Third Quarter Earnings Reports: White Mountains, PartnerRe

November 1, 2011

White Mountains Insurance:
Q3 2011 Q3 2010
Net earned premiums —- $490.6 mn $498.1 mn
9 months – 2011 2010
$1.4367 bn $1.7729 bn
Comprehensive net income (loss) ($97.6 mn) $177.6 mn
9 months (loss) 2011 2010
($57.6 mn) $60 mn
Net operating income (loss) ——- ($11.9 mn) $3.6 mn
9 months 2011 2010
($10.7 mn) $1.2 mn
Q3 2011 Q3 2010
Net Investment gains* $1.7mn $11.6 mn
9 months 2011 2010
$78.3 mn $104.7mn
Net investment income —- $42.8 mn $48.9 mn
9 months 2011 2010
$138.1 mn $157.4 mn

Combined ratio of OneBeacon for Q3 – 94 percent (92 percent in Q3 2010); 9 months combined ratio: 94 percent (101 percent in 2010)

Combined ratio of Sirius Group for Q3 – 89 percent (78 percent in Q3 2010); 9 months combined ratio: 104 percent (102 percent in 2010)

Chairman and CEO Ray Barrette commented: “Adjusted book value per share was down in the quarter driven by the decline in our equity portfolio, including our Symetra warrants, and the strengthening dollar.

“Both OneBeacon and Sirius had solid underwriting results for the quarter. In September, we completed a tender offer for 327,872 shares at $415 per share. In October, we closed the sale of Esurance and AFI; we thank Gary Tolman and his team for a great ride.

“We also completed the reorganization of our reinsurance operations, now called the Sirius Group. With the reorganization, A.M. Best upgraded Sirius America’s rating to ‘A’ and all other reinsurance ratings were affirmed. Sirius released $300 million of undeployed capital to the parent company. Our undeployed capital now stands at about $2 billion. On October 17th, we launched a new tender offer for up to 300,000 shares to return additional undeployed capital to our shareholders.”

The full report, as well as additional and supplemental information and instructions for accessing the earnings conference call may be obtained on the company’s website at: http://www.whitemountains.com .

*realized and unrealized

PartnerRe:
Q3 2011 Q3 2010
Gross premiums written—– $1.0953 bn $1.0084 bn
9 months – 2011 —- 2010
$3.7351 bn $4.058 bn
Net premiums earned — $1.2943 bn $1.3134 bn
9 months – 2011 2010
$3.4663 bn $3.5718 bn
Net Income ——– $180.1 mn $524.9 mn
9 months (loss) 2011 2010
($502.64 mn) $795.5 mn
Operating income —— $164.5 mn $301.6 mn
9 months (loss) 2011 2010
($503.9 mn) $393 mn
Q3 2011 Q3 2010
Net realized capital gains — $26.14 mn $293.16 mn
9 months (loss) 2011 2010
($7.86 mn) $484.68 mn
Net investment income ——- $163.64 mn $164.4 mn
9 months 2011 2010
$473.6 mn $511.98 mn

Q3 Combined ratio (non life): 93.1 percent (80.7 percent in Q3 2010);
Nine months: 126.7 percent (2010 95.2 percent)

Chairman and CEO Costas Miranthis noted: “We had respectable third quarter results overall, with a 10.3 percent annualized operating ROE, which is below our long term ROE goal, but reasonable given the current low interest rate environment.”

“The third quarter benefitted from the absence of large catastrophic losses, and also from the fact that reported losses were considerably lower than expectations, resulting in favorable reserve development. Results were negatively impacted, however, by an increase in our provisions for the earthquake events of the first quarter. This increase reflects our revised view of ultimate losses incorporating most recently available information
including cedants’ own estimate of loss.”

“As we approach the January 1 renewals, we are cautiously optimistic about market trends. We are beginning to see price increases in many lines, particularly short tail lines, as well as increased demand for reinsurance. Our strong capital base positions us well to take advantage of any opportunities. We will assess such opportunities, as well as other capital management alternatives, with the objective of maximizing the growth of our economic value per share over the medium term.”

The full report, as well as additional and supplemental information and instructions for accessing the earnings conference call may be obtained on the company’s website at: www.partnerre.com

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