Amlin boost on rate fears
Amlin smoothed fears over falling rates last week by providing a reassuring assessment of market conditions, while also improving slightly the forecasts on its 2002 and 2003 underwriting forecasts.
In a statement, the quoted Lloyd’s insurer revealed that its average renewal rate reduction in the first half of 2004 was -2.5 percent.
“This modest reduction in rates,” explained Amlin “will continue to allow Amlin to earn excellent returns on Syndicate 2001's underwriting.”
Syndicate 2001 is now forecasting a midpoint return on capacity of 18.5 percent (against 17.5 percent previous forecast) on the 2002 account and a midpoint 15 percent (against 13.5 percent) on the 2003 account.
The insurer also said that there is scope for further forecast improvements if the loss development experience is normal.
Shore Capital analyst Eamonn Flanagan remarked: “We view this as a positive statement, which underlies the on-going resilience in the trading conditions, both in terms of rates and claims.”