Financial highlights

Income statement

  • Robust performance delivered despite impact of major hurricanes and economic crisis.
  • Profit before tax of £121.6 million (2007: £445.0 million).
  • Return on equity of 7.8% (2007: 37.8%).
  • Excellent combined ratio of 76% (2007: 63%).
  • Positive investment return of 0.6% (2007: 6.6%) despite equity and bond market sell-off.

Balance sheet and capital management

  • Net assets increased 15.6% to £1,216.1 million (2007: £1,052.3 million).
  • Net tangible assets per share increased 14.5% to 236.0 pence (2007: 206.2 pence).
  • Run-off profits from reserves of £114.7 million (2007: £109.0 million).
  • £27.6 million of shares purchased through share buy-back programme.
  • Dividend (paid and proposed) increased by 13.3% to 17.0 pence per share.

Outlook

  • Strong capital position to support growth.
  • Net unearned premium reserves of £518.4 million (2007: £474.3 million).
  • Premium rate increases now expected in a number of key classes.
  • Continued prospects for strong dividend growth.

 

 

2008
£m
2007
£m
2006
£m
2005
£m
2004
£m
Gross written premium
1,034.0
1,044.7
1,113.8
993.5
945.6
Net written premium
915.7
938.3
1,013.5*
829.3*
790.2*
Net earned premium
913.5
972.3
973.9*
822.1*
722.4*
Underwriting contribution
222.2
355.0
267.9
137.1
106.6
Investment contribution
18.0
157.0
115.1
90.9
52.1
Other costs
118.6†
67.0
40.3
41.3
39.0
Profit before tax
121.6
445.0
342.7
186.7
119.7
Return on equity
7.8%
37.8%
34.0%
29.6%
21.0%
Net assets
1,216.1
1,052.3
936.4
784.8
449.2
Net tangible assets
1,105.9
983.3
870.4
718.8
383.2
Per share amounts (in pence)
 
 
 
 
 
Earnings
17.1
66.3
50.4
34.3
20.7
Net assets
259.5
220.7
175.6
148.7
113.7
Net tangible assets
236.0
206.2
163.2
136.2
97.0
Dividend under IFRS**
16.0
20.8***
10.4
9.0
4.7
Dividends (paid and proposed final)
in respect of the calendar year**
17.0
15.0
20.0***
10.2
8.0
Capital return via B shares
–
22.4
–
–
–
Group operating ratios
 
 
 
 
 
Claims ratio
55%
36%
41%
57%
50%
Expense ratio
21%
27%
31%
25%
32%
Combined ratio
76%
63%
72%
82%
82%
Amlin Bermuda Ltd combined ratio
83%
46%
48%
–
–
Syndicate 2001 combined ratio
73%
69%
76%
82%
82%

*Excluding premiums associated with the reinsurance to close of our increased share of capacity.
**All per share dividends are the actual dividends paid or proposed for each share in issue at the time.
***Includes special dividend of 8.0p per share.
† Includes non-underwriting foreign exchange losses of £56.6 million.

Claims ratio is net claims incurred divided by net earned premium for the year. Expense ratio is underwriting expense incurred divided by net earned premium.
The expense ratio does not include expenses that have not been attributed to underwriting or finance costs. Combined ratio is the total of the claims and expense ratios.

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