Bermuda-based IPC Holdings, Ltd. reported net income for the quarter ended March 31, 2003, of $67.5 million, or $1.40 per share, compared to $43.5 million, or $0.90 per share, for the first quarter of 2002. Operating income, which excludes realized gains and losses on investments, was $63.8 million or $1.32 per share, for the quarter ended March 31, 2003, compared to $44.3 million, or $0.92 per share, for the first quarter of 2002.
President and CEO Jim Bryce commented: “Our record first quarter results reflect both our continuing growth in an ongoing healthy market and a benign period in terms of catastrophic events. There is a continuing and intensifying focus on financial strength and ratings. We believe that we have benefited from our consistent A+ ratings from both A.M. Best and Standard & Poor’s, with a stable outlook, in an industry environment of falling ratings.”
Bryce singled out IPC’s “strong balance sheet and very modest balance of reinsurance recoverables,” as providing brokers and clients “with confidence that we will continue to meet all of our promises to pay, all of the time.” He noted that IPC is about to commence its second decade of operations, and added “like the other remaining Bermuda companies from the ‘Class of ’93’, we have completed approximately ten years of operations that have seen the occurrence of many catastrophic events, including the largest and third largest insured loss events of all time.
We have not only survived those events, we have emerged in a stronger financial position and with a reputation for being one of the most responsible and responsive companies in terms of claims payments. We have remained true to our original business plan, and we believe that this focus on property catastrophe reinsurance conducted with our prudent approach to risk management will provide continuing growth in shareholder value for the future.”
IPC wrote gross premiums of $191.9 million in the first quarter of 2003, an increase of 30% over the $147.0 million in the same period last year. Bryce noted that business from new clients, at higher rates, “more than offset business which we did not renew because of unsatisfactory terms and conditions.” The rate increases were generally in the 5 to 10 percent range, but were somewhat higher “for loss impacted programmes affected by the summer flood losses in Eastern and Central Europe and fires in Canada.”
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