Earnings Report: Alterra Capital

By | May 11, 2012

Selected earnings highlights from Bermuda-based Alterra Capital Holdings for the first quarter of 2012 are as follows:
Q1 2012 Q1 2011
Gross premiums written ———— $661.330 mn $627.848 mn
Net premiums written ————— $436.868 mn $490.401 mn
Net premiums earned ———— $338.175 mn $379.887 mn
Net income (loss) ——————- $79.024 mn ($46.687 mn)
Operating net income (loss) ———- $67.756 mn ($24.725 mn)
*Investment gain/loss —————– $25.493 mn ($18.818 mn)
Net investment income ————— $58.678 mn $57.766 mn
Q1 combined ratio – 92.6 percent (112.5 percent in Q1 2011)
* Realized and unrealized

President and CEO W. Marston (Marty) Becker commented: “We started the year off with a solid quarter and the financial results reflect a good balance between underwriting and investment performance. Our operating return on equity was just under 10 percent, making this the fourth consecutive quarter in which we have grown book value per share.

“Alterra’s newer segments and teams in U.S. insurance, Alterra at Lloyd’s and Latin America are still maturing, and with modest levels of earned premium are showing expense ratios that are higher than our ultimate expectations. While our selected loss ratios for these segments and teams will remain conservative until we see more actual loss experience, we are pleased with their progress to date.”

He added that the “market has firmed materially for any risk that has property catastrophe exposure, and has firmed somewhat for certain other lines of business. It is encouraging to us that the remaining rates are no longer going down, and that terms and conditions are generally more balanced. We continue to expect positive rate movement through the balance of 2012, and believe Alterra is well positioned to take advantage of underwriting opportunities as better times return.”

Source: Alterra Capital Holdings

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