Lloyd’s of London insurer Amlin swung back to profit in the first half of 2012 as the spate of natural disasters that pushed it into the red last year drove a rise in premiums.
The group reported a pre-tax profit of £184.5 million and said it had incurred no major catastrophe losses this year.
The results are in stark contrast to the first six months of last year, when it plunged £192.3m into the red in the face of claims relating to floods, earthquakes and the Japanese tsunami.
Amlin said it increased premiums across more than four fifths of its reinsurance portfolio, with average renewal rate increases of 4.2 per cent. “As expected, in the aftermath of 2011 loss activity, reinsurance rates increased significantly at the start of the year,” it said, adding that margins for catastrophe reinsurance remained at “near peak levels”.
It said that its UK commercial insurance business had also seen improvement, with rates charged by its fleet motor arm climbing 10 per cent. A more competitive market kept rates steady in continental Europe.
Nick Johnson, and analyst at Numis, said: “These results are a welcome return to form for Amlin, with the large reinsurance portfolio delivering strong profits.”
The firm hiked its interim dividend to 7.5p a share, from 7.2p last year.