Bermuda-based Alterra Capital Holdings reported net income of $79.7 million, or $0.69 per diluted share, for the fourth quarter of 2010, compared to net income of $62.6 million, or $1.08 per diluted share, for the same quarter of 2009.
The earnings figures 2009 reflect the merger in May 2010 of Max Capital Group and Harbor Point Limited, a privately held company.
For the year ended December 31, 2010, Alterra reported net income of $302.3 million, or $3.17 per diluted share, compared to net income of $246.2 million, or $4.26 per diluted share, in 2009.
Net operating income for the fourth quarter of 2010 was $76.2 million, or $0.66 per diluted share, compared to net operating income of $60.5 million, or $1.04 per diluted share, for the same quarter of 2009. Annualized net operating return on average shareholders’ equity for the fourth quarter of 2010 was 10.2 percent.
Net operating income for the year ended December 31, 2010 was $251.7 million, or $2.64 per diluted share, compared to net operating income of $208.9 million, or $3.62 per diluted share, in 2009. Net operating return on average shareholders’ equity for the year ended December 31, 2010 was 10.2 percent.
Combined ratios for the fourth quarter of 2010 by segment were 76.0 percent for insurance, 82.8 percent for reinsurance, 100.2 percent for U.S. specialty and 86.4 percent for Alterra at Lloyd’s. The combined ratio on property and casualty business for the full year was 85.7 percent compared to 88.1 percent in 2009.
The bulletin explained that “Altera’s 2010 results include the results of operations for the former Harbor Point companies from May 12, 2010. Comparative figures for 2009 represent the former Max results of operations only. Accordingly, a comparison of Altera’s gross premiums written and other results of operations for current and prior periods are not meaningful.”
President and CEO W. Marston (Marty) Becker commented: “It has been an exciting and profitable year for Alterra and our shareholders. Our success continues to be tied to our strategy of opportunistically entering complementary market segments with attractive underwriting prospects, while consistently deploying “best in class” underwriting talent to build profitable books of business and better serve our clients.
“In 2010, the insurance markets continued to be impacted by competitive pricing that became increasingly more aggressive as the year progressed. In this environment, our foremost objective was, and is, to maintain our underwriting discipline, and we believe we have done this well to date. As evidence of this, we expect losses from the recent events in Australia and Egypt to be within our normal ranges.
“With declining premiums but continuing profitability, excess capital is inevitably generated. We are committed to the flexible and efficient management of capital, and accordingly we are pleased to have returned over $558 million to our shareholders in 2010, in the form of regular dividends, a special dividend, and share repurchases.
“We are well positioned to navigate the uncertainty of the present industry environment, and to capture meaningful opportunity at the cycle inflection point. In the interim, we intend to continue to focus on growth in book value per share, capital management and a competitive dividend, and to protect our clean and strong balance sheet,” Becker concluded.
Source: Alterra Capital
Topics Profit Loss
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