Insurer Catlin's 2007 on track after subprime hit

LONDON (Reuters) - Insurer Catlin Group (CGL.L: Quote, Profile, Research) said on Wednesday it is on track for 2007, despite taking a $75 million (36.4 million pounds) hit from subprime-related assets.

"The Group is on track to meet its targets in 2007," said CEO Stephen Catlin in a statement, adding that the subprime writedown would be broadly offset by the positive effect of a largely hurricane-free year.

Analysts expect Catlin to post a full-year pretax profit of $475 million, according to a poll of 11 analysts conducted by the company.

Catlin said it would take the $75 million writedown following a comprehensive review of its assets. Most of its subprime-related assets are CDOs (collateralised debt obligations) and it has been able to sell some of these assets at close to book value.

The book value of its subprime-related portfolio after the sales and markdown is $12 million, it said, out of total cash and investments worth $5.85 billion at September 30.

Rating agency Standard & Poor's said its "A-" ratings on Catlin would not be affected by the writedown.

The Bermuda-based insurer said it did not expect to be hit hard by claims resulting from the subprime crisis, saying it had largely pulled out of providing liability cover for financial institutions and the executives of major firms.

Catlin, the largest player in the Lloyd's of London market following its takeover of rival Wellington last year, said it had gross written premiums for the nine months to September 30 of $2.73 billion, more than double what it wrote on a standalone basis during the same period last year.

(Reporting by Simon Challis; Editing by Paul Bolding)