Catlin's profits plummet after a string of disasters

One of the worst spates of natural catastrophes for 30 years and BP's Deepwater Horizon disaster in the Gulf of Mexico, sent annual profits tumbling at insurer Catlin.

It racked up $218 million (£135.8 millon) in catastrophe losses during 2010, compared with none the year before.

More than 260,000 people died last year in 950 separate natural disasters, well above the 10-year average of 785.

Bermuda-based Catlin also took a $98 million hit on "large single-risk losses", around half of which was accounted for by the Deepwater explosion which claimed 11 lives last April.

Pre-tax profits fell 33% to $403 million, while chairman Stephen Catlin said flooding which devastated Brisbane is likely to add $50 million to this year's catastrophe bill.

But Catlin's shares rose 13p to 398.5p despite the fall in profits as the results beat City hopes, bolstered by international business, which is now contributing nearly half of underwriting profits, and better than expected investment returns.

Despite the catastrophes, the share of premiums paid out in claims and expenses rose by one percentage point to 90%.