LLOYD’S of London insurer Amlin yesterday reported a seven per cent rise in gross written premiums during the first four months of the year, boosted by a strong performance at its marine and aviation divisions.
The FTSE 250 company used the trading update, released to coincide with its AGM, to say it also expects to increase reinsurance margins this year.
While the UK consumer motor insurance business is struggling due to tough competition, Amlin said it is seeing strong growth in British commercial lines, with fleet car insurance rates up eight per cent.
Eamonn Flanagan, an analyst with Shore Capital, reiterated his buy recommendation on the stock and said it “could easily emerge as the ‘dark horse’ of the sector” due to “latent potential within the group for out-performance”.
Chief executive Charles Philipps said: “Amlin has made a positive start to 2013 with improvement in performance across all key areas of the business.”
“We continue to benefit from the diversity of our portfolio, which gives Amlin exposure to favourable market conditions across a range of insurance and reinsurance classes,” he added.
Shares in the company closed down 0.67 per cent at 431.1p.