Claims worth $218 million in 2010 dented Insurer Catlin’s profit for the year; however, strong performance by its underwriting team helped the company to absorb part of the impact.
The Bermuda based insurance company reported a pre-tax profit of $406 million, lower than $603 million it reported a year earlier.
The company said claims from natural disasters surged in 2010 dues to earthquakes witnessed in New Zealand and Chile and floods in Australia. However, strong underwriting income from non-disaster related businesses helped it offset higher claims. They also helped the company to partly compensate for lower income on investments as it chose to shift money to low risk assets amid global uncertainties. The company’s income from investments dropped sharply by nearly 50% or $207 million in 2010, it revealed.
Worldwide insurance and reinsurance companies are counting their losses on the back of higher claims due to natural catastrophes in 2010.
The world’s biggest reinsurer Munich Re has estimated that claims of $70 billion settled in the first half of 2010 alone exceeded total claims settled in 2009.
Catlin has announced a 6% higher dividend in 2010 to 26.5 pence. The company is currently valued at about £1.4 billion.