First, the good news about Allied World’s 2016 first quarter: investment income grew by nearly 20 percent.
Many other things for Allied World Assurance Company Holdings AG, however, were on a downward trajectory compared to the same period in 2015, including net income, gross written premiums and reinsurance.
Also, Allied World’s combined ratio worsened to 96 for the quarter, compared to 88.1 in the 2015 first quarter.
Allied World President and CEO Scott Carmilani noted both the investment gains and challenging marketing conditions, but said that the insurer continues to persevere through prudent business practices.
“Although market conditions remain challenging, we continue to find attractive opportunities while maintaining our strong focus on risk selection and capital management,” Carmilani said in prepared remarks.
Net income for the Swiss property/casualty insurer and reinsurer came in at $74.1 million, or $0.81 per diluted share during Q1, versus $124 million, or $1.27 per diluted share, over the same period last year. Net investment income landed at $53.3 million, a 19.5 percent jump compared to $44.6 million generated in the 2015 first quarter.
Gross written premiums were booked at $863.5 million, 1.9 percent lower than the $880.6 million in gross written premiums produced during Q1 in 2015.
Broken down, Allied World’s Global Markets Insurance segment grew 90.6 percent during the 2016 first quarter versus a year ago, thanks to acquired Asian operations. Allied World’s North American insurance segment stayed flat, though its reinsurance segment dropped 16 percent year-over-year, thanks to the reduction in property catastrophe risk as well as non-renewal of some property/casualty treaties.
Allied World noted it repurchased more than 1.9 million common shares through April 18 from the beginning of 2016, at a cost of $66.7 million, or $34.42 per share.
Source: Allied World