Tianjin explosions dent Allied World profits
Re/insurance firm Allied World has suffered a blow to its profits in the third quarter of the year, due to the cost of the explosions in the port of Tianjin, China, earlier this year.
The firm reported a net loss of $51.6 million for the third quarter of 2015 compared with net income of $30.9 million for the third quarter of 2014 as the company suffered net catastrophe losses of $28.9 million from the explosions, as well as net realised investment losses of $113.6 million.
Allied World did however experience a 6.5 percent increase in gross written premiums (GWP) in the third quarter to $754.1 million, compared with $707.9 million in the third quarter of 2014.
Net premiums also increased by 20.1 percent compared with the prior year quarter to $650.7 million.This was driven by organic growth and the recently acquired Asian operations.
Allied World's combined ratio for the quarter was 95.8 percent compared to 91.7 percent in the third quarter of 2014.
"Despite a challenging investment environment and a large event loss, we believe we are well positioned to create shareholder value,” commented president and chief executive officer Scott Carmilani. “We continue to be excited about the attractive platform we have built over the last few years."
