Amlin booming as premiums soar
SOARING premiums have helped Lloyd's member Amlin to a booming start to 2002, leading the group to predict its revenue will double this year to £1bn.
Chief executive Charles Philipps forecast premiums, which have jumped by up to 75% in the property industry this year, would rise further in the second half as underwriters run out of capacity.
The insurer, which owns 73% of its Lloyd's syndicate, recorded a 41% rise in gross premiums in the first quarter to £380m. Philipps said it was holding back some capacity to take advantage of the expected upturn in rates later this year.
Amlin lost £63.9m as a result of the 11 September attacks on the US but has since raised £43m through a rights issue. It has also abandoned a dividend for 2001, though it said today it expected to resume the payment for 2002.
Philipps also said Amlin would have to raise further funds in the longer term to take out the remaining Names in its syndicate, but declined to estimate the likely cost of such a move.
The cost of the US attacks left Amlin with an £81.5m pre-tax loss for 2001 compared with a £26.4m deficit previously. The operating profit before allowing for the 11 September costs was £2.2m against a £5.9m loss in 2000.
