Operating & Financial Review

Non-marine

The Non-marine division remains the Group’s largest single business segment. The business written is a blend of classes which are exposed to catastrophic loss (eg catastrophe reinsurance), large claim events (eg aviation reinsurance) and attritional claims (auto and casualty).

Gross written premium was virtually unchanged at £554.6 million (2005: £557.0 million). Overall renewal rates increased by 11.5% but the underlying rate movement picture diverged markedly. There was little change to rates or small reductions in most attritional classes but increases of 28% in US catastrophe reinsurance as the market responded to the 2005 events.

Net written premium, before reinsurance to Amlin Bermuda is deducted, increased by 8.4% to £492.4 million, with less retrocessional reinsurance purchased in 2006.

The division’s combined ratio was 66% (2005: 97%). The improvement reflects the lack of catastrophic losses on a relatively higher net premium base. Reserve releases amounted to £21.9 million (2005: £23.7 million).

© Copyright Amlin 2006