LONDON (ShareCast) - Insurer and underwriter Catlin said its underwriting result has benefited from the reinsurance synergies provided by the Wellington acquisition.

Gross premiums written were virtually unchanged at $1.2bn, in line with previously indicated expectations.

Net premiums written edged higher to $0.8m from $0.7m in the first quarter of 2007, reflecting the benefits from the integration of Wellington Underwriting into the group.

An 8% reduction in the value of gross premiums written in London was offset by excellent growth at Catlin’s international offices, particularly in Europe, while Catlin Bermuda achieved modest premium growth.

Premiums underwritten by Catlin US during the first quarter were slightly below expectations, though business is expected to pick up as the year goes by.

Market conditions became even more competitive in February and March, with the year-on-year decrease in average premium rates accelerating to 5% in the first quarter from a decline of 4% in January alone.

Claims activity increased during the first quarter but losses were within the group’s budgeted assumptions.

Investments and cash rose 2% to $6.1bn in the first quarter from $6bn at the year end. Year-on-year, investments and cash rose 17%.

“Whilst we expect that average weighted premiums rates will continue to decrease absent a catastrophic event, margins for most classes of business should remain good,” said Stephen Catlin, chief executive.

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