ALLIED WORLD SWINGS TO THIRD-QUARTER INCOME ON REALISED GAINS

Switzerland-based, US-listed insurer and reinsurer Allied World Assurance Co Holdings swung to third-quarter net income of $68.6m from a year-earlier loss of $51.6m thanks to a swing to $10.7m in realised investment gains from losses of $113.6m. Operating income per share came to 62¢, beating analysts’ forecast of 59¢. Underwriting income for the period fell to $21.5m from $27.9m, as earned premiums dropped 10.2% to $584.1m and incurred losses decreased 9.7% to $376.3m. The combined ratio added 0.4 points to 96.2%. Underwriting income in the group’s reinsurance segment rose 59% to $38.1m, but that increase was offset, as income in the North American insurance segment fell 38% to $10.3m and the underwriting loss in the global markets insurance segment nearly doubled to $26.8m. For the first nine months of the year, Allied World’s net earnings more than tripled to $296.1m from $82.2m, reflecting a swing to $104m in realised gains from losses of $88.8m. Year-to-date underwriting income decreased by 11.1% to $90m, as a widening loss in the global markets insurance segment offset increases in income in the reinsurance and North American insurance segments. Earned premiums dropped 5.3% to $1.77bn and incurred losses declined 5.1% to $1.11bn.