OneBeacon Insurance Group, Ltd. (OB) has reported 63.88 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $8.20 million, or $0.09 a share in the quarter, compared with $22.70 million, or $0.24 a share for the same period last year. Revenue during the quarter dropped 9.55 percent to $267.90 million from $296.20 million in the previous year period.
Total expenses come down
Operating income for the quarter was $2 million, compared with $11.10 million in the previous year period. Net investment income was at $12.30 million for the quarter, down 4.65 percent or $0.60 million from year-ago period. The company has booked a loss on investments of $19.10 million in the quarter compared with a loss of $5.40 million for the previous year period.
Mike Miller, Chief executive officer of OneBeacon, said, “We are pleased to have delivered solid 11% growth in book value per share in 2016. Investment results reflect the benefits of our short-duration fixed-maturity portfolio in a rising interest rate environment and a decent lift from our allocation to risk assets. Underwriting results reflect the strong performance of our portfolio of specialty businesses. Going into 2017, we are positioned to continue delivering good underwriting results across our diverse portfolio of businesses.”
Assets, liabilities fall
Total assets were almost stable over the past one year at $3,589.90 million on Dec. 31, 2016. On the other hand, total liabilities were at $2,564.70 million as on Dec. 31, 2016, down 1.36 percent or $35.30 million from year-ago. Return on assets stood at 0.33 percent in the quarter, down 0.40 from 0.73 percent in the last year period. At the same time, return on equity was at 0.80 percent in the quarter, down 1.46 from 2.26 percent in the last year period.
Investments move up marginally
Investments stood at $2,620.40 million as on Dec. 31, 2016, up 1.12 percent or $29 million from year-ago. Meanwhile, yield on investments went down 3 basis points to 0.47 percent in the quarter. Meanwhile, reinsurance recoverables moved down 7.24 percent or $14 million over the year to $179.50 million on Dec. 31, 2016.
Total debt was almost stable over the past one year at $273.20 million on Dec. 31, 2016. Shareholders equity stood at $1,025.20 million as on Dec. 31, 2016, up 2.06 percent or $20.70 million from year-ago. As a result, debt to equity ratio went down 1 basis points to 0.27 percent in the quarter from 0.27 percent in the last year period.
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