Bermuda-based Allied World Assurance Holdings Ltd. reported net income of $64.4 million for the first quarter 2005, compared to $89.4 million for the first quarter of 2004. Allied suffered losses of $18.9 million arising primarily from windstorms in Northern Europe during the period.
President and CEO Scott Carmilani commented: “Our first quarter gross premium of $505 million grew by a modest 1 percent over the first quarter last year. In markets characterized by increased competition and softer pricing, we are pleased with our stable growth and performance. Our first quarter production was fueled by a strong renewal season for our reinsurance division, which grew 52 percent over the prior year, driven by customers seeking knowledgeable, financially secure partners for their sensitive, long-term reinsurance coverage. We have been able to maintain desirable terms and conditions, which enable us to meet our targeted profit margins. Our property and casualty operations continue to strengthen their presence in the U.S. middle market through the expansion of our offices in New York and Boston.”
Carmilani continued, noting: “We have been able to deliver growth in shareholders’ equity of 44 percent since the company’s founding. During the first quarter, we paid approximately US$500 million to our shareholders in the form of a special one-time cash dividend. We are pleased to provide such returns to our shareholders, which reflect our growth, robust cash flows and superior financial strength.”
The full financial report and additional comments may be obtained on the company’s Web site at: www.awac.com.
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