Catlin Group Ltd

Catlin’s underwriting result deteriorated by 43.5% from a profit of $803.09mn in 2007 to a profit of only $454.0mn in 2008. The group was equally hard hit on the investment front where total returns for 2008, was a loss of $91.0mn compared to a return of $211.1mn in 2007. In addition, Catlin’s shareholders’ funds was impacted by an investment related ‘comprehensive loss’ charge of $325.0mn. The group does not provide a great deal of detail on this figure, but the category tends to relate to unrealised investment asset impairment or currency adjustments losses which might or might not be recoverable in the medium to long term

Two thousand and eight was a hugely challenging year for the Catlin group, the specialty insurer and reinsurer which, even in the context of its multinational peer group, comes across as a company which is unapologetically global in its orientation. Although Catlin is incorporated in Bermuda and uses the US dollar as its accounting currency, the group’s shares are listed on the London Stock Exchange. Catlin generates the vast bulk (around 85.0%) of its gross premium income in the London market, respectively through Catlin Syndicate which manages the largest syndicate in the Lloyd’s market, and Catlin UK, its smaller Financial Services Authority regulated business. Its other two main underwriting platforms are Catlin Bermuda and Catlin US.