Transatlantic Holdings, Inc. reported that its net income for the first quarter of 2007 increased 5.2 percent to $107.2 million, or $1.61 per common share (diluted), compared to $102.0 million, or $1.54 per common share (diluted), in the first quarter of 2006.
The bulletin noted that the net income figure “includes the after-tax impact of estimated catastrophe costs from European Windstorm Kyrill of $27 million,” but it also indicated that there “were no other significant catastrophe loss events occurring in the first quarter of 2007 or 2006.”
The profitable results will also be welcomed by the American International Group (AIG), which holds 59.19 percent of Transatlantic’s shares.
Commenting on the quarter’s results, President and CEO Robert F. Orlich stated: “Transatlantic reported solid first quarter results despite losses from Windstorm Kyrill. Annualized GAAP return on equity for the 2007 first quarter was 14.3 percent. Operating cash flows remained strong.
“The premium increase year over year was, in part, indicative of a strong property market in the domestic segment that was prevalent through January 1, 2007. While generally, rates have drifted modestly downward in the early part of the year, we are seeing an ample amount of favorable opportunities throughout our global network of offices.”
Income before income taxes for the first quarter of 2007 amounted to $136.6 million compared to $127.8 million in the first quarter of 2006. These results include pre-tax realized net capital gains of $15.4 million and $5.7 million in the first quarter of 2007 and 2006, respectively.
Net premiums written for the first quarter of 2007 amounted to $984.2 million compared to $914.4 million in the same 2006 quarter, an increase of 7.6 percent. International business represented 48 percent of net premiums written in the first quarter of 2007 versus 51 percent in the comparable 2006 period.
The combined ratio for the first quarter of 2007 was 97.7 versus 96.4 in the first quarter of 2006. The net impact of Windstorm Kyrill added 3.8 to the combined ratio for the first quarter of 2007. Net adverse development related to losses occurring in prior years increased the combined ratio in the first quarter of 2007 and 2006 by 1.9 and 3.9, respectively.
The complete report can be obtained on the web site of Transatalntic Holdings subsidiary Transatlantic Re at: www.transre.com.
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