Reinsurance drives strong Q1 growth for Allied World
Allied World Assurance Company posted growth of almost 8 percent in the first quarter of 2014 compared with the same period last year as the business enjoyed growth across all lines of business but reinsurance in particular.
Allied World’s gross premiums written were $901.4 million in the first quarter, a 7.7 percent increase compared with the $837.1 million it wrote in the first quarter of 2013. The company said this was driven by growth across all three of its business segments.
Its US insurance division grew by 5.4 percent led by growth in the excess casualty business; its international insurance unit grew by 4.6 percent driven by new lines of business including aviation and marine cargo as well as growth across existing lines; and its reinsurance segment grew by 9.8 percent driven in part by its participation in Aeolus Re and selected growth in its crop lines of business.
The business also posted improved profits helped by low catastrophe losses and favourable reserve development. It posted a net profit of $177 million for the first quarter of 2014 compared with $159 million for the first quarter of 2013. Its combined ratio improved slightly to 79.9 percent compared with 85.1 percent in the first quarter of 2013.
Its operating income for the period was $129.9 million compared with $84.2 million the year before. Its underwriting income was $106.9 million compared with $68.7 million in the first quarter of 2013.
“Allied World is off to a great start in 2014,” said Scott Carmilani, president and chief executive of Allied World. “Premium growth in selected products and record underwriting income drove our combined ratio below 80 percent. Our focus on solid underwriting and investment expertise generated 4.4 percent growth in diluted book value per share. We remain well positioned to take advantage of opportunities across the market.”
