Allied World profits drop in nine-month period

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.

Allied World’s gross written premiums for the period grew 10.6% to $1.52 billion, with total revenues of $1.23 billion, a drop of 18.3% from the same period a year earlier.

Zug, Switzerland-based Allied World’s combined ratio for the period deteriorated 15.1 points to 100.7%, the company reported Thursday.

Third-quarter loss

The company reported a net loss of $11 million for the third quarter compared with net income of $254.5 million during the same period a year earlier. Total revenues for the quarter dropped 37.3% to $323.4 million. Gross written premiums for the third quarter grew 17.0% to $443.0 million. The combined ratio for the quarter deteriorated 13.6 points to 83.9%.

“Allied World is pleased to report strong operating returns in the third quarter of 2011,” President and CEO Scott Carmilani said in a statement announcing the third-quarter results. “Despite the catastrophe activity in the quarter, the company was able to generate operating income of $2.19 per diluted share which equates to 11.5% operating return on equity on an annualized basis.”

He added that each of the company’s operating segments experienced favorable premium growth during the quarter.