Catlin reports US$27.7 million in annual profits

Catlin Group Ltd. recently raised approximately US$70 million from a share placing, indicating strong business performance despite an 84% decrease in profits due to last year’s catastrophic hurricane season.

Pretax profits for 2005 dropped to US$27.7 million from US$173.9 million. However, Catlin reports total sales rose to US$1.28 billion in 2005 from US$1.22 billion the previous year.

The drop in profits is a result of anticipated claims losses of US$333.5 million as a result of Hurricanes Katrina, Rita and Wilma.

Nevertheless, Catlin reports the catastrophic losses have led to an increase in premium rates by an average of 9%. It has also caused increase in capital investment, in order to contribute to capitalizing on the stronger market.

Catlin reports it hopes to raise US$150 million to take advantage of market conditions.

The Bermuda-based insurer is paying a final dividend of 10.1 pence per share thus giving a total of 15.5 pence for the year, compared to 12.4 pence last year, a 25% increase.