Two weeks before its first birthday Bermuda-based Allied World Assurance Holdings, LTD reported net income of $40.9 million for the third quarter and $84.9 million for the nine months ended September 30, 2002.
The company commenced business on November 13, 2001, with approximately $1.5 billion in equity capital from investments led by AIG, Chubb Corp. and GS Capital Partners 2000, L.P., an investment fund managed by Goldman Sachs.
It reported that gross premiums written in the third quarter were $278.8 million, and $684.0 million for the first nine months. Net premiums written in the quarter were $254.3 million and for the nine months were $652.2 million. Net premiums earned in the quarter were $136.0 million, and for the first nine months were $235.6 million. Net investment income was $30.2 million in the quarter ended September 30, 2002 and $61.0 million in the nine months ended September 30, 2002.
“Net loss and loss adjustment expenses incurred (including increases in reserves for incurred but not reported losses) were $101.3 million in the quarter ended September 30, 2002 and $165.7 million for the nine months ended September 30, 2002, representing loss ratios of 74.5% and 70.3% respectively,” said the announcement. The company’s combined ratio for the quarter was 91.2% and 89.7% for the nine months to September 30.
President and CEO Michael I. D. Morrison commented that, “Allied World had another extremely successful quarter with demand for our capacity continuing at a high level. We continue to benefit from the strategic initiatives we have taken and we anticipate these will continue to result in increased premium writings in the years to come. The ongoing chaos in the reinsurance and insurance industries as companies experience ratings downgrades and reassess their business models will provide us with increasing opportunities in the future. These dislocations also remind us that our business is risk assumption and during the quarter we have conservatively increased the reserves we set aside for claims”.
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