Catlin trumps forecasts after a disastrous year
PROFITS at insurer Catlin plummeted by 82 per cent in 2011 after it was forced to absorb nearly $1bn in catastrophe-related claims.
The firm, operator of the biggest syndicate at Lloyd’s of London, announced a year-end profit of $71m, down from $406m in 2010.
This still beat analysts’ expectations, reflecting the strength of Catlin’s reinsurance protection programme, which reduced the final impact of $961m in catastrophe claims to just $678m.
“In a year of substantial industry losses, we feel this is a commendable result,” Oriel Securities analyst Marcus Barnard wrote in a note.
Catlin said it had raised prices by five per cent on average in January as customers renewed their policies, pointing to better revenue for 2012.
Shares closed up 5.3 per cent at 449p, one of the biggest risers in the FTSE 250.