Bermuda-based Max Re Capital Ltd. reported net income for the three months ended September 30, 2006 of $26.5 million, or $0.42 per diluted share, compared to a net loss of $44.2 million, or $0.96 per diluted share, for the three months ended September 30, 2005. Net operating income, which excludes capital transactions, for the period was $26.8 million, or $0.42 per diluted share, compared with a net operating loss of $45.9 million, or $0.99 per diluted share, for the three months ended September 30, 2005.
In a separate announcement Max Re said the Board of Directors has appointed W. Marston Becker as Chairman and CEO effective immediately. Becker had been serving in both posts following the resignation of longtime Chairman and CEO Robert J. Cooney, who resigned after Max Re reopened its investigation of three finite reinsurance transactions (See IJ Website Oct. 31).
Becker has an extensive insurance background. He hasd served as Chairman and CEO of LaSalle Re and Trenwick Group, and has been a director of Max Re since April 2004.
Becker commented: “I am honored to serve as Chief Executive Officer of Max Re. This is a dynamic organization with superior underwriters and insurance professionals who have deployed our capital across a diversified portfolio of risks. I look forward to building on our present strong foundation as we guide the Company to ever increasing success for our shareholders.”
The earnings bulletin also noted that Max Re’s net income for the first nine months ended September 30, 2006, was $121.5 million, or $1.91 per diluted share, compared to $22.1 million, or $0.44 per diluted share, for the nine months ended September 30, 2005. For the nine months ended September 30, 2006, the Company had net operating income of $128.8 million, or $2.03 per diluted share, compared to $19.3 million, or $0.39, for the nine months ended September 30, 2005.
Commenting on the earnings results, Becker stated: “During the third quarter the Company produced the best property and casualty underwriting results in its history principally due to the favorable maturing of general liability insurance reserves and benign catastrophe activity. Our insurance business continues to be our fastest growing segment. The underwriting results were partially offset by disappointing returns on our alternative investment portfolio. The opportunity to continue to write attractive property and casualty premium volume has led us to establish a reduced target range for alternative investments of 15 percent to 20 percent of invested assets.”
Max Re said its Q3 gross premiums written “were $177.9 million, of which $177.3 million came from property and casualty underwriting and $0.6 million came from life and annuity underwriting, compared to $288.0 million, of which $196.3 million came from property and casualty underwriting and $91.7 million came from life and annuity underwriting, for the three months ended September 30, 2005. Net premiums earned for the three months ended September 30, 2006 were $147.1 million compared to $295.8 million for the same period of 2005.
“Gross premiums written for the nine months ended September 30, 2006 were $717.7 million compared to $988.8 million for the first nine months of 2005. Property and casualty reinsurance, property and casualty insurance and life and annuity reinsurance accounted for 55 percent, 39 percent and 6 percent, respectively, of gross premiums written for the first nine months of 2006, compared to 48 percent, 25 percent and 27 percent, respectively, for the same period in 2005. Net premiums earned for the first nine months of 2006 decreased 36.5 percent to $506.0 million compared to $796.8 million for the same period in 2005. The decline in gross premiums written and net premiums earned for the first nine months of 2006 principally relates to decreased life and annuity business written and earned.”
The full report should soon be available on the Group’s Website – http://www.maxre.bm – which is currently off line, due to techincal difficulties.
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