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OPERATING AND FINANCIAL REVIEW / THE COMPANY / VISION, STRATEGY, DELIVERY
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| NEW PHASE OF THE INSURANCE CYCLE |
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The insurance rating cycle, having reached a
plateau in the first part of 2004, is now into a
new phase during which we anticipate a
softening of rates and terms. While this has
already started, for now rates remain at
acceptable levels and we believe that we will
be capable of generating a good return.
There are signs of increased discipline in many
quarters, although not all. We are hopeful that
management in other firms will, as we intend
to, place a greater focus on maintaining
margins which reflect the risk assumed rather
than on growing senselessly.
At Amlin, we expect to downscale our business
if margins become unacceptable.
Through this next phase our strategy is
intended to deliver year on year growth in
net assets per share. We also anticipate very
strong free cash flow over the next several
years. This provides scope for the larger
dividends which we are now paying and the
return of surplus capital which, when combined
with more modest growth in net assets per
share, should help to continue to deliver a
good positive total shareholder return.
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| PEER GROUPS |
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Lloyd’s
Atrium
BRIT
Beazley
Catlin
Chaucer
Cox
GoshawK
Hardy
Highway
Hiscox
Kiln
SVB
Wellington |
North American/
Bermudian
ACE
AIG
Chubb
Everest Re
IPC
Markel Corp
Partner Re
PxRe
Renaissance Re
St Paul Travellers
Transatlantic Re
White Mountains
XL Capital
|
European
AXA
Hannover Re
Munich Re
RSA
Scor
Swiss Re
ZFS |
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