LONDON (Alliance News) - Amlin PLC on Monday reported that profit in the first half was hit by a change to its accounting for the seasonality of catastrophe reinsurance earned premium, with the effects to unwind in the remainder of 2015. The FTSE 250 specialty insurer and reinsurer said it made a GBP143.3 million pretax profit in the six months to the end of June, down from GBP148.5 million in the corresponding period the prior year. Amlin increased its interim dividend by 3.7% to 8.4 pence per share. "This is a solid set of results in the more challenging market which prevails. Were it not for our change in accounting for the seasonality of catastrophe reinsurance earned premium, profit before tax would have been considerably ahead of the first half of last year. This will unwind in the second half," Chief Executive Charles Philipps said in a statement. "I am also pleased with the substantial progress which has been made following our reorganisation last year. New opportunities exist and efficiency gains are being realised," Philipps added. Gross written premium increased to GBP2.01 billion from GBP1.89 billion, while net earned premium decreased by 7.5% to GBP1.03 billion due to seasonal risk profiling of windstorm premium, changes in mix in the reinsurance account, and multi-year contracts. Amlin's combined ratio, a measure of underwriting profit, worsened in the half, increasing to 91% from 87%. A ratio below 100% indicates underwriting profitability, while a ratio above that level indicates loss. The insurer's investment return improved to 2.2% from 1.3%. By Samuel Agini; samagini@alliancenews.com; @samuelagini Copyright 2015 Alliance News Limited. All Rights Reserved.
Amlin PLC announced today a pretax profit of £8.4 pencem for the first six months to the end of June, down from £148.5m year on year, due to the insurance firm being hit by a change to its accounting for the seasonality of catastrophe reinsurance earned premium.