View this article online: https://www.claimsjournal.com/news/international/2007/05/09/79554.htm
The Bermuda-based Max Capital Group Ltd. reported net income for the three months ended March 31, 2007, of $80.0 million, or $1.24 per diluted share, compared to net income of $75.3 million, or $1.19 per diluted share, for the three months ended March 31, 2006.
Net operating income, which excludes capital gains/losses for the period was slightly higher at $81.0 million, or $1.26 per diluted share, compared with net operating income of $76.9 million, or $1.21 per diluted share, for the three months ended March 31, 2006.
Chairman and CEO W. Marston Becker commented: “Our solid underwriting results, coupled with strong investment returns, have provided a great start to 2007. We continue to emphasize balance and diversification in our underwriting, which we believe will result in consistent positive returns over time.
“While our first quarter 2007 gross premium written is lower than the same period in 2006, it is in line with our 2007 budgeted production. I am also pleased to note that subsequent to March 31, 2007, as previously announced, we completed the establishment of our U.S.-based excess and surplus lines platform, Max Specialty Insurance Company, and have commenced underwriting excess and surplus lines business in niche markets.”
In a separate bulletin Max Capital announced that its Board of Directors had approved payment of a quarterly dividend of seven cents per share.
The Board also increased Max Capital’s share repurchase plan. As of the end of March 2007, the Company had reacquired 795,100 common shares at an average price per share of $24.69 under the board-approved share repurchase plan. The Board has now approved “an increase in the share repurchase plan, increasing the dollar value of shares that may be repurchased to $50.0 million from the $16.4 million remaining under the previous share repurchase authorization.”
Additional earnings highlights included the following:
— Gross premiums written for the three months ended March 31, 2007 were $213.6 million, of which $213.0 million came from property and casualty underwriting and $0.6 million from life and annuity underwriting, compared to $255.9 million, of which $255.1 million came from property and casualty underwriting and $0.8 million from life and annuity underwriting, for the three months ended March 31, 2006.
— Reinsurance and insurance products accounted for 63.4 percent and 36.6 percent, respectively, of property and casualty gross premiums written in the three months ended March 31, 2007, compared to 72.5 percent and 27.5 percent, respectively, of property and casualty gross premiums written for the three months ended March 31, 2006.
— Net premiums earned for the three months ended March 31, 2007 were $139.4 million compared to $159.8 million for the same period of 2006. The decline in net premiums earned for the three months ended March 31, 2007, principally reflects the increase in our use of reinsurance in order to manage our net exposure retained.
— Net investment income for the three months ended March 31, 2007, increased to $42.8 million from $34.0 million for the same period in 2006. The increase is principally attributable to a year-over-year increase in cash and fixed maturities balances and higher yields on fixed-maturity investments.
— Total revenue for the three months ended March 31, 2007, decreased 4.8 percent to $235.6 million, compared to $247.5 million for the same period in 2006. The decline in revenue in the three months to March 31, 2007, is principally attributable to the 12.7 percent decrease in net premiums earned over the same period in 2006, partially offset by the increase in net investment income.
The full report and additional information may be obtained on the Company’s web site under its new name: http://www.maxcapgroup.com.