Takeover target Allied World reports loss
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Allied World Assurance Co. Holdings A.G. reported on Wednesday a fourth-quarter net loss of $40.9 million, compared with a profit of $1.7 million a year ago.
Zug, Switzerland-based Allied World said in a statement that $101.9 million in net realized losses for the quarter contributed significantly to the year-over-year decrease in total return, as rising yields had a negative impact on its fixed income portfolio. The prior year period included net realized losses of $38.8 million.
Net premiums written for the quarter totaled $44.5 million, compared with $46.4 million in the fourth quarter of 2015. The combined ratio was 99.8%, compared with 97% in the fourth quarter of 2015.
During the fourth quarter, Allied World recorded $49.9 million in net catastrophe losses, compared with no reported catastrophe losses in the fourth quarter of 2015.
In December, Toronto-based insurance group Fairfax Financial Holdings Ltd. agreed to buy Allied World for $4.9 billion in cash and stock.
Full year net income totaled $255.2 million, compared with net income of $83.9 million in the prior year. The combined ratio for the year was deteriorated to 96.2%, compared with 95.1% in 2015.
President and CEO Scott Carmilani said in a statement: “We are very excited to become a part of the Fairfax family of companies and believe this combination will better position us to grow our specialty businesses globally in 2017 and beyond.”
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Swiss insurer Allied World Assurance Co. Holdings A.G. posted net income of $68.6 million in the third quarter, compared with a loss of $51.6 million in the same period previous year, The Royal Gazette reports. Operating income totaled $55.2 million, up from $51.1 million in the third quarter of 2015. The insurer reported revenue of $636.5 million during the quarter.
