The specialist property and casualty insurer made
Results were bolstered by a record net underwriting contribution of
"Our diversified portfolio - by region and by product - allows us to see business that many of our competitors do not have the opportunity to write," he said. "Using our tested technical skills, we can select the business that we believe is most profitable. It also must be remembered that margins for most classes of business are still strong and that rates for some classes of business are still rising."
Catlin added that the group is looking ahead with confidence. Shares in the insurer rose steeply as the market opened yesterday and maintained a strong increase throughout the day. The share price was up 3.7 per cent at 560p at market close.
ANALYST VIEWS DID CATLIN GROUP PERFORM IN LINE WITH YOUR EXPECTIONS? Interviews by Kate McCann EAMONN FLANAGAN SHORE CAPITAL Catlin's results were better than we and the market had expected but, despite a capital buffer which, at 21 per cent, is above its targeted range of between 10 per cent and 20 per cent, the group remains unwilling to return capital to shareholders. We reiterate our hold recommendation on the stock.
NICK JOHNSON NUMIS Catlin has delivered a good result for 2013, clearly helped by below average catastrophe losses. We continue to think the shares are fairly valued on earnings and our target price increases by 10p to 570p. We recommend a hold rating on stock.
SARAH LEWANDOWSKI ESPIRITO SANTO The rating outlook is certainly more challenging with increased capacity (both traditional and non-traditional) and lower catastrophe losses contributing to increased pressure on rates. However, Catlin believes acceptable margins exist in its portfolio. We remain buyers.
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