“While the catastrophe losses of the third quarter dampened our overall annual results, the underlying book of business continues to display the results of disciplined underwriting and risk selection,” said President and Chief Executive Officer Scott Carmilani, in a statement.

“We were able torecognize positive reserve developments from prior years while maintaining our prudent reserve posture,” he continued.

In the fourth quarter, the company adjusted its gross estimates of claims relating to third-quarter Florida hurricanes and two Japanese typhoons by $22.0 million but also benefited from positive reserve development of $79.4 million from prior accident years.

In the third quarter, AWAC reported that it had incurred losses of $153.6 million resulting from the Florida hurricanes and two Japanese typhoons, net of reinsurance and after taxes.

The catastrophes pushed the full-year combined ratio up 11 points to 95.9, compared to 84.9 in 2003.

During the year, the company expanded operations in both the United States and Europe, opening a New York branch in June and a London branch in August.

“As we look forward to 2005, our fourth year of operation, we will expand our marketing in the U.S. in order to enhance our visibility with regional brokers and large middle-market accounts,” Mr. Carmilani said. “We will continue our geographic diversification with focus on the U.K., Europe and Australia,” he added.

Overall, in 2004, gross written premiums jumped 8.5 percent to $1.7 billion, but net premiums grew only 1.9 percent to $1.3 billion.

As of Dec. 31, 2004, shareholders' equity rose over $2 billion, increasing 8.1 percent over year-end 2003.

(Editor?s Note: Allied World Assurance reported 2004 results after the summary charts for Bermuda insurers and reinsurers on pages 18, 20 and 22 had gone to press.)

Reproduced from National Underwriter Edition, March 4, 2005. Copyright 2005 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.