Another Bermuda-based company, Max Re Capital Ltd., reported a good first quarter, with net income for the period ended March 31, 2003 of $14.562 million, or $0.38 per diluted share, compared to net income of $2.6 million, or $0.06 per diluted share, for the same period in 2002.
The company also reported that total revenue for the three months ended March 31, 2003 increased 80 percent to $184.5 million, compared to $102.6 million of total revenue for the same period in 2002. “Growth in revenue is principally attributable to a 68% increase in earned premium and to improved performance on the alternative investments for the three months ended March 31, 2003 compared to the same period in 2002,” said the bulletin.
Chairman, President and CEO Robert J. Cooney commented, “Our first quarter produced record premiums written largely attributable to strong growth in traditional risk transfer reinsurance which represented over 28% of the net premium revenue. The commencement of insurance underwriting operations midway through the quarter has been well received in the marketplace and contributed $9.0 million in premiums written in the quarter. Our favorable net operating income result this quarter is jointly attributable to increasing profits from property and casualty alternative risk and traditional reinsurance underwriting and a return of 3.10% on the alternative investment portfolio.”
Max Re said that gross premiums written for the three months ended March 31, 2003 were $430.5 million, “coming entirely from property and casualty underwriting,” compared to $343.9 million, comprised of $329.2 million from property and casualty underwriting and $14.7 million from life and annuity underwriting, for the three months ended March 31, 2002. Net premiums earned for the three months ended March 31, 2003 were $143.7 million compared to $85.5 million for the same period of 2002.
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