Allied World gross written premium rises 8%
Bermuda-based Allied World recorded an 8% jump in gross written premium in the second quarter while its combined ratio worsened to 92.3% from 91% in the same period in 2023.
The re/insurer's GWP rose to $2.02 billion from $1.87 billion in the second quarter while net premium written improved 8.4% to $1.424 billion from $1.31 billion in the same period in 2023.
The statistics were released as part of parent company Fairfax Financial Holdings' quarterly results. The Toronto-based holding company said it earned $915.4 million in the quarter, up from $734 million in the same period in 2023.
The company's global insurers and reinsurers' segment, which consolidates Allied World's results with Brit Insurance and Odyssey Group, produced an insurance service result of $671.1 million, down from $820.4 million in 2023.
The company also said it completed an offering $600 million in 30-year 6.1% senior notes for which Allied World became the co-obligor in return for receiving $506 million in cash, the majority of which Allied World used to redeem all of its outstanding $500 million principal amount of 4.35% senior notes due 2025.
"In the second quarter of 2024 our property and casualty insurance and reinsurance operations produced adjusted operating income of $1,119.4 million up from $913.5 million in the second quarter of 2023, primarily reflecting increased interest and dividends and share of profit of associates," said Fairfax chief executive officer Prem Watsa.
"Our underwriting performance in the second quarter of 2024 continued to produce favourable results with our insurance and reinsurance companies reporting a consolidated combined ratio of 93.9% and consolidated underwriting profit of $370.4 million, on an undiscounted basis.
"Gross and net premiums written grew by 10.8% and 11.5%, reflecting the acquisition of Gulf Insurance, which added $815.9 million in gross premiums written and $523.8 million in net premiums written. Excluding Gulf Insurance, gross premiums written grew by 0.6% and net premiums written grew by 3.0%."
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