Transatlantic Holdings, Inc. reported that its net income for the first quarter of 2003 increased 18.7 percent to $62.8 million, or $1.19 per common share (diluted), compared to $52.9 million, or $1.00 per common share (diluted), in the same prior year quarter. Net income includes after-tax net realized capital gains (losses) of $0.3 million and ($3.2) million in the first quarters of 2003 and 2002, respectively.
Robert Orlich, president and CEO, noted, “Transatlantic’s positive momentum continued in the first quarter, with a solid year over year earnings increase accompanied by record quarterly premium volume, cash flow and an improved combined ratio. Premium growth was strong in both our domestic and international portfolios, as market conditions remained favorable and we continued to successfully utilize our financial strength and broad global reach.”
Income before income taxes amounted to $79.2 million in the first quarter of 2003 versus $66.7 million in the first quarter of 2002, an increase of 18.8 percent. Included in these results are pre-tax realized capital gains (losses) of $0.5 million and ($4.9) million in the first quarters of 2003 and 2002, respectively.
Net premiums written for the first quarter of 2003 increased 36.3 percent to $768.1 million from $563.6 million reported in the same prior year quarter. International business represented 45.6 percent of net premiums written for the first quarter of 2003 versus 45.5 percent for the first quarter of 2002.
The combined ratio for the first quarter of 2003 was 97.4 versus 98.2 for the comparable 2002 period. The company’s combined ratio represents the sum of the ratio of net losses and loss adjustment expenses divided by net premiums earned (loss ratio) and the ratio of the sum of net commissions and other operating expenses divided by net premiums written (expense ratio). Net loss and loss adjustment expense reserves (which represents unpaid losses and loss adjustment expenses, net of reinsurance recoverable thereon) rose $120.3 million during the 2003 first quarter, bringing the amount of such reserves to $3.4 billion at quarter-end.
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