Reinsurance segment drags down GWP at Allied World

Allied World, the Swiss-based re/insurer with Bermuda offices, reported a fall in profits and gross written premiums in the first quarter of 2016.

The company’s net income fell to $74.1 million in the first quarter of 2016, compared with $124.4 million for the first quarter of 2015.

Its gross written premiums fell 1.9 percent to $863.5 million in the first quarter of 2016, compared with $880.6 million in the first quarter of 2015.

The decrease was mainly driven by a decline of 16 percent in its reinsurance segment. Allied World said this was “driven largely by the reduction in property catastrophe risk as well as the non-renewal of certain other property and casualty treaties”.

This was partially offset by growth in the global markets insurance segment which grew 94.7 percent on a constant dollar basis driven by the inclusion of the acquired Asian operations.

The North American insurance segment remained essentially unchanged, led by growth across programmes and environmental businesses, offset in part by declines in primary casualty, healthcare, and property businesses.

Its combined ratio was deteriorated considerably to 96 percent in the first quarter of 2016, compared with 88.1 percent for the first quarter of 2015.

Scott Carmilani, president and chief executive officer, said:  "We are pleased at the positive contributions from our investment portfolio and solid underwriting results this quarter.

“Although market conditions remain challenging, we continue to find attractive opportunities while maintaining our strong focus on risk selection and capital management."