Bermuda-based Allied World Assurance Holdings, Ltd. reported net income of $42.8 million for the fourth quarter and $127.6 million for the year ended Dec. 31, 2002. Allied World Assurance Holdings, Ltd. was incorporated in Bermuda on Nov. 13, 2001. The company transacted relatively little business in 2001.
President and CEO Michael Morrison noted, “Allied World’s fourth quarter once again evidenced the strength of the need for quality capacity in the insurance market, our capacity being deployed in all areas in which we specialize. Discriminating insureds, and their broker representatives, continue to seek out highly rated companies such as ours with which to entrust their coverages. While disruption of the reinsurance and direct insurance markets continues, our team of experienced underwriters see increasing opportunities to obtain business at more realistic terms, conditions and rates than in years past.”
Gross premiums written were $238.5 million in the fourth quarter of 2002, and for the year ended Dec. 31, 2002 gross premiums written were $922.5 million. Net premiums written in the quarter were $193.8 million and for the twelve months were $846.0 million. Net premiums earned in the quarter ended Dec. 31, 2002 were $198.4 million. For the year ended Dec. 31, 2002 net premiums earned were $434.0 million. Net investment income was $20.6 million in the quarter ended Dec. 31, 2002 and $81.6 million in the 12 months ended Dec. 31, 2002.
Net loss and loss adjustment expenses incurred (including increases in reserves for incurred but not reported losses) were $138.3 million in the quarter ended Dec. 31, 2002 and $304.0 million for the 12 months ended Dec. 31, 2002, representing loss ratios of 69.7 percent and 70.1 percent, respectively.
Acquisition costs and general and administrative expenses totaled $44.1 million for the quarter ended Dec. 31, 2002 and represented an expense ratio of 22.2 percent. For the 12 months ended Dec. 31, 2002, these costs were $89.7 million and represented an expense ratio of 20.7 percent.
The company’s combined ratio for the quarter was 91.9 percent and for the twelve months to Dec. 31, 2002 was 90.8 percent.
Net income, which includes $6.7 million of net realized gains, was $42.8 million for the three months ended Dec. 31, 2002 and $127.6 million, including $7.2 million of net realized gains, for the twelve months ended Dec. 31, 2002.
At Dec. 31, 2002, shareholders’ equity was $1,682.4 million, an increase of 12.9 percent over the $1,490.4 million reported at Dec. 31, 2001.
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