The worst floods to hit Europe in a decade dented profits at Amlin, the Lloyd’s of London insurer, during the first half of the year.
Downpours in central Europe left the company with £32.2m of catastrophe losses in the period. The floods that followed in May and June are estimated to have caused damage worth tens of billions of euros.
Amlin’s pre-tax profits fell 12.5 per cent to £161.4m as the group took in £1.83bn in premiums, compared with £1.81bn in 2012. But investment returns were £67.4m, and the group’s combined ratio (money paid out in claims relative to that received in premiums) was an impressive 85.5 per cent. Figures below 100 per cent reflect a profit.
“These are a solid set of results which demonstrate a good level of underlying underwriting profitability,” Charles Philipps, the company’s chief executive, said. “There are positive trends which will counteract downward pressure on catastrophe reinsurance rates,
Shares rose 4.9p to 396.2p as Amlin lifted its interim dividend 4 per cent to 7.8p.