Hamilton, Bermuda-based OneBeacon reported net income dropped 355 percent in the third quarter after its investment portfolio sagged.
"Clearly, this was a challenging quarter driven primarily by our investment results," said Mile Miller, chief executive officer of OneBeacon in a statement.
"Our equities performed worse than the S&P 500 for the quarter, although they outperformed the benchmark through nine months. Our fixed income securities were also down in the quarter, resulting in a slight decline for the year," he added
OneBeacon reported Friday that third quarter income was down $293 million, from net income of $82 million, or 82-cents a share, last year, to net loss of $210 million, or loss per share of $2.21.
Revenues in the quarter dropped 71 percent, or $404 million, from $567 million last year to $163 million this year.
The company reported earned premiums dropped less than 1 percent in the quarter, or $2.4 million, going from $474 million to $471 million.
The combined ratio for the quarter rose 16 points to 99.8.
For the nine months, the company reported income dropped 203 percent or $416 million, to income loss of $211 million, or loss per share of $2.19, compared to net income of $205 million, or $2.05 a share, for the same period last year.
Revenues over the nine month period were down 35 percent, or $598 million, from $1.72 billion last year to $1.12 billion.
Earned premiums were off 1 percent, or $17 million, going from $1.4 billion to $1.39 billion.
The combined ratio over the nine months rose 5.4 points to 98.1.
The results also reflected $28 million of catastrophe losses primarily from Hurricanes Ike and Gustav.
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