Allied World Assurance Fourth Quarter Up 96%

Allied World Assurance Fourth Quarter Up 96%

NU Online News Service, Feb. 24, 10:19 a.m. EST?Allied World Assurance Holdings Ltd of Hamilton, Bermuda reported that its fourth quarter 2003 net income increased 96 percent to $87.2 million, compared to $42.8 million for the period in 2002.[@@]

In addition to the quarterly increase of $44.4 million, net income for the full year was $288.4 million, up nearly 80 percent over 2002.

Over the past two years, "our premium targets were exceeded, expenses were controlled and, most importantly, excellent overall profitability was attained," said Scott Carmilani, Allied's president and chief executive officer.

"The basis of our success lies in the proper selection, pricing and terms of each individual risk," he added.

Gross premiums written were $317.2 million in the fourth quarter 2003, a 33 percent increase over the same period in 2002. For the twelve months ended Dec. 31, 2003, gross written premiums increased 70 percent over the prior year, to $1.57 billion.

Net premiums earned in the current quarter were $325.1 million, up 64 percent. Net premiums earned in the 12 months ending Dec. 31, 2003 were $1.167 billion, up 169 percent from the $434.0 million posted in 2002.

Net loss and loss adjustment expenses incurred (including increases in reserves for incurred but not reported losses) were $188.7 million in the quarter ended Dec. 31, 2003, up 36 percent, representing loss ratios of 58.1 and 69.7, respectively. Net loss and loss adjustment expenses incurred were $762.1 million in the 12 months ended Dec. 31, 2003, up 151 percent from the $304 million posted for 2002--representing loss ratios of 65.3 and 70.1, respectively.

The company's combined ratio for the fourth quarter was 80.4, down from 92 for the comparable period in 2002. For the full year 2003 and 2002, the combined ratios were 84 and 90.7, respectively.

Net income, which includes $2.3 million of net realized investment losses, was $87.2 million for the quarter?more than double the $42.8 million posted in the same period in 2002, which included $6.7 million of net realized investment gains.

Net income for all 2003 was $288.4 million, which includes $13.4 million of net realized investment gains, again more than double the $127.6 million posted in 2002, which included $7.2 million of net realized investment gains.