanes Katrinaand Rita will be of the order of US$365 million gross of reinsurance and US$185million on a net basis. Stephen Catlin, chief executive of Catlin Group Limited, said: "Hurricane Katrina represents the largest insured loss in history, and HurricaneRita is a major catastrophe in its own right. In the light of these losses, weare already seeing significant rate increases for numerous classes of insuranceand reinsurance, particularly those affected by the hurricanes. "Despite the losses from the hurricanes, Catlin is in an excellent position totake advantage of the significant underwriting opportunities that will ariseover the coming months." - 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, Tel: +44 (0)20 7379 5151The Maitland Consultancy E-mail: emorley@maitland.co.uk Investor Relations:William Spurgin, Tel: +44 (0)20 7458 5726Head of Investor Relations, London Mobile: +44 (0)7710 314 365 E-mail: william.spurgin@catlin.com Notes: 1. The Catlin Group, headquartered in Bermuda, is an international specialist property/casualty insurer and reinsurer writing more than 30 classes of business worldwide. Catlin wrote gross premiums of US$1.43 billion and reported record net income of US$154.1 million in 2004. Catlin shares are traded on the London Stock Exchange (ticker symbol: 'CGL'). 2. The Catlin Group currently operates three underwriting platforms: • The Catlin Syndicate at Lloyd's of London (Syndicate 2003). The Catlin Syndicate is the eighth largest syndicate at Lloyd's based on 2005 premium capacity of £500 million. It is a recognised leader of numerous classes of specialty insurance and reinsurance. Over the past 20 years, the Catlin Syndicate and its predecessors have consistently outperformed the Lloyd's market as a whole. • Catlin Bermuda (Catlin Insurance Company Ltd.). Catlin Bermuda underwrites property treaty and casualty treaty reinsurance and property and casualty insurance for US risks on a surplus lines basis. • Catlin UK (Catlin Insurance Company (UK) Ltd.). Catlin UK specialises in writing commercial property, general liability, professional indemnity, directors' and officers' liability and commercial crime insurance for UK clients. It also writes other classes of business written by the Catlin Syndicate. All three Catlin underwriting platforms have a financial strength rating of 'A'(Excellent) from A.M. Best Company. In addition, Catlin announced in September 2005 that it had reached an agreement to purchase a shell insurance company which is an admitted insurer in 27 US states. Subject to completion of the acquisition and regulatory approval, this company will be renamed Catlin Insurance Company Inc. and become the Group's fourth underwriting platform, writing property/casualty coverage for US commercial clients that require coverage written on an admitted basis. The Catlin Group also has established offices in the US, UK, Guernsey, Canada, Germany, Belgium, Singapore, Malaysia and Australia. These offices, which underwrite on behalf of Catlin's underwriting platforms, allow Catlin to work more closely with local clients and their brokers. 3. More information about Catlin can be found on the Group's website: www.catlin.com. This information is provided by RNS The company news service from the London Stock Exchange