Alleghany Q3 results impacted by $491m cat losses
Property/casualty re/insurer Alleghany Corporation reported a net loss of $314.2 million for the 2017 third quarter, compared with net earnings of $155.8 million in the 2016 third quarter.
After-tax net catastrophe losses, including reinstatement premiums earned were $491 million for the third quarter of 2017. This compares with net after-tax catastrophe losses of approximately $21 million for the third quarter of 2016. Of the total nat cat losses in the third quarter of 2017, $461.4 million was from Hurricanes Harvey, Irma and Maria.
The consolidated re/insurance combined ratio was 152.4 percent in the third quarter of 2017, compared with 91.0 percent in the third quarter of 2016.
“Our results reflect large catastrophe losses in the third quarter of 2017, primarily arising from three hurricanes,” said CEO Weston Hicks.
“We are pleased that our rigorous risk management protocols stood up to the test, and our (re)insurance subsidiaries are well-positioned to continue to serve their customers and markets. We continue to have a strong balance sheet and excellent liquidity.”
Underwriting losses were $650.4 million compared to an underwriting profit of $111.9 million in the third quarter of 2016. Net premiums written grew 1.9 percent year on year to $1.26 billion in the third quarter. Net investment income dropped 13.2 percent year on year to $104.7 million in the third quarter of 2017.
Alleghany Corporation owns and operates subsidiaries and investments, anchored by a core position in property/casualty re/insurance. Alleghany's property/casualty subsidiaries include reinsurer Transatlantic Holdings, property and liability specialty insurer RSUI Group, and commercial property/casualty and surety insurer CapSpecialty.
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