Offshore underwriters Everest Re Group Ltd. and Allied World Assurance Co. Holdings A.G. have reported improved second-quarter results.
Hamilton, Bermuda-based Everest Re on Wednesday reported second-quarter net income of $290.2 million, up 5.2% from the same period last year as both revenue and premiums grew.
Revenue for the three months ended June 30 were $1.45 billion, up 7.2% from the year-ago period, while gross written premiums rose 12.0% to $1.40 billion.
The company's second-quarter combined ratio improved to 84.7% from 87.6% in the year-ago period even as investment income slipped 11.8% to $131.2 million.
For the six months ended June 30, Everest Re's net income was off 11.5% to $584.1 million while revenue inched up 0.5% to $2.74 billion.
“Everest continues to generate strong earnings despite a challenging marketplace,” Dominic J. Addesso, president and CEO, said in the company's earnings statement. “We are seeing select opportunities. We continue to strategically maneuver our underwriting portfolio to find the best opportunities and look forward to continuing this strong pace through the remainder of the year.”
Allied World returns to profit
Also Wednesday, Zug, Switzerland-based Allied World swung to a profit of $151.9 million for the three months ended June 30 after a loss of $1.9 million in the same period last year as revenue jumped.
Second-quarter 2013 results had been hampered by a $115.2 million net realized investment loss, Allied World said in its earnings release.
The company’s revenue for the second quarter of this year jumped 53.4% to $659.3 million as net written premiums slipped 4.7% to $553.9 million.
Second-quarter net investment income was off 2.2% to $36.8 million while the company’s combined ratio for the quarter was 90.3% compared with 82.8% in the year-ago period. “The loss and loss expense ratio was 58.6% in the second quarter of 2014 compared to 54.2% in the prior-year quarter,” Allied World said. Additionally, “The company's expense ratio was 31.7% for the second quarter of 2014 compared to 28.6% for the second quarter of 2013. The increase was driven by various profit commissions as well as the impact of new hires and higher stock price on compensation expense.”
For the six months ended June 30, net income more than doubled to $328.8 million as revenues rose 28.4% to $1.29 billion.
Six-month net written premiums increased 3.9% to $1.33 billion while the company’s combined ratio deteriorated to 85.1% from 83.9% during the same period last year.
“Allied World delivered another solid result for the first half of 2014. As evidenced by an 85% combined ratio, our disciplined underwriting philosophy, combined with improved investment performance, drove the year-to-date 8.1% growth in diluted book value per share,” Scott Carmilani, president and CEO, said in the company’s earnings statement.