User:Iskaboo
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| Company type | Public (LSE: CGL) |
|---|---|
| Industry | Insurance/Reinsurance |
| Founded | 1984 as Catlin Underwriting Agencies Limited |
| Headquarters | Hamilton, Bermuda |
Key people | Sir Graham Hearne (Non-Executive Chairman), Stephen Catlin (CEO) |
| Products | Specialty Insurance (including Energy, Aviation/Aerospace, Property, General Liability, Professional Liability.Indenity, Marine Hull/Liability, Cargo and Specie) and Reinsurance (Property, Casualty, Marine & Aviation) |
| Revenue | Gross Written Premiums - US$3.36 billion(2007) |
| Net Income Available to Common Shareholders US$461.7 million (2007) | |
Number of employees | 1,100 (2008) |
| Website | www.catlin.com |
Catlin Group Limited (LSE: CGL) is a Bermuda-based specialty insurance and reinsurance company. Catlin operates four underwriting platforms - the Catlin Syndicate at Lloyd's, Catlin Bermuda, Catlin UK and Catlin US - as well as a network of international offices. Catlin, which writes more than 30 classes of insurance and reinsurance, is a member of the FTSE 250 Index.
Structure
[edit]Underwriting Platforms
[edit]Catlin operates four underwriting platforms. Operating multiple operating platforms in different insurance markets increases the diversity of the business the Catlin underwrites.
The Catlin Syndicate at Lloyd's (Syndicate 2003) is the Catlin Group's oldest and largest operating platform. The Syndicate, which has a total premium capacity of £1.25 billion for the 2008 underwriting year, is the largest syndicate at Lloyd's based on premium capacity. It is a recognized leader of business at Lloyd's across nearly all of classes of business the syndicate underwrites. Its 2007 gross premiums written amounted to US$2.54 billion.
Catlin Bermuda (Catlin Insurance Company Ltd.) began underwriting in 2003 and is now a recognized player in the growing Bermuda insurance marketplace. Catlin Bermuda specializes in underwriting property reinsurance and casualty reinsurance. It also underwrites political risk and terrorism insurance as well as structured risk products. It also provides reinsurance support to the other Catlin Group underwriting platforms. Gross premiums written in 2007 amounted to US$312 million.
Catlin UK (Catlin Insurance Company (UK) Limited), established in 2004, specializes in underwriting property and casualty insurance for UK businesses and professionals. It also underwrites classes of business that are also underwritten by the Catlin Syndicate. Catlin UK wrote US$440 million in gross premiums in 2007.
Catlin US is the Catlin Group's newest underwriting platform and includes all of Catlin's operations based in the United States. Catlin US, which writes both insurance and reinsurance coverages, underwrites business on behalf of both US-domiciled admitted and non-admitted insurance companies as well as the Catlin Syndicate and Catlin UK. Its total gross premium volume (including business written in the US on behalf of other Catlin platforms) amounted to $314 million in 2007.
International Offices
[edit]Catlin opened its first offices outside of London in 1989 when it established offices in Singapore and Kuala Lumpur, Malaysia, and acquired an underwriting agent in the United States with offices in Houston and New Orleans.
Since that time, Catlin has greatly expanded its international network of office. The Group maintains that these offices serve to diversify Catlin's underwriting portfolio as the offices underwrite regional business that would not normally be written at Lloyd's or one of its other underwriting platforms.
Apart from the offices in Singapore and Kuala Lumpur, Catlin currently operates international offices in Cologne, Munich, Paris, Barcelona, Zurich, Innsbruck, Antwerp, Genoa, Guernsey, Hong Kong, Shanghai, Tokyo, Sydney, Toronto, Calgary and Sao Paulo.
In the UK, Catlin operates offices in London, Glasgow, Leeds, Birmimgham, Tonbridge and Ipswich.
In the United States, Catlin US has offices in Atlanta, Chicago, Cleveland, Columbus, Hartford, Houston, Lexington, New Orleans, New York, Paramus, Philadelphia, San Antonio, Scottsdale, Sonoma, Summit and Walnut Creek.
History
[edit]Catlin Underwiting Agencies Limited (CUAL) was established as an underwriting agency at Lloyd's of London in 1984 by Stephen Catlin, who remains today as chief executive of the company. Catlin's first Lloyd's syndicate (Syndicate 1003) began underwriting in 1985 on behalf of Lloyd's Names (private individuals who invested in the Lloyd's market) with a premium capacity of £6 million [1].
Syndicate 1003 grew successfully during its first years of operations, outperforming the Lloyd's market as a whole, particularly during the period from 1988-1992, when the Lloyd's market posted huge financial losses [2].
By its 10th anniversary in 1995, Syndicate 1003 managed by CUAL had increased its premium capacity to £170 million. During that year, the company received a substantial private equity investment from Western General Insurance Company of Bermuda, which was controlled by the Pritzker family. The investment allowed Catlin to establish a second Lloyd's syndicate (Syndicate 2003), which wrote coverage in parallel with the established Syndicate 1003. While Syndicate 1003 continued to write coverage on behalf of capital supplied by traditional Lloyd's Names, Syndicate 2003 was backed by capital solely supplied by Catlin.
In 1999, Catlin incorporated a holding company in Bermuda, first called Catlin Westgen Holding Limited and later renamed Catlin Group Limited. Catlin was the first of the traditional Lloyd's of London syndicates to establish a holding company in Bermuda, a strategic move that was later copied by several other companies that own or manage syndicates at Lloyd's. [3].
Following the World Trade Center tragedy in 2001, Catlin expanded its operations and strengthened its balance sheet. In 2002, Catlin raised US$532 million in private equity funds from a consortium of investors (including Western General). It was the only company operating at Lloyd's to receive private equity financing in the wake of 9/11; most of the funds that were injected into the insurance market were directed to start-up insurance and reinsurance companies in Bermuda [4].
Catlin shares were listed on the London Stock Exchange in 2004. The Group's initial public offering, which was several times oversubscribed, raised nearly $200 million in new capital [5].
In October 2006 Catlin announced that it inteded to acquire Wellington Underwriting plc, which managed one of the largest syndicates at Lloyd's and had extablished an operation in the United States. The offer price -- 0.17 shares of Catlin common stock and 35 pence in cash for each Wellington share -- represented a 25 per cent premium over the Wellington share price on the day prior to the announcement that Catlin and Wellington were in discussions.[6] The acquisition was completed on 18 December 2006. The Wellington acquisition significantly increased the size and scale of the Catlin Group. In addition, the merger of Catlin's and Wellington's Lloyd's syndicates created the largest syndicate (Syndicate 2003)in the marketplace.
Classes of Business
[edit]Catlin underwrites more than 30 classes of insurance and reinsurance.
The classes of insurance underwritten by Catlin incude property, general liability, professional liability/indemnity, energy, aviation, marine hull and cargo, accident and health, specie, satellite, equine and livestock, product recall, construction and engineering, motor fleet, and inland marine.
The types of reinsurance underwritten by Catlin include property (both catastrophe and pro rata), casualty, marine and aviation, and excess of loss.
Financial Performance
[edit]Catlin underwrote gross premiums written amounting to US$3.36 billion during 2007, an increase of 24 per cent. Net income available to common shareholders amounted to US$461.7 million, an 8 per cent increase. The company's return on equity for 2007 was 20.8%.
Ratings
[edit]All of Catlin's underwriting units have been assigned a financial strength rating of 'A' (Excellent) by A.M. Best. Standard & Poor's has assigned an insurer financial strength rating of 'A-' (Strong).
External links
[edit]References
[edit]- ^ [1]"Listing Particulars Relating to Catlin Group Limited’s Global Offer of Common Shares"
- ^ [2]"Listing Particulars Relating to Catlin Group Limited’s Global Offer of Common Shares"
- ^ [3]"Lloyd's Under Pressure as Bermuda Exodus Gathers Pace"
- ^ [4]"Catlin Westgen Group Limited Announces $532 Million Capital Raising"
- ^ [5] "Catlin IPO to Raise $200 Million"
- ^ [6]Catlin Group 2006 Annual Report & Accounts