Allied World Assurance Co Holdings, AG (AWH) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $40.88 million, or $ 0.47 a share in the quarter, against a net profit of $1.71 million, or $0.02 a share in the last year period.
Revenue during the quarter dropped 15.15 percent to $537.98 million from $634.04 million in the previous year period. Net premium earned for the quarter declined 7.36 percent or $45.83 million to $576.98 million. During the quarter, the company has written premium worth $445.33 million on net basis, down 4.19 percent or $19.49 million.
Total expenses come down
Operating loss for the quarter was $53.40 million, compared with an operating income of $6.62 million in the previous year period.
Net investment income was at $58.13 million for the quarter, up 18.40 percent or $9.03 million from year-ago period. The company has booked a loss on investments of $101.95 million in the quarter compared with a loss of $38.85 million for the previous year period.
President and chief executive officer, Scott Carmilani commented, "Allied World had a very good year in 2016 despite a challenging operating environment and an increase in natural catastrophes during the fourth quarter. For the full year, I am pleased that our 96.2% combined ratio and solid contributions from the investment portfolio helped generate an 8.3% return on tangible equity and grow our basic book value per share by 5.0%. Looking ahead, we are very excited to become a part of the Fairfax family of companies and believe this combination will better position us to grow our specialty businesses globally in 2017 and beyond."
Assets, liabilities fall
Total assets decreased 2.46 percent or $332.91 million to $13,179.03 million on Dec. 31, 2016. On the other hand, total liabilities were at $9,627.15 million as on Dec. 31, 2016, down 3.53 percent or $352.25 million from year-ago.
Return on assets was negative at 0.23 percent in the quarter against a positive 0.15 percent in the last year period. Return on equity was negative at 1.15 percent in the quarter against a positive 0.05 percent in the last year period.
Investments come down
Investments stood at $7,942.30 million as on Dec. 31, 2016, down 7.34 percent or $628.97 million from year-ago. Meanwhile, yield on investments went up 16 basis points to 0.73 percent in the quarter.
Net premiums and other receivables increased 5.10 percent or $38.07 million over the year to $783.96 million on Dec. 31, 2016. Meanwhile, reinsurance recoverables moved up 9.70 percent or $152.93 million over the year to $1,729.33 million on Dec. 31, 2016.
Total debt was at $816.14 million as on Dec. 31, 2016, down 37.98 percent or $499.80 million from year-ago. Shareholders equity stood at $3,551.88 million as on Dec. 31, 2016, up 0.55 percent or $19.38 million from year-ago. As a result, debt to equity ratio went down 14 basis points to 0.23 percent in the quarter from 0.37 percent in the last year period.
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