Insurer Amlin shrugs off freefall fears

LLOYD'S of London underwriter Amlin today hit back at doom-mongers predicting a dramatic drop in insurance premium rates across the market as it posted a 17% surge in interim profits.

Chief executive Charles Philipps rubbished talk of a freefall and said Amlin was still benefiting from good trading conditions.

Renewal rates for the group, which writes property, marine and aviation cover, were down just 2.5% this summer. 'I don't call 2.5% freefall,' he said.

Amlin is upping the interim dividend threefold to 3p, and aims to pay out 30% of distributable earnings over the full year.

Many observers believe the Lloyd's market is already approaching the soft part of the insurance cycle as rates in aviation and property begin to drop back from post-9/11 highs.

Amlin is cutting its underwriting capacity by 15% next year in line with its rivals. Philipps estimates Amlin will suffer a loss of between $30m (£16.9m) to $40m from Hurricane Charley and expects claims from the weekend's Hurricane Frances to be lower.

Pre-tax profits in the six months to 30 June rose £10.9m to £74.2m and the value of written premiums climbed nearly 7% to £709.7m.