Amlin returns jump as catastrophes drop

 
Marion Dakers
INSURANCE group Amlin is upbeat about beating its return on equity target this year thanks to strong underwriting returns and a dearth of catastrophe claims.

Amlin, an underwriter in the Lloyd’s of London insurance market, said gross written premiums were flat at £2.2bn in the first nine months of the year.

Meanwhile the firm’s investments, which include a stake in Leadenhall Capital Partners, returned two per cent in the period.

Amlin expects to top its cross-cycle return on equity target of 15 per cent this year.

It added that its reinsurance and catastrophe businesses are set to come under further price pressure next year, though Amlin expects to maintain “acceptable margins”.

“Our core businesses are performing well in demanding market conditions,” said chief executive Charles Philipps in a statement yesterday.

Peel Hunt analyst Mark Williamson hiked his pre-tax profit forecast by 14 per cent in response to the update, saying he sees “increasing evidence that Amlin is returning to past form”.

Shares in the firm closed up 3.7 per cent at 447.7p.