The big surprise accompanying a workmanlike performance from Amlin (AML) was a special dividend worth 15p a share. Together with the regular dividend, this equates to a mouth-watering yield of 8.3 per cent.
IC TIP:
Hold
at
509p
Like the other Lloyd's insurers, Amlin last year faced increased competition from an influx of fresh capital from insurance-linked securities. From a minimal presence five years ago, these funds now provide around 11 per cent of global catastrophe reinsurance capacity. This inevitably put downward pressure on premiums as less disciplined underwriters fought to maintain their market share.