Alterra Capital First Quarter 2012 Results
Bermuda-based Alterra Capital Holdings Limited reported net income of $79.0 million, or $0.77 per diluted share, for the first quarter of 2012, compared to a net loss of $46.7 million, or $0.44 per diluted share, for the same quarter of 2011.
Net operating income for the first quarter of 2012 was $67.8 million, or $0.66 per diluted share, compared to a net operating loss of $24.7 million, or $0.23 per diluted share, for the same quarter of 2011. Annualized net operating return on average shareholders’ equity for the first quarter of 2012 was 9.6%.
W. Marston (Marty) Becker, President and Chief Executive Officer of Alterra, said: “We started the year off with a solid quarter and the financial results reflect a good balance between underwriting and investment performance. Our operating return on equity was just under 10%, making this the fourth consecutive quarter in which we have grown book value per share.
“Alterra’s newer segments and teams in U.S. insurance, Alterra at Lloyd’s and Latin America are still maturing, and with modest levels of earned premium are showing expense ratios that are higher than our ultimate expectations. While our selected loss ratios for these segments and teams will remain conservative until we see more actual loss experience, we are pleased with their progress to date.”
“The market has firmed materially for any risk that has property catastrophe exposure, and has firmed somewhat for certain other lines of business. It is encouraging to us that the remaining rates are no longer going down, and that terms and conditions are generally more balanced. We continue to expect positive rate movement through the balance of 2012, and believe Alterra is well positioned to take advantage of underwriting opportunities as better times return,” Mr. Becker concluded.
