Kin Group Regulatory News (KIN)

9 Mar 2006 07:01

Kiln PLC09 March 2006 Kiln plc Syndicate results and updated forecasts R J Kiln & Company Ltd, the Lloyd's managing agency wholly owned by Kiln plc,today releases the final result for its managed syndicates for the 2003 year ofaccount, updated forecasts for the 2004 year of account and initial forecastsfor the 2005 year of account. Please note that all forecasts are based on exchange rates of US$1.72 and C$2.01with previous forecast rebased accordingly. 2003 account results The results for the closed 2003 year of account on all four Kiln syndicates areshowing profits broadly in line with those released in the trading update thatthe company issued in December 2005 for the forecasts as at September 2005.Flagship Syndicate 510, which accounts for over 75% of Kiln's managed capacity,delivered a profit of 24.9% for the 2003 year of account. This excellent profitis attributable to high prices combined with a benign claims environment acrossall major classes of business which made 2003 a year that fulfilled its promisefor all Kiln managed syndicates and their supporting Names. The 2003 year of account results for an unlimited Lloyd's Name on Kilnsyndicates are compared in the table below with the most recent forecasts issuedin December last year. Syndicate Capacity Result (% of capacity) Previous forecast as at September 2005 £m % % 510 483 24.9 20.7 to 25.7 557 55 39.2 36.5 to 41.5 807 87 15.0 12.4 to 17.4 308 4 6.7 8.9 to 11.9 2004 year of account forecasts The three largest Kiln syndicates were affected by the hurricanes of 2005, andnow include losses incurred as a result of Hurricane Wilma. Syndicate Capacity 2004 year of Previous account forecast as at forecast range September 2005 £m % %510 507 3.5 to 8.5 4.0 to 9.0557 55 4.1 to 9.1 4.6 to 9.6807 113 1.4 to 6.4 4.5 to 9.5308 5 (6.5) to (1.5) (3.3) to 1.7 2005 year of account forecasts The main reason behind the forecast losses on Kiln's three largest syndicateswas the US hurricane season, making 2005 the worst year for catastrophic loss onrecord by a considerable margin. Catastrophe losses apart, however, thedevelopment of attritional and individual large losses for the year isperforming very much in line with expectations. The initial estimates for Kiln's 2005 year of account are set out below. In thelight of the large amounts of premiums yet to be earned for the year, thesefigures should be regarded as preliminary only and are subject to no significantcatastrophes or other adverse developments occurring in the future which mayhave a detrimental effect on the Kiln portfolio. Syndicate Capacity 2005 year of account forecast range £m %510 546 (10.6) to (5.6)557 48 (30.4) to (25.4)807 100 (11.0) to (6.0)308 10 2.0 to 7.0 9 March 2006 Enquiries: Kiln plc 020 7886 9000Edward CreasyRobert ChaseKate Rogers College Hill 020 7457 2020Roddy Watt Notes to Editors: Kiln, established in 1962, is an international insurance andreinsurance underwriting group that specialises in complex, unusual risk. Kilnplc is listed on the London Stock Exchange. Its operating subsidiary, R J Kiln &Co Limited has £803 million of capacity under management for the 2006 year ofaccount, making it one of the largest agencies trading in the Lloyd's of Londoninsurance market. A recognised leader in each of the five main business areas in which itoperates: reinsurance, accident and health, aviation, marine and special risks,and property, Kiln enjoys a security rating of 'A' (Strong) assigned to Lloyd'sby Standard and Poor's. This information is provided by RNS The company news service from the London Stock Exchange