Insurance firm Amlin has returned to profit after a major loss suffered in 2011 due natural disasters, such as Japanese tsunami, New Zealand earthquake and flooding in Thailand that affected the company to large extent.
The company saw pre-tax profits soar to £184.5m in the six months to 30 June 2012 due to far fewer natural disasters compared with a year ago, when it posted a pretax loss of £192m.
Pointing out its trouble surfaced last year, the underwriter said it made heavy payout in settlements and claims emerged from the natural disasters last year.
The insurer said that it has learnt lessons from the Lloyd’s of London insurer’s wearisome takeover of a business it bought three years ago from the bailed-out Fortis, as reported by the Financial Times.
The FTSE 250 Index listed start up said that it is emerging from setback with "strengthened management team".
The Nederland based Amlin’s continental European business, which comprises ACI and one French business unit, performed 98% in the first six months of the fiscal.
Further explaining the terms, the insurer said it paid out 98% in claims and expenses for every £1 it received in premiums and is an improvement from a loss making 118% during the same period earlier year.
The profit of ACI, which was bought for €350m by Amlin to give it a better foothold in Europe, has got a boost as Amlin has been appointed as the latest Lloyd’s insurer.
The rise in business was largely boosted by catastrophe reinsurance, with an increase of 10% in the US and 16% across the rest of the globe, and UK commercial motor insurance up 10%.
ACI Charles chief executive Philipps was quoted by the newspaper as saying that the firm wouldn’t expect to see that happen again unless there was a reaction to further major events.
"We wouldn’t expect the rate increases that we’ve achieved to fall off a cliff in the short term," Philipps added.