Amlin reports decline in premiums

by David Masters

Story link: Amlin reports decline in premiums

Lloyds of London insurer Amlin has reported a 7.5% on year fall in gross written premiums for the ten months ending 31st October 2008.

Gross written premiums for the period before the deduction of brokerage were £904.1 million, down from £977.2 million in the first ten months of 2007.

Renewal rate reduction during the ten month period was 7.8% with a renewal retention rate of 84.5%.

The fall in premiums was attributed to a sluggish reinsurance ratings environment and a difficult financial environment.

Amlin also reported investment return for the month of October at a loss of 1.5%, blamed on a heavy fall in equity markets.

However, the rising strength of the US dollar against British sterling has helped to boost the firm’s financial position.

Furthermore, as a reinsurer, it expects its rating to improve significantly over the coming months.

In a statement, the company said it anticipates an increasing demand for reinsurance as insurers become unable to retain their exposures.

As such, Amlin believes rating levels for reinsurers are likely to rise.