Bermuda-based reinsurer Max Re Capital Ltd. reported a net loss for the three months ended December 31, 2005 of $11.4 million, or 20 cents per diluted share, compared to net income of $87.1 million, or $1.82 per diluted share, for the three months ended December 31, 2004.
The company’s net operating loss, which represents net loss increased by net realized loss on sale of fixed maturities, for the three months ended December 31, 2005, was $7.9 million, or 13 cents per diluted share, compared with a net operating gain of $80.8 million, or $1.67 per diluted share, for the three months ended December 31, 2004.
For the year ended December 31, 2005, Max Re said it had net income of $6.7 million, or 13 cents per diluted share, compared to $133.7 million, or $2.75 per diluted share, for the year ended December 31, 2004. For the year ended December 31, 2005, the Company had net operating income of $7.4 million, or 14 cents per diluted share, compared to $123.3 million, or $2.54 per diluted share, for the year ended December 31, 2004.
President and CEO Robert J. Cooney commented, “The Company recorded a reduction in net income of US$157.4 million from natural catastrophes during 2005, but despite these events we are pleased to report a small net income for the year. We successfully raised US$284.1 million in a public common share offering in the fourth quarter of 2005 and are well positioned to participate in the expected attractive market for our products in upcoming months.”
Gross premiums written in the fourth quarter totaled $257.2 million, “of which $251.3 million came from property and casualty underwriting and $5.9 million from life and annuity underwriting, compared to $139.6 million, $104.6 million coming from property and casualty underwriting and $35.0 million of life and annuity underwriting, for the three months ended December 31, 2004,” said the bulletin.
Gross premiums written for the year ended December 31, 2005 were $1.246 billion compared to $1.0436 billion for 2004. Max Re said: “Property and casualty reinsurance, property and casualty insurance and life and annuity reinsurance accounted for 49.4 percent, 28.5 percent and 22.1 percent, respectively, of gross premiums written for the year ended December 31, 2005. Net premiums earned for the year ended December 31, 2005 increased 13.2 percent to $1.0394 billion compared to $917.8 million for the same period in 2004.
In a separate announcement Max Re said it expects gross premiums written in 2006 “to be between $1.0 and $1.1 billion. The property and casualty combined ratio, which is defined as total losses and expenses as a percentage of net premiums earned, is expected to range between 88 percent and 90 percent. Net operating earnings per share, which represents net income decreased by net realized gains on sale of fixed maturities, are expected to be between $3.00 and $3.50 per share.”
The full earnings report may be obtained on the company’s Web site at: http://www.maxre.bm.
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