Max Re Quarterly Income Up

Max Re Quarterly Income Up

NU Online News Service, Jan. 3, 3:50 p.m. EST?Max Re Capital's 2003 fourth-quarter net income rose more than 200 percent to $36.4 million from $11 million reported during the 2002 fourth quarter, based on improved performance by its underwriting units, management said.[@@]

The Hamilton, Bermuda-based reinsurer also had a strong rebound for its 2003 full-year profit, posting $120.6 million in net income compared to a net loss of $5.8 million for 2002.

"All aspects of our business performed well in 2003. We exceeded $1 billion in gross premiums written, our property and casualty business produced an underwriting profit, and our alternative investments returned 16.57 percent," commented Max Re Chief Executive Officer Robert Cooney. "All of these factors led to net operating income before minority interest of $111.6 million," Mr. Cooney said.

Max Re's gross premiums written for the 2003 fourth quarter were $224.9 million, $116.6 million of which came from property-casualty underwriting while $108.3 million were from life and annuity underwriting. In comparison, the insurer had posted $116.3 million in gross premiums written during the 2002 fourth quarter, all of which came from property-casualty underwriting.

Net premiums earned for the 2003 fourth quarter were $261.4 million, better than the $140.4 million posted in 2002.

For the full-year 2003, Max Re's gross premiums written were $1.001 billion, comprised of $901.5 million from p-c underwriting and $108.3 million from life and annuity underwriting. In 2002, the insurer had $647.4 million in gross premiums written, $632.7 million of which came from p-c underwriting while $14.7 million came from life and annuity underwriting. Net premiums earned for 2003 were $727.2 million, compared with $388 million reported for 2002.

However, Max Re saw its fourth-quarter net investment income fall to $16.7 million, from $24.8 million posted for the same quarter in 2002. Net investment income for the full-year 2003 also deteriorated somewhat, to $60.1 million from $64.4 million during 2002.

Max Re Capital provides reinsurance for property-casualty and life, as well as annuity markets through its Max Re units. The company offers coverage for workers' compensation, employers' liability, medical malpractice, property damage, and other casualty liability risks.