|
 |
|
|
|
|
|
 |
|
|
Dear fellow investor
Over the past three years we have been developing
and implementing our strategy but delivery is ultimately
what counts, and I am delighted that the results for
2003 confirm Amlin’s ability to generate an excellent
return on the capital you have invested in the business.
ROGER TAYLOR
CHAIRMAN
|
|
|
|
|
CHAIRMAN'S STATEMENT
Outlook remains positive
Underwriting conditions over the past two years have been
exceptional, as reflected in our results, and underpin our
expectations for a further strong result for 2004.
The reaction of the world’s insurance markets to the terrorist
atrocities in September 2001 meant that it was inevitable
that rates would stabilise and, in those classes that experienced
the greatest rises, come off their peak. Even though this has
happened, with a normal level of losses, we continue to expect
2004 to be another very good underwriting year and, if past cycles
are repeated, for 2005 also to be good. On this basis we can see
prospects for good returns on capital as far ahead as 2006.
However, there are reasons for optimism beyond this. The
continuing industry dynamics of adverse loss reserve development,
particularly arising from accelerated asbestos settlements (to which
Amlin is thankfully not exposed), a subdued outlook for bond returns
and an increased scarcity of good quality security, reinforces our
belief in the positive medium term outlook. These factors will make
it more difficult for many in the industry to grow their balance
sheets and increase capacity.
Future strategic direction
The shape and potential of the business today is very different to
the period before 2000 when the Board approved management’s
five year strategic plans to 2005. In October 2003 the Board
carried out a detailed review of progress made and concluded that,
in very many respects, we had already reached the goals we had
set for 2005.
With 100% of our Syndicate’s capacity under our belt, a business
which is a true leader in Lloyd’s by many measures, and financial
targets on track to being met or exceeded, we are now developing
a strategic plan for the next period of the Company’s development.
We do not envisage that this will result in dramatic change to the
core attributes that have contributed to our success. Rather it will
build upon our strengths, ensuring that we are well positioned to
trade profitably through the next down cycle and able to repeat the
significant growth achieved in the current hard market. In this we
intend to explore and challenge how best we continue to build
shareholder value.
Back to top
Board retirements
I would like, on behalf of the Board, to express our thanks to John
Kennedy and John Sanders who will be retiring as Directors at this
year’s Annual General Meeting. Both Johns joined the Board in
1993 on the creation of the Company as a then investment trust,
and have provided tremendous input and support through the
challenges and changes faced over the past 10 years.
I would also like, on behalf of the Board, to acknowledge the
contribution and enthusiasm to Amlin provided by John Stace,
who is also retiring as a Director at this year’s Annual General
Meeting. John was the Company’s first Chief Executive and was
integral to the merger of Angerstein with Murray Lawrence.
I wish all our retiring Directors well for the future and am pleased
that they have seen the success of the strategy put in place in
2000, to which they contributed.
The Board intends to recruit one new independent non-executive
Director.
A team committed to delivery
With each year that has passed, it is pleasing to see the senior
management team working better and better together in an effort
to build a sustainable, winning business. Objectives have and are
being met, spurred on by a tremendous sense of commitment to
deliver. We owe the team, led so ably by Charles Philipps, and
all employees our thanks and congratulations on achieving, yet
again, an impressive result and a Company in excellent shape
for the future.
|
|
|
|
|
|
