Bermuda-based IPC Holdings, a leading provider of property catastrophe and specialized reinsurance, reported net income for the quarter ended September 30, 2003 of $62.1 million, or $1.29 per share, compared to $45.8 million, or $0.95 per share, for the third quarter of 2002.
For the nine months ended September 30, 2003, net income was $195.2 million, or $4.05 per share, compared to $137.9 million, or $2.86 per share, for the corresponding period of 2002.
The company reported net operating income of $61.8 million or $1.28 per share, for the quarter, and $188.8 million or $3.91 per share for the nine months, compared to $46.6 million, or $0.97 per share and $146.2 million or $3.03 per share, for the corresponding three and nine month periods in 2002.
President and CEO Jim Bryce commented: “The third quarter was very active in terms of catastrophic events. In the United States, Property Claim Service (“PCS”) have estimated total insured losses of $2.9 billion from seven Catastrophe events, including $1.2 billion for Hurricane Isabel, which impacted several mid-Atlantic states in September. The $2.9 billion estimate, which we anticipate will increase as time allows for more claims to be reported, makes this quarter of 2003 the third most costly third quarter since PCS have tracked such events.
“In Bermuda we suffered first-hand the effects of Hurricane Fabian in early September, although thanks to the strength of the infrastructure and the determination of our staff, this had a very minor impact on the operations of the company. Applied Insurance Research (“AIR”) have estimated insured losses from Fabian to be in the region of $350 million.
“In Asia, there was a super-Typhoon, Maemi, which struck Korea and there was also the 8.2 Richter Scale earthquake which affected the Hokkaido region of Japan. All of these events, together with changes to catastrophe models, which are used by reinsurance buyers to determine probable maximum losses, have served to heighten the awareness of exposures, and insurance companies’ needs to purchase greater amounts of catastrophe protection. This in turn is helping the continuation of the healthy market in which we operate, and is being reflected in increased demand for capacity for the January 1, 2004 renewals that we have seen to date.
“We remain optimistic in our outlook on the industry for the coming year. We are gratified with our results for the third quarter which, despite the increase in catastrophe activity, are reflective of our selective and disciplined underwriting approach.”
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