Catlin reports $27.7 million in annual profits

Catlin Group Ltd. has raised approximately $70 million from a share placing indicating strong business performance despite a decrease in profits of 84% due to last year’s catastrophic hurricane season.
Pretax profits for 2005 dropped to $27.7 million from $173.9 million last year. However, Catlin reports that total sales rose to $1.28 billion in 2005 from $1.22 billion the previous year.
The drop in profits is a result of anticipated claims losses of $333.5 million as a result of Hurricanes Katrina, Rita and Wilma.
Catlin however reports that the catastrophic losses have led to an increase in premium rates averages of 9% and incited an increase in capital investment in order to contribute to capitalizing on the stronger market.
Catlin reports that it hopes to raise $150 million in subordinated date 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.