NATIONAL GENERAL SWINGS TO LOSS ON TAX CHARGE AND INVESTMENT LOSS

US personal-lines group National General swung to a fourth-quarter net loss of $9.9m from income of $39.2m, reflecting a $25.8m charge in connection with recent US tax reforms and a swing to $7.5m in losses on equity-method investments. Operating earnings fell to $30.0m from $32.8m. The quarterly combined ratio improved by 1.4 points to 98.6% as underwriting income rose to $11.9m from $469,000. Gross written premiums rose 30% to $1.07bn, reflecting organic growth in property/casualty lines and the acquisition of Direct General. For the full year, the New York-based group’s net income fell 51% to $74.3m as underwriting income fell 33% on higher catastrophe losses and it booked a $24m swing to equity-method investment losses. The combined ratio added 1.9 points to 96.1%, while gross written premiums grew 34% to $4.38bn.