Allied World gross written premiums rise in Q3

Bermuda-based Allied World increased its gross written premiums by 3% in the third quarter to $1.67 billion.  

The re/insurer’s GWP over nine months increased 5.9% to $5.7 billion. 

Its combined ratio improved to 88.5% from 89.3% in the quarter while it slipped from 90.6% to 91% for the first nine months of the year. 

The results were contained within Fairfax Financial Holdings’ third quarter results.  The parent company had net income of $1.03 billion, down from $1.07 billion in the third quarter of 2023 while nine-month earnings fell from $3.,05 billion to $2.7 billion. 

The decline was largely due to increases in finance expenses, interest expenses, corporate overheads and income tax provisions, which offset a rise in insurance operating income from $1.4 billion to $1.5 billion. 

“Our underwriting performance in the third quarter of 2024 was outstanding, with our property and casualty insurance and reinsurance companies reporting a consolidated combined ratio of 93.9% and consolidated underwriting profit of $389.7 million, on an undiscounted basis, despite higher current period catastrophe losses of $434.5 million,” said Prem Watsa (pictured), chairman and chief executive officer.

“Gross and net premiums written grew by 13.9% and 10%, reflecting the acquisition of Gulf Insurance, which added $778.4 million in gross premiums written and $420.5 million in net premiums written. Excluding Gulf Insurance, gross and net premiums written grew by 3.2% and 2.8%.

"Net gains on investments of $1,287.3 million in the quarter was principally comprised of mark to market gains on bonds of $828.6 million and mark to market gains on common stocks of $322.9 million.

"We remain focused on being soundly financed and ended the quarter with approximately $2.0 billion of cash and marketable securities and an additional $2.1 billion, at fair value, of investments in associates and consolidated non-insurance companies owned by the holding company.”

Allied World also recorded net written premiums of $1.12 billion, up 2.1% from $1.1 billion while nine-month net written premiums  rose 6.2% from $3.87 billion to $4.12 billion. 

Brit, which is expanding its operations in Bermuda, saw gross written premiums in the third quarter drop 3.8% from $923.5 million to $888.8 million while its nine-month NPW fell 3% from $2.93 million to $2.84 billion.

Its combined ratio worsened in the third quarter from 94% to 94.2% but improved over the first nine months from 93.2% to 92.2%. 

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