Bermuda’s Allied World Assurance Holdings, Ltd. reported net income of $87.2 million for the fourth quarter 2003, compared to $42.8 million for the fourth quarter last year. Net income for the 12 months ending Dec. 31, 2003, was $288.4 million, compared to $127.6 million for the same period last year.
President and CEO Scott Carmilani commented: “2003 was an excellent year for Allied World. The company’s success reflects the dedication, great customer service and solid underwriting decisions provided by all involved. Everyone at AWAC is justifiably proud of our accomplishments over the past two years. Our premium targets were exceeded, expenses were controlled and, most importantly, excellent overall profitability was attained.
“The basis of our success lies in the proper selection, pricing and terms of each individual risk. Our brokers and clients have been impressed with the expertise, responsiveness, accessibility and ‘can do’ attitude of the AWAC team. Our position as ‘insurer of choice’ in our selected markets is further enhanced by the service that follows after the underwriting decision has been made. In everything from policy issuance, claims handling and payment, to billing and collections, our reputation for superior service is well established.”
The report noted the following financial figures:
— Gross premiums written were US$317.2 million in the fourth quarter 2003 , a 33 percent increase over the same period in 2002.
— For the 12 months ended Dec. 31, 2003, gross written premiums increased 70% over the prior year , to US$1.57 billion.
— Net premiums earned in the current quarter were US$325.1 million, and US$198.4 million in the quarter ending Dec. 31, 2002;
— net premiums earned in the 12 months ending Dec. 31, 2003, were US$1,167.2 million, compared to US$434.0 million in 2002.
— Net loss and loss adjustment expenses incurred (including increases in reserves for incurred but not reported losses) were US$188.7 million in the quarter ended Dec. 31, 2003, and US$138.3 million in the same quarter last year, representing loss ratios of 58.1% and 69.7%, respectively.
— Net loss and loss adjustment expenses incurred were US$762.1 million in the 12 months ended Dec. 31, 2003, and US$304.0 million for 2002, representing loss ratios of 65.3% and 70.1%, respectively.
— Acquisition costs and general and administrative expenses totaled US$72 .8 million in the quarter ended Dec. 31, 2003, and US$44.1 million in the quarter ended Dec. 31, 2002, representing expense ratios of 22.4% and 22.2%, respectively.
— For the 12 months ended Dec. 31, 2003, acquisition costs and general and administrative expenses totaled US$229.1 million, compared to US$89.7 million for 2002, representing expense ratios of 19.6% and 20.7%, respectively.
— The company’s combined ratio for the quarter ended Dec. 31, 2003 was 80.4%, and for the quarter ended Dec. 31, 2002, was 92.0%.
— For the 12 months ended Dec. 31, 2003 and 2002, the combined ratios were 84 .9% and 90.7%, respectively.
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