Profits down at Allied World; reinsurance segment shrinks
Allied World, the Swiss-based re/insurer that was previously domiciled on Bermuda, posted a fall in profits and gross written premiums for the first quarter of 2015.
Its profits sank to $124.4 million in the first quarter of 2015, compared with $177 million in the first quarter of 2014, while its gross written premiums (GWP) shrank 2.3 percent to $880.6 million, compared with $901.4 million in the same period of the prior year.
Allied World’s reinsurance division posted GWP of $439.3 million for the first quarter of 2015, compared with $497.1 million in the first quarter of 2014.
Partially offsetting this was GWP growth in the re/insurer’s North American insurance and global markets insurance segment.
The North American insurance segment grew by 10.1 percent, led by growth across casualty lines. This was offset in part by a continued decrease in healthcare insurance.
Its global markets insurance segment grew by 11.9 percent on a constant dollar basis and 3.8 percent on an as reported basis. Allied World said this was driven by new lines of business, including onshore construction and marine liability, as well as growth across existing lines including general casualty and professional liability.
Allied World’s combined ratio deteriorated to 88.1 percent in the first quarter of 2015, compared with 79.9 percent in the first quarter of 2014.
Scott Carmilani, president and chief executive officer, said: “Allied World is off to a strong start in 2015. Our North American Insurance segment continues to gain scale and see attractive rate increases. We are pleased to have completed our acquisitions of the RSA Hong Kong and Singapore operations and are looking forward to completing the combination of our platforms as we continue to grow our global markets insurance segment."
