Allied World net income down 58.7 percent

Allied World has announced that its net income fell from $665 million in 2010 to $274 million in 2011.

However gross written premiums rose in 2011 to $1.98 billion, from $1.75 billion in 2010.

“Collectively, our gross production was up by 10 percent for the year with our new business initiatives driving the increase,” says Scott Carmilani, president and chief executive officer of Allied World.

“The company had a strong fourth quarter of 2011, producing operating income of $95 million and net income of $183 million. For the full year, we made $275 million in net income in spite of it being the costliest catastrophe year in history.

“We benefited from continued favourable loss reserve emergence that significantly offset our catastrophe losses for the year as well as from a merger breakup fee. The investment returns underperformed 2010 due to lower interest rates and a weaker overall investment environment.”