Allied World Assurance Company Holdings last night reported strong full-year 2012 results despite taking a hard hit from Hurricane Sandy in the fourth quarter.Net income for the year was $493 million, compared to a net income of $274.5 million for the whole of 2011.The Switzerland-based re/insurer with substantial operations in Bermuda did however, post a substantial loss in profits for last three months of the year, which it attributes mostly to claims related to Superstorm Sandy. The company posted a net loss of $41.1 million for the fourth quarter, compared to the last quarter of 2011 when the company reported a net income of $183.1 million.Allied World also reported an operating loss of $55.4 million, or $1.58 per diluted share for the fourth quarter, compared to an operating income of $94.7 million, or $2.40 per diluted share for the same period in 2011. Despite the loss, the company managed to beat out the expectations of the nine analysts polled by Yahoo Finance who estimated losses of about $1.96 per share.Hurricane Sandy also affected the company’s combined ratio for the fourth quarter, which was 116.5 percent compared to 83.5 percent in Q4 of 2011. Overall for the year however, the company reported a combined ratio or 94.5 percent — better than the 95.9 percent the year prior.The loss and loss expense ratio for the full year was impacted by $179.6 million, or 10.3 percentage points, from Superstorm Sandy and Hurricane Isaac and by $36.0 million, or 2.1 percentage points, of crop reinsurance losses. Compare that to the loss and loss expense ratio for the whole of the year prior, which was impacted by $292.2 million of net losses, or 20.2 percentage points, from 2011 global catastrophe activity.President and chief executive officer Scott Carmilani says despite the fourth quarter losses, he’s pleased with the company’s results."Allied World had a strong year in 2012,” Mr Carmilani said. “While Superstorm Sandy tempered our fourth quarter underwriting results, we still generated $493 million of net income for the full year, continuing to build value for our shareholders.“Our diluted book value per share grew by over 15 percent in 2012, to $92.59. The company's top line production grew by 20 percent to $2.3 billion in gross premiums written for the year, and we were able to achieve targeted growth in all three of our business segments.""Our company continues to capitalise on our various book value drivers including our expanded breadth and diversity of underwriting platforms, strong investment acumen, responsible reserving and capital management flexibility,” Mr Carmilani added. “ I believe these strengths have Allied World well positioned as we move into 2013 and beyond."Gross premiums written were $497.1 million in fourth quarter of 2012, a 19.3 percent increase compared to the $416.5 million reported in the fourth quarter of 2011. For the full year, gross premiums written totalled $2.3 billion a 20.1 percent increase compared to $1.9 billion for the whole of 2011.As of December 31, 2012, Allied’s total shareholders’ equity was $3.33 billion, compared to $3.14 billion as of the end of last year, while diluted book value per share was $92.59, an increase of 15.6 percent compared to $80.11 as of December 31, 2011.During the fourth quarter, the company repurchased 713,874 of its common shares through its share repurchase programme in the open market at an average price of $79.70 per share for an aggregate cost of $56.9 million.