Allied World Assurance Company has reported a 19 percent decrease in its reinsurance business in the second quarter of 2014 thanks to lower premiums across most lines of business.
The decline in reinsurance was countered by growth in other lines. Its US insurance segment grew by 11.1 percent, led by growth in general casualty, inland marine and representations and warranties insurance, but offset by a continued decrease in healthcare insurance.
It added that its international insurance segment grew by 6.2 percent driven by more recently added lines of insurance business in Europe including aviation and marine cargo as well as growth across existing lines.
Its overall gross premiums written in the quarter were $760.4 million, a 0.6 percent decrease compared to $765.2 million in the second quarter of 2013.
The company’s net income increased to $151.9 million for the second quarter of 2014 compared with a net loss of $1.9 million in the second quarter of 2013.
Its net premiums written decreased to $553.9 million, a 4.7 percent decrease compared to $581.2 million in the second quarter of 2013.
The company’s combined ratio increased to 90.3 percent compared to 82.8 percent in the second quarter of 2013.
Scott Carmilani, president and chief executive officer, said: "Allied World delivered another solid result for the first half of 2014. As evidenced by an 85 percent combined ratio, our disciplined underwriting philosophy, combined with improved investment performance, drove the year to date 8.1 percent growth in diluted book value per share."
Allied World, Second Quarter 2014 Results, North America, Scott Carmilani