Hail storms in Paris and the strong pound conspired to hit Lloyd’s of London insurer Amlin during the first half of the year, it emerged today.
The company said pre-tax profits fell by 8% to £148.5 million in the six months ending June 30. There was a £24.6 million currency loss because a chunk of its revenues are made in the US.
Catastrophe claims were up 52% to £48.9 million. Bad weather in Europe accounted for £25.1 million of these and a tornado in Nebraska £23.8 million.
Chief executive Charles Philipps said: “The underwriting environment has undoubtedly become more competitive across a number of business lines, most notably for catastrophe reinsurance.
"In the absence of material catastrophe activity in the second half, reinsurance markets are expected to remain challenging, but margin potential exists.”
Shares in Amlin fell 2.4p to 445p as it raised its interim dividend by 3.9% to 8.1p. It said it plans to increase its stake in joint venture Leadenhall Capital Partners from 40% to 75%.
The fund manager specialises in insurance-linked securities and is partly owned by its management team.
Philipps added: “With our diversified business model, both by class of business and by geography, we continue to believe that Amlin is capable of delivering healthy, long-term returns to shareholders.”
