Catastrophe-exposed insurance rates rise by double digits: Catlin

HAMILTON, Bermuda—Rates for catastrophe-exposed insurance and reinsurance rose by a weighted average of 10.5% during the third quarter, Catlin Group Ltd. said Monday.

In its interim management statement, Hamilton, Bermuda-based Catlin said that its average weighted premium rates for noncatastrophe business were flat during the third quarter.

CEO Stephen Catlin said Catlin expects rates and conditions for underwriters to improve in many classes of business.

“We believe that fundamental changes in the marketplace are on the horizon as a result of the series of catastrophe losses, several years of falling rates for many classes of business, the challenging investment environment, and the increasing strain on some insurers’ and reinsurers’ balance sheets due to all of these factors,” he said in a statement.

Catlin said it had catastrophe losses of about $670 million for the first nine months of this year.

During the same period, it posted gross written premiums of $3.68 billion, up 12% compared with the first nine months of 2010.