Business
Trading Update
Trading Update.
About this update from Aston Martin Lagonda Global Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 6022L Amlin PLC 02 August 2011 \n \n\n \n \n \n \nAMLIN PLC\nPRESS RELEASE\nFor immediate release\n2nd August 2011 \n \n \n \nTRADING UPDATE\n \nFollowing completion of its second quarter reserve review, it has become clear that Amlin is unlikely to meet previous profit expectations for the year ending 31 December 2011. Overall, Amlin estimates that, for the first half year, it is £65 million below its previous pre tax expectations and £53 million below after tax expectations. \n \nDuring July Amlin received a material increase in notified claims from a client relating to the New Zealand Christchurch Earthquake in February 2011, bringing total catastrophe claims reserved in the six months ended 30 June 2011 to £314 million. This was partially offset by a reduction in estimated losses from the Japanese earthquake in March 2011 and for Amlin London this net deterioration was largely absorbed by its reinsurance programme. However Amlin Bermuda has had to increase its net major catastrophe reserves and this has contributed £27 million to the shortfall in profit expectations. \n \nACI's performance has also been below our expectations as a result of a higher than normal frequency of large claims advices on its property and marine accounts, particularly in June 2011. Consequently the result for ACI for the first half of 2011 is £28 million below our previous expectations. \nImproving the performance of ACI, particularly its marine account, has been an area of major focus since its acquisition in 2009 and, given the improving trends which were becoming apparent earlier in the year, this is particularly disappointing. Amlin believes that ACI has taken and continues to take the right actions to improve performance and would not ordinarily expect a recurrence of the same extent of claims activity. \n \nSyndicate 2001 released reserves of £6 million in the first half, which is approximately £10 million below Amlin's normal expectations. This was predominantly caused by Amlin UK which had modest reserve deteriorations of...