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Member, Beacon International Group, Ltd.
ZUG, Switzerland--Converium Holding Ltd. reported $25.5 million in net income in the first quarter of this year, an 11.1% decrease from the same period in 2002.
The Switzerland-based reinsurer cited a drop in investment earnings to $47.9 million--a 25.6% decline from the same period last year--and disappointing results from its Converium Life operation as significant factors in the company's overall first-quarter performance.
Converium Life reported a $17.3 million loss in this year's first quarter, compared with a $2.2 million profit in the first quarter of 2002.
Converium said its nonlife business showed strong growth during the quarter, though. Nonlife gross written premiums increased 34.2% in the first quarter, to nearly $1.18 billion. The company's nonlife combined ratio declined to 98.3% for the first quarter from 102.4% for the first three months of 2002.
Converium reported total gross written premiums of more than $1.26 billion in the first quarter, a 34.3% increase over the same period last year.
"I am very pleased by the development of our nonlife operations," Dirk Lohmann, Converium's chief executive officer, said in a statement. "A combined ratio of 98.3% and no material net adverse developments from prior years are the clear result of our re-underwriting efforts and the reserve actions we took in the last years."