Performance
Outlook for 2009
Unearned premium and reserving
Due to the effect of exchange rates and growth in Amlin Bermuda through 2008, the level of net unearned premium rose to £518.4 million (2007: £474.3). Notwithstanding that rates were falling in 2008, through selective underwriting our margins across the business remained good and most of this premium will earn in the first half of 2009. This provides a very good base for 2009 earnings.
Similarly, Amlin’s reserving policy remains prudent and consistent – we reserve with a margin above an actuarial best estimate. If development is normal this means that run off profits will be recognised in following accounting periods. Our track record is consistently strong and we continue to hold a margin, for 2008 and prior underwriting years, of over £200 million above the best estimate.
Top