Post Online - Insurance prices to drop by 10% by end of 2008 – Stephen Catlin

Post Online - Insurance prices to drop by 10% by end of 2008 – Stephen Catlin: "Insurance prices to drop by 10% by end of 2008 – Stephen Catlin

Insurance prices will drop by 10% by the end of 2008 if it is still another light catastrophe year, Stephen Catlin has said.

“We felt that rates would be down by 10% at the end of 2008 and I can’t see the downwards trend stopping until we have an event,” Mr Catlin said in an interview with Reinsurance. “We’re seeing rates for wholesale business in the London market decreasing more rapidly than retail business,” he said.

“Rates for business written by Catlin in the US and other markets have kept comparatively higher due the orientation to retail business.”

For the 2008 renewals season Catlin’s UK-originated gross written premiums in the London market fell by 7%, although there was strong growth in the Bermuda, Catlin US and other international offices.

He added in a statement that he expected gross premium for the group’s Catlin Syndicate UK business to decrease slightly during 2008.

Earlier today the Bermuda-headquartered (re)insurer reported Catlin reported an 8% increase in net income to $462m, with a 24% jump in gross premiums written to $3.4bn. The combined ratio fell to 84% from 87%."