Allied World Assurance Company Holdings, AG reported net income of $122.8 million, or $3.54 per diluted share, for the third quarter of 2013 compared to net income of $219.6 million, or $6.00 per diluted share, for the third quarter of 2012. Net income for the nine months ended September 30, 2013 was $280.0 million, or $7.97 per diluted share, compared to net income of $534.2 million, or $14.28 per diluted share, for the first nine months of 2012.
Net operating income in Q3 was $101.8 million, or $2.93 per diluted share, for the third quarter of 2013, compared to operating income of $79.2 million, or $2.16 per diluted share, for the third quarter of 2012. Operating income for the nine months ended September 30, 2013 was $289.5 million, or $8.24 per diluted share, compared to operating income of $258.0 million, or $6.90 per diluted share, for the first nine months of 2012.
President and Chief Executive Officer Scott Carmilani commented: “Once again, Allied World delivered an excellent underwriting performance. We benefited from profitable growth across our well balanced, niche book of business amid an attractive rate environment. The improved investment environment also contributed to diluted book value per share growth of over 3 percent for the quarter.”
Allied World’s report also listed the following operating results:
– Gross premiums written were $580.9 million, a 15.2 percent increase compared to $504.4 million in the third quarter of 2012. This was attributable to growth across all three segments.
– U.S. Insurance grew by 17.3 percent helped by new business across existing lines including general casualty and programs, contributions from newer lines including primary construction, and premium rate increases across all lines of business;
– International grew by 9.5 percent in part due to new aviation business and from growth in professional liability lines across the European and Bermuda platforms;
– Reinsurance grew by 16.1 percent driven by new business in the specialty line.
– Net premiums written were $453.1 million, a 15.7 percent increase compared to $391.5 million in the third quarter of 2012.
– Net premiums earned were $510.8 million, a 15.8 percent increase compared to $441.0 million in the third quarter of 2012.
– Underwriting income was $80.1 million, a 52.9 percent increase compared to $52.4 million in the third quarter of 2012 due to higher premiums earned as well as a fewer losses.
– The combined ratio was 84.2 percent compared to 88.1 percent in the third quarter of 2012 primarily due to a lower reported loss ratio offset by a slightly higher expense ratio.
– The loss and loss expense ratio was 54.2 percent in the third quarter of 2013 compared to 58.7 percent in the prior year.
– During the third quarter of 2013, the company recorded net favorable reserve development on prior loss years of $61.5 million, a benefit of 12.0 percentage points to the loss and loss expense ratio, compared to $56.2 million a year ago, a benefit of 12.7 percentage points.
– Excluding prior year reserve adjustments, the loss and loss expense ratio for the third quarter of 2013 was 66.2 percent compared to 71.4 percent for the third quarter of 2012.
– The company experienced no catastrophe losses for the quarter ended September 30, 2013.
– The company’s expense ratio was 30.0 percent for the third quarter of 2013 compared to 29.4 percent for the third quarter of 2012.
– The increase was largely driven by higher accruals for performance based compensation, the impact of a higher share price in the quarter on the stock compensation accrual, as well as increased headcount.
Source: Allied World Assurance
Topics Profit Loss
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