Amlin Syndicate 2001's Profit Forecasts Increased
17 August 2004
- Syndicate 2001's profit forecasts continue to increase
- Rates and conditions remain relatively robust
Amlin, the leading Lloyd’s insurer, today updated its Syndicate 2001 forecasts for the 2002 and 2003 years of account and commented on current trading as set out below.
Current trading
Amlin plc continues to achieve strong growth in its premium income arising from an increase in its ownership of Syndicate 2001 to 100% of capacity in 2004 from 86% in 2003 and an increase in Syndicate 2001’s gross written premium (net of brokerage) for the six months to the end of June 2004 to £580 million (at rates of $1.81: £1). This compares with £539 million for the same period in the previous year, net of quota share reinsurance and converted at the same exchange rate.
The average renewal rate reduction in the first half of 2004 was –2.5%, weighted across Syndicate 2001’s premium by business class. This modest reduction in rates will continue to allow Amlin to earn excellent returns on Syndicate 2001's underwriting.
Syndicate 2001 Forecasts
Syndicate 2001's forecasts for the 2002 and 2003 years of account, which are expressed below as a percentage of capacity after standard personal expenses, have both improved.
| Year of account | Capacity £m | Amlin share % | Current forecasts | Previous forecasts |
| 2002 | 800 | 72.3 | 16% to 21% | 15% to 20% |
| 2003 | 1000 | 86.0 | 12.5% to 17.5% | 11% to 16% |
Both years of account continue to develop well. Major loss incidence for the first half of 2004 has again been low which has benefited the 2003 year of account. Amlin expects the forecasts to continue to improve if a normal level of loss development is experienced.
Charles Philipps, Chief Executive added, “Current trading conditions remain good and the increased forecast profits for Syndicate 2001 again demonstrate the quality of our underwriting and diversified strength of the group”.
Enquiries:
Amlin plc
Charles Philipps 0207 746 1000
Richard Hextall 0207 746 1000
Haggie Financial Limited
David Haggie 0207 417 8989
