Allied World 2011 Q2 Net Income: $93.8M
Allied World reported net income of $93.8 million for the 2011 second quarter, a reduction from last year’s $184 million.
A statement released by the Company said, “Allied World Assurance Company Holdings reported net income of $93.8 million, or $2.36 per diluted share, for the second quarter of 2011 compared to net income of $184.0 million, or $3.47 per diluted share, for the second quarter of 2010.”
“Net income for the six months ended June 30, 2011 was $102.4 million, or $2.57 per diluted share, compared to net income of $317.7 million, or $5.98 per diluted share, for the first six months of 2010.
“The company reported operating income of $44.2 million, or $1.11 per diluted share, for the second quarter of 2011 compared to operating income of $95.7 million, or $1.80 per diluted share, for the second quarter of 2010.”
“Operating income for the six months ended June 30, 2011 was $2.8 million, or $0.07 per diluted share, compared to operating income of $157.0 million, or $2.96 per diluted share, for the first six months of 2010.”
President and Chief Executive Officer Scott Carmilani commented, “Allied World’s demonstrated track record of profitably managing our business through challenging markets was again on display this quarter. Despite continued industry-wide catastrophe losses, we have again contained our share of these losses as a percentage of equity well below the industry average.”
“Simultaneously, we continue to build out our specialty insurance franchise highlighted by the 20% growth experienced in our U.S. insurance segment in the quarter. This segment continues to gain traction in targeted specialty lines due to our expansion efforts and new business initiatives over the last three years.
“During the quarter, the company’s financial strength rating was upgraded to A ‘Strong’ by Standard & Poor’s. We are gratified that our efforts in building a strong, well-controlled, profitable specialty insurance and reinsurance franchise have resulted in this upgrade.”
Mr. Carmilani continued, “We remain excited about our pending merger of equals with Transatlantic and believe that the combination will create a truly global insurance and reinsurance franchise.”
“Upon closing the merger in the fourth quarter, Allied World and Transatlantic will become TransAllied, operating with very strong financial strength ratings, enhanced competitive strength and a significant global presence. I am confident we are well positioned for continued success as we build a more formidable franchise with a record of success throughout all turns in the insurance and reinsurance market cycle.”
