Allied World reports $68.6m profit
Allied World Assurance Company has reported third-quarter net income of $68.6 million.
The firm made a loss of $51.6 million in the same period last year.
Operating income for the quarter totalled $55.2 million for the quarter compared to $51.1 million in same period of 2015.
Scott Carmilani, CEO and president of Allied World, said: “I am pleased that we were able to generate a 96.2 per cent combined ratio and strong investment returns which resulted in net income of $68.6 million, in spite of some large loss events that took place in the quarter.”
The firm saw $4.9 million in catastrophe losses due to the Texas hailstorms in the second-quarter of the year.
The Swiss-based company said it had net income of 77 cents per share. Earnings, adjusted for investment gains, came to 62 cents per share.
The results fell short of Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 65 cents per share.
The insurance company posted revenue of $636.5 million in the period.
Allied World shares have increased 16 per cent since the beginning of the year. In the final minutes of trading yesterday, shares hit $42.98.