Connecticut-based Odyssey Re Holdings Corp. (in which Canada’s Fairfax Financial has an 80 percent stake) reported net income available to common shareholders of $149.7 million, or $2.07 per diluted share, for the quarter ended March 31, 2006, compared to $33.7 million, or $0.49 per diluted share, for the quarter ended March 31, 2005.
Operating income after tax, which excludes investment gains/losses was $57.1 million, or $0.80 per diluted share, for the first quarter of 2006 compared to $17.2 million, or $0.26 per diluted share, for the first quarter of 2005. “Included in first quarter 2006 and 2005 net income available to common shareholders were after-tax net realized capital gains, including capital gains of an equity investee which is included in net investment income, of $92.6 million and $16.5 million, or $1.27 and $0.23 per diluted share, respectively,” the bulletin noted.
Results for the first quarter of 2006 are summarized as follows:
— Gross premiums written of $592.8 million, a decrease of 12.0 percent over first quarter 2005
— Net premiums earned of $553.5 million, a decrease of 1.9 percent over first quarter 2005
— Combined ratio of 91.8 percent, compared to 100.3 percent for the first quarter of 2005
— Net investment income (excluding realized capital gains of an equity investee) of $59.5 million, an increase of 49.5 percent over first quarter 2005
— Total invested assets were $6.4 billion, an increase of 7.9 percent over December 31, 2005
Gross premiums written for the three months ended March 31, 2006 were $592.8 million, a decrease of 12.0 percent compared to $673.5 million for the three months ended March 31, 2005. The change was attributable to a 16.2 percent decrease in the Company’s worldwide reinsurance business and a 1.6 percent decrease in specialty insurance business. Net premiums written for the first quarter of 2006 were $536.0 million, a decrease of 12.1 percent over first quarter 2005 net premiums written of $609.5 million.
Commenting on the first quarter, President and CEO Andrew A. Barnard stated: “During the quarter, we achieved solid underwriting and investment performance, resulting in 7.7 percent growth in book value per share. As the year progresses, we will continue to optimize our portfolio mix to capture the most attractive return opportunities, which is expected to lead to lower overall reinsurance premiums. The property market is providing many new attractively priced opportunities, although we remain measured in the amount of aggregate exposure we are prepared to assume.”
The full report, additional comments and a replay of the Webcast held Friday, April 28 may be obtained on the Company’s Website under the “Investors Info” section at: http://www.odysseyre.com.
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