Odyssey Re Holdings Corp. joined the Q3 loss parade with a reported net loss of $96.9 million, or $1.51 per diluted share, for the quarter ended September 30, 2005. The figure includes previously announced catastrophe losses from Hurricanes Katrina and Rita of $178.8 million after tax, or $2.79 per diluted share.
The net loss for the third quarter compares to net income of $18.0 million, or $0.27 per diluted share, for the quarter ended September 30, 2004. The earnings announcement said: ÃƒÂ¢??Operating loss after tax was $153.4 million, or $2.39 per diluted share, for the third quarter of 2005, compared to an operating loss after tax of $3.4 million, or $0.04 per diluted share, for the third quarter of 2004. Operating losses after tax exclude both net realized capital gains as reported and net realized capital gains of an equity investee included in net investment income, and losses on the early extinguishment of debt. Included in third quarter 2005 and 2004 net (loss) income were after tax net realized capital gains, including capital gains of an equity investee which is included in investment income, of $58.2 million and $21.4 million, or $0.90 and $0.31 per diluted share.ÃƒÂ¢??
Odyssey Re also noted: ÃƒÂ¢??Gross premiums written for the three months ended September 30, 2005 were $736.8 million, a decrease of 2.3 percent compared to $754.2 million for the three months ended September 30, 2004. This reflects a decline of 12.2 percent in the Company’s worldwide reinsurance business, excluding reinstatement premiums, compared to the third quarter of 2004, offset by a 22.9 percent increase in U.S. specialty insurance business. Net premiums written during the third quarter of 2005 were $634.3 million, a decrease of 5.5 percent over the prior year’s third quarter’s net premiums written of $671.3 million.
ÃƒÂ¢??The Company’s third quarter 2005 results include catastrophe losses, net of applicable reinstatement premiums, of $206.3 million after tax, or $3.11 per diluted share. Third quarter 2004 includes catastrophe losses, net of applicable reinstatement premiums, of $65.3 million after tax, or $0.93 per diluted share, including losses from the four Florida hurricanes which occurred during the period. The combined ratio for the third quarter of 2005 was 145.0 percent, which includes catastrophe losses of 53.5 percent, versus a combined ratio of 106.9 percent for the comparable 2004 period, which includes catastrophe losses of 17.0 percent.ÃƒÂ¢??
For the nine months ended September 30, 2005, Odyssey Re reported a net loss of $17.7 million as compared to net income of $136 million for the first nine months of 2004. It also said: ÃƒÂ¢??Gross premiums written for the nine months ended September 30, 2005 were $2.02 billion, a 1 percent increase from $2.00 billion during the comparable period in 2004, while net premiums written over the same period increased 1 percent to $1.79 billion.
ÃƒÂ¢??The combined ratio for the first nine months of 2005 was 113.8 percent as compared to 99.0 percent for the first nine months of 2004.”
Commenting on the third quarter, Andrew A. Barnard, President and CEO, stated: “Hurricanes Katrina and Rita have served as painful reminders to the industry of the need to practice disciplined underwriting and risk management. We believe these events will lead to improved terms and conditions across the market and renewed growth opportunities for Odyssey Re through 2006.”
The full report can be obtained on the companyÃƒÂ¢??s Website at: http://www.odysseyre.com, under the heading Investor Info.
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