ZUG, Switzerland—Allied World Assurance Co. Holdings A.G. said its net income dropped 58.7% to $274.5 million in 2011 compared with the previous year due in large part to catastrophes.
Zug, Switzerland-based Allied World said Wednesday that its gross written premiums grew 10.3% to $1.94 billion in 2011. Its combined ratio for the year deteriorated to 95.9% from the 84.9% registered in 2010.
“The 2011 loss and loss expense ratio was impacted by $292.2 million of net losses, or 20.1 percentage points, from global catastrophes occurring during 2011,” the company said in a statement. “This compares to 2010, which was impacted by $164.6 million of net losses, or 12.1 percentage points, from major loss events occurring during 2010.”
Net income for the fourth quarter grew 97.3% from a year earlier to $183.1 million. Gross written premiums grew 9.1% to $416.5 million. The fourth-quarter 2011 combined ratio deteriorated slightly to 83.5% from 82.8% during the same period of 2010.
“The company had a strong fourth quarter of 2011, producing operating income of $95 million and net income of $183 million,” President and CEO Scott Carmilani said in the statement.
“For the full year, we made $275 million in net income in spite of it being the costliest catastrophe year in history,” he said. The insurer was also hit by a merger breakup fee in 2011, he said, after the deal with Transatlantic Holdings Inc. was called off.
Still, 2011 investment returns “underperformed” compared with 2010 due to lower interest rates and a weaker overall investment environment, Mr. Carmilani said.
ZUG, Switzerland—Allied World Assurance Co. Holdings A.G. reported net income of $91.4 million during the first nine months of the year, an 84% drop compared with the same period in 2010.