AMLIN H1 PROFITS INCREASE NEARLY 250%, BUT EXPENSES RISE

Lloyd’s insurer Amlin has posted interim profits of £64.8m, up from £17m for the same period last year, as a benign loss environment saw its claims ratio fall to 51% from 73%. However, the expense ratio rose four points to 32%. The interim dividend was increased to 0.85p from 0.75p. The insurer revealed that it had achieved a rate rise of 6.9% on renewals for the first six months, with casualty classes continuing to experience improving rates. Amlin noted that airlines, property risks, energy and the war account had experienced some rate pressure, “but remain at healthy levels”. The day before, UK-based reinsurance broker Benfield chief executive Grahame Chilton had estimated property rates to be off by about 5% in the US and 10% globally. Amlin said that Lloyd’s new franchise regime, together with a greater focus on technical pricing, could lead to the hard market enduring “for longer than previously anticipated”. The company confirmed that it expected to maintain Syndicate 2001’s regulatory capacity at around £1bn for 2004.