Amlin share price dip as profits drop due to challenging marketplace
Lloyd’s insurer Amlin saw shares fall by 4.63 per cent yesterday, after reporting declining profits for 2014.
Profit before tax fell from £325.7m in 2013 to £258.7m, despite gross written premiums increasing from £2.47bn to £2.56bn. Combined operating ratio worsened, from 86 per cent to 89 per cent.
The provider increased its dividend to 27p from 26p, and also announced a special dividend of £75m, or 15p per share.
Charles Philipps, Amlin chief executive, said the company had produced “a solid result in a more competitive trading environment”.
“The strength of our franchise, underwriting expertise and ability to adapt are powerful advantages as the market evolves,” he commented.
“Amlin is well positioned to take advantage of the opportunities created by the pace of change in our markets, and has an excellent track record of cross-cycle underwriting discipline. We continue to believe that we can deliver attractive returns on equity.”