View this article online: https://www.claimsjournal.com/news/national/2007/08/02/82232.htm
OneBeacon Insurance Group, Ltd. reported adjusted book value per share of $18.21, an increase of 8.3% through June 30, 2007 and 3.7% for the second quarter, including dividends.
For the 12 months ended June 30, 2007, adjusted comprehensive return on equity was 21.3% and adjusted operating return on equity was 11.0%.
“Halfway through the year, we continue to see strong growth in our adjusted book value driven by exceptional investment returns and solid underwriting results, which positions us for achieving our long-term goals,” said Mike Miller, CEO of OneBeacon. “Specialty and Commercial Lines had strong results for the quarter while Personal Lines, especially AutoOne, was challenged. We continue to invest in specialized teams of people, having recently bolstered our Commercial Lines presence in the Mid-States and Mountain States regions. For the balance of 2007, we will remain focused on
maintaining our underwriting discipline, taking appropriate steps to manage our expenses, and looking for new specialized opportunities.”
Second quarter adjusted operating income was $39 million or $0.39 per share and net income was $62 million or $0.62 per share. For the six months ended June 30, 2007, adjusted operating income was $77 million or $0.77 per share and net income was $123 million or $1.23 per share.
Primary Insurance Operations
The GAAP combined ratio was 97.0% for the second quarter versus 94.0% for the same period in 2006, primarily due to an increase in the expense ratio. The expense ratio was 36.1% for the second quarter, as compared to 33.1% for the second quarter of 2006, reflecting continued investments in new businesses and lower earned premiums, as well as 2.3 points recorded in the prior year period related to the favorable settlement of a state franchise tax audit and a reduction in contingent commission accruals. Pretax income in
the second quarter was $121 million as compared to $122 million in the second quarter of 2006.
Net written premiums were $485 million for the second quarter of 2007 as compared to $515 million in the second quarter of 2006. Through the first six months of 2007, net written premiums totaled $925 million as compared to $990 million through June 30, 2006. Excluding the Agri business that was sold in September 2006, net written premiums declined by 2% year-over-year in the second quarter and for the first six months of 2007. Second quarter Specialty Lines net written premiums increased by 34%, while Commercial Lines decreased 1% and Personal Lines were down 17%. The
Personal Lines decrease was principally driven by the expected shrink within AutoOne resulting from the diminishing assigned risk markets as well as increased competition for this business within the voluntary market. Through six months, Specialty Lines net
written premiums were up 27% over the prior year, Commercial Lines were up 1%, and Personal Lines decreased by 16%.
OneBeacon will host its second quarter 2007 Webcast for analysts and investors at 10:00 a.m. ET on Thursday, August 2.
Source: OneBeacon
www.onebeacon.com