Alleghany Corp. reported $19.2 million in third-quarter net earnings, down 48 percent from one year ago when the company had $36.6 million in earnings.
The company’s result reflects the decrease in pre-tax net earnings at Alleghany Insurance Holdings LLC (AIHL), Alleghany Corp.’s holding company for its property/casualty and surety insurance operations. AIHL suffered from the rising loss and loss adjustment expenses, mostly from higher catastrophe and other larger property losses. The company reported its quarterly figures on Monday, Nov. 7.
Alleghany had $18 million in catastrophe losses for the quarter, up from $3.4 million one year ago. The company also lost $7.6 million from investment activities, compared to a $1.1 million in investment loss one year ago.
CEO Weston Hicks noted a challenging investment environment, elevated catastrophe and weather-related losses, as well as other large property losses resulting from the northern Virginia earthquake in August.
He added that “although we continue to see a competitive property/casualty insurance market, renewal price changes in many lines are no longer negative, and we continue to be cautiously optimistic about the prospect for improvements in catastrophe-exposed property insurance and workers’ compensation pricing.”
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