Kin Group Regulatory News (KIN)

11 Dec 2006 14:50

Kiln PLC11 December 2006 Kiln plc Trading Statement Kiln plc, the specialist Lloyd's insurance group, today made the followingstatement on trading conditions. Rating environment Pricing across the Kiln specialist underwriting portfolio continues to be strongand we are of the view that this will continue into 2007. In our flagshipSyndicate 510, all areas of the business have shown increases on prices for theperiod to 15 November compared with last year, apart from the aviation divisionwhich is marginally down (96.9%) on 2005. Syndicate 510 2006/2005 Class of business %Accident and Health 100.3Property 112.4Reinsurance 134.1Marine and Special Risks 124.7Aviation 96.9Total 115.9 Kiln premium rating index as at 15 November 2006 Reflecting the benign hurricane season and the absence of major catastrophes todate this year, Kiln's gross incurred loss ratio in the first three quarters of2006 is 14%, compared with 58% at the same point in 2005. Gross incurred loss ratio to 2003 2004 2005 200630 September % % % %(net of acquisition costs) Syndicate 510 Reinsurance 4 12 67 2Syndicate 510 Property 23 34 68 26Syndicate 510 Marine 9 14 57 11Syndicate 510 Aviation 4 11 21 16Syndicate 510 Accident and Health 22 18 20 15Syndicate 308 38 32 26 19Syndicate 557 2 10 69 4Syndicate 807 13 26 44 13Total Kiln Underwriting Limited 12 21 58 14 Gross written premiums Gross premium income written to 30 September is up from £268.3 million in 2005to £334.9 million in 2006 (at $1.82 to £1), which is an increase of 25%. Auctions/capacity R J Kiln & Co, the Lloyd's managing agency wholly owned by Kiln plc, has had itsbusiness plans agreed by Lloyd's for the 2007 year of account. Its overallmanaged capacity will be over £1 billion for 2007, which is an increase of 23%on 2006. The capacity of Kiln's flagship syndicate 510 will increase by 18% from £625million to £735 million for 2007. Following the 2006 Lloyd's auctions, Kiln hasincreased its ownership in Syndicate 510 from 47% in 2006 to 53% for 2007.Across all of the Kiln managed syndicates for 2007, the group has increased itsownership from 44% in 2006 to 46% in 2007. Funds at Lloyd's The Economic Capital Allocation ratio for 2007, which is the level of capitalthat Kiln is required to hold in order to operate at Lloyd's, remains at its2006 level of 47%, reflecting our adjusted risk appetite introduced during thecourse of 2006 as well as expected pricing levels. Investment performance Kiln's investment performance in 2006 to the end of October was solid, with theportfolio showing a return of 3.8% over the period. This comprised a return of3.3% on sterling assets and 4.1% US dollar assets. Strategy Kiln has made good progress delivering on its strategy to extend itsdistribution channels internationally, opening offices in Singapore, Hong Kongand Belgium in recent months. CEO Edward Creasy said: "2006 is shaping up to be an excellent underwriting year. The pricingenvironment remains good and, as long as 2006 continues to be relatively benignin terms of claims experience, we are looking forward to a strong financialperformance for the year. Market conditions for 2007 continue to look aspromising as we predicted when we announced plans to increase our capacityearlier this year." 11 December 2006 Contact: Kiln plc 020 7886 9000Edward Creasy, Chief executive officerKate Rogers, Head of communications College Hill 020 7457 2020Tony FriendRoddy Watt Kiln Kiln is an international insurance and reinsurance underwriting group with aportfolio of specialist risks. Since 1962, Kiln has built its business on thestrength of its underwriting and its relationships. Kiln plc is listed on the London Stock Exchange. Its operating subsidiary, R JKiln & Co Limited, plans to have approximately £1 billion of capacity undermanagement for the 2007 year of account, making it one of the largest agenciestrading in the Lloyd's of London insurance market. A recognised leader in each of the five main business areas in which itoperates: reinsurance, accident and health, aviation, marine and special risks,and property, Kiln syndicates enjoy a security rating of 'A' (Strong) assignedto Lloyd's by Standard and Poor's. This information is provided by RNS The company news service from the London Stock Exchange