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8-K - FORM 8-K - ALTERRA CAPITAL HOLDINGS Ltd | d256092d8k.htm |
Investor Presentation
Quarter Ended September 30, 2011
Exhibit 99.1 |
2
This presentation may include forward-looking statements that reflect
Alterras current views with respect to future events and
financial
performance.
Statements
that
include
the
words
expect,
intend,
plan,
believe,
project,
anticipate,
will,
may
and similar statements of a future or forward-looking nature identify
forward-looking statements. All forward- looking statements address
matters that involve risks and uncertainties. Accordingly, there are important factors that
could cause actual results to differ materially from those indicated in such
statements and you should not place undue reliance on any such statements.
These factors include, but are not limited to, the following: (1) the
adequacy of loss and benefit reserves and the need to adjust such reserves
as claims develop over time; (2) the failure of any of the loss limitation methods employed; (3) the
effect of cyclical trends, including with respect to demand and pricing in the
insurance and reinsurance markets; (4) changes in general economic
conditions, including changes in capital and credit markets; (5) any lowering or loss of
financial ratings; (6) the occurrence of natural or man-made catastrophic
events with a frequency or severity exceeding expectations; (7) actions by
competitors, including consolidation; (8) the effects of emerging claims and coverage issues;
(9) the loss of business provided to Alterra by its major brokers; (10) the effect
on Alterras investment portfolio of changing financial market
conditions, including inflation, interest rates, liquidity and other factors; (11) tax and regulatory
changes and conditions; (12) retention of key personnel; (13) the integration of
new business ventures Alterra may enter into; and (14) managements
response to any of the aforementioned factors. The foregoing review of
important factors should not be construed as exhaustive and should be read in conjunction with
the other cautionary statements that are included herein and elsewhere, including
the Risk Factors included in Alterras most recent reports on Form
10-K and Form 10-Q and other documents on file with the Securities and Exchange
Commission. Any forward-looking statements made in this presentation are
qualified by these cautionary statements, and there can be no assurance that
the actual results or developments anticipated by Alterra will be realized or, even if
substantially realized, that they will have the expected consequences to, or
effects on, Alterra or its business or operations. Alterra undertakes no
obligation to update publicly or revise any forward-looking statement, whether as a
result of new information, future developments or otherwise.
Cautionary Note Regarding Forward-Looking Statements
|
3
Alterras Franchise is Well Positioned For Success
Global underwriter of specialty insurance and reinsurance
Multiple
operating
platforms
-
Bermuda,
Ireland,
United
States, Lloyd's, Latin America
Strong franchise positions across multiple specialty
classes of business
Opportunistic and disciplined underwriting strategy
Strong culture of risk management
Analytical and quantitative underwriting orientation
Business mix shift towards shorter-tail lines
5 year average combined ratio (including cats) of 90.6%
Liquid balance sheet with conservative reserving track record
Shareholders
equity ~ $2.8 billion at 9/30/11
Low operating and financial leverage
S&P rating upgraded to A
from A-; AM Best rating of A
Proven track record of active capital management
YTD repurchases of $170.3 million at 9/30/11
Returned $559 million or ~18% of pro forma 1/1/10
opening
shareholders'
equity
(1)
in
2010
through
dividends
and share repurchases
Raised quarterly dividend by 17% in August 2011 to $0.14
per share
____________________
(1)
Shareholders' equity of Max Capital and Harbor Point on a combined pro forma
basis. Q3 YTD 2011 GPW
Long-Tail
42%
Short-Tail
58%
Insurance
38%
Reisurance
62% |
4
Third Quarter 2011 Results
Third quarter 2011 net operating diluted
EPS of $0.47 per share
Decrease from 2010 due to higher
catastrophe losses and lower
investment yields
P&C gross premiums written grew 19.0% to
$385.5 million
Driven by new underwriting teams and
new reinsurance business
opportunities and new business in Latin
America
Net investment income up 1.0% to $60.3
million
Combined ratio of 87.7%
Catastrophe losses of $42.1 million, net of
reinstatement premium
Diluted book value per share of $27.18 at
9/30/11, up 4.6% from 6/30/11.
P&C GPW
(19.0% increase)
Expansion into new lines and regions
Growth in Book Value
86.0%
87.7%
Combined Ratio
$25.98
$323.9m
$385.5m
Diluted Book Value
per Share
(4.6% increase)
$27.18
2010
2011
June 30, 2011
Sep 30, 2011 |
5
YTD global industry cat losses estimated over $80 billion
Market stressed by historic low returns on invested assets
Cash flow levels deteriorating
Industry reserve redundancies diminishing
Share repurchase activity slowed due to high cat losses
Property cat underwriting markets improving
Casualty lines showing flat to modest improvement
Pricing poised to positively move further with the next catalyst
Market on the Cusp of Change
Alterra is positioned to be a beneficiary of improving market conditions
globally
__________________
As of September 30, 2011 |
6
Pricing Mixed But Gradually Improving Globally
__________________
As of September 30, 2011
Results on Alterras renewal book
Excess liability rates up approximately 3%
Professional lines D&O down 20-22%, E&O flat to down 5%.
EPL down 5-10% Property rates are flat to up 10% in the US and
flat to up 15% on International business Aviation rate
declines range from 5-10% with aerospace on the high end
Insurance
Auto rates are up 1-2%
General
casualty
rates
are
flat
to
up
5%
showing
signs
of
modest
hardening
Professional liability rates are down 5-10%
Medical malpractice flat to down 2%
US property rate increases of 11-13%
International rates up 50-60% for Japan Earthquake, and over 300% in New
Zealand Reinsurance
Property treaty rates up 4-6%
Casualty treaty rates up 2-4%
Financial institution rates are down 5%
A&H rates are down 1-2%
Latin America remains competitive with rates flat to modestly higher
Lloyds
Brokerage property and casualty rates are up 2-4%
Professional liability rates are flat to up 2%
US Specialty
Marine rates are up 2-4% on average and 5-10% on accounts with cat exposure |
7
2004
Insurance
Property
2003
Insurance
Excess Liability
Professional Liability
2005
Reinsurance
Property / Property Cat
Harbor Point formed
2006
Insurance
Aviation
2008
Lloyd's Insurance
Financial Institutions
Prof. Indemnity
Lloyd's Reinsurance
Accident / Health
Property
2007
U.S. E&S Insurance
Property
Inland Marine
U.S. Casualty
Reinsurance
Multi Peril Crop
Experienced &
highly quantitative
underwriting teams
Lead underwriters average over 20 years in the
business
High percentage of employees hold
professional designations
2009
Lloyd's
Casualty (non U.S.)
A&H Insurance
U.S. Specialty
Professional Liability
Latin America Reinsurance
2002
Traditional Re
Workers' Comp
Medical Malpractice
GL / PL
Aviation
Identifying & Recruiting "Franchise Players" Has Been
Instrumental In Our Success
2010
Alterra formed
by the merger of Max
Capital and Harbor Point
2011
Lloyds
Property Direct &
Facultative
U.S. Specialty
Excess Casualty |
8
Local Knowledge
Global Reach
As of September 30, 2011
Reinsurance
Insurance
Lloyds
US Specialty Insurance
Major Classes
Agriculture
Auto
Aviation
General Casualty
Marine and Energy
Medical Malpractice
Professional Liability
Property
Surety, Credit and
Political Risk
Whole Account
Workers compensation
Aviation
Excess Liability
Professional Liability
Property
Accident & Health
Agriculture
Aviation
Casualty
Financial Institutions
Marine
Professional Lines
Property
Surety
Excess Casualty
General Liability
Marine
Professional Liability
Property
Operating
Regions
Worldwide
European Union
United States
Worldwide
United States
Offices
Bermuda
Bogotá
Buenos Aires
Dublin
London
Rio de Janeiro
Summit, NJ
Bermuda
Chicago
Dublin
Hamburg
London
New York
Sebastopol, CA
Zurich
Copenhagen
London
Rio de Janeiro
Tokyo
Zurich
Atlanta
Chicago
Dallas
New York
Richmond
San Francisco
|
9
____________________
Note:
Pro forma gross premium written (GPW) represents the combined GPW of Max Capital
and Harbor Point net of intercompany eliminations of GPW. Insurance
(18.9% of YTD 2011 P&C GPW)
Reinsurance
(49.5% of YTD 2011 P&C GPW)
Professional
Liability
Property
Excess
Liability
Aviation
General Casualty
Property
Aviation
Workers Comp.
Professional Liability
Other
Med. Mal.
Marine & Energy
Agriculture
YTD 2011 GPW: $298.5 million
= pro forma
Auto
$1,060.4
$780.6
Alterra Has a Strong Market Position in Specialty Classes
Credit/ Surety
Whole Account
YTD 2011 GPW: $780.6 million
2010 GPW: $399.6 million
2010 Pro forma GPW: $892.4 million
$892.4
$423.6
$345.2
$419.5
$489.0
$509.1
$0.0
$200.0
$400.0
$600.0
$800.0
$1,000.0
$1,200.0
2006
2007
2008
2009
2010
YTD 2011
$1,047.7
$998.3
$900.4
4%
31%
44%
21%
4%
2%
8%
3%
5%
0%
18%
39%
10%
4%
4%
4%
$396.6
$382.9
$389.4
$447.3
$399.6
$298.5
$0.0
$100.0
$200.0
$300.0
$400.0
$500.0
2006
2007
2008
2009
2010
YTD 2011 |
10
U.S. Specialty
(15.3% of YTD 2011 P&C GPW)
Alterra at Lloyds
(16.1% of YTD 2011 P&C GPW)
With an Attractive Position in the U.S. Market and Lloyds
Professional
Liability
Property
Marine
General
Liability
Property
Aviation
Fin. Institutions
Prof. Liability
Accident & Health
2010 GPW: $294.5 million
2010 GPW: $202.6 million
YTD 2011 GPW: $242.0 million
YTD 2011 GPW: $254.8 million
Intl Casualty
Surety
$8.8
$129.0
$202.6
$254.8
$0.0
$100.0
$200.0
$300.0
2008
2009
2010
YTD 2011
24%
27%
6%
44%
12%
3%
8%
20%
7%
1%
50%
$194.3
$265.9
$294.5
$242.0
$0.0
$100.0
$200.0
$300.0
$400.0
2008
2009
2010
YTD 2011 |
North
America Europe
Other
Reinsurance
Insurance
(2)
2010 GPW = $1,410.7 million
____________________
Diversified and Balanced Business Mix
Global Platform
Q3 YTD 2011
Line of Business
Q3 YTD 2011
2010 pro forma GPW = $1,794.1 million
(1)
Q3 YTD 2011 GPW = $1,578.1 million
Auto
5%
Aviation
2%
Marine & Energy
5%
Agriculture
2%
Accident & Health
2%
Other Short
-Tail
2%
Property
38%
Whole Account
2%
General Casualty
17%
Workers' Comp
2%
Medical
Malpractice
2%
Life & Annuity
0%
Professional
Liability
21%
72%
18%
10%
38%
62%
11
(1) Pro forma as if Harbor Point merger occurred on January 1, 2010. (2) Includes
Reinsurance segment, Life & Annuity reinsurance and reinsurance written through Lloyds platform . |
12
____________________
Source: Company filings, SNL Financial.
Diversified reinsurers include RE, AXS, ACGL, TRH, PRE, AWH, ENH, AHL, PTP, AGII, ALTE and ORH
for historical years. Property focused reinsurers include RNR, VR, MRH, FSR and IPCR for historical years.
Diversified Reinsurers
Property Focused Reinsurers
Diversified Platforms Generate More Consistent Margins
Alterra has performed well within its diversified peer group with less volatility
than property focused reinsurers Alterra has had one of
the lowest combined
ratios of its peer group
Median
116%
84%
82%
95%
84%
91%
115%
95%
Alterra
106%
86%
88%
92%
88%
86%
98%
92%
Median
201%
55%
61%
89%
66%
84%
138%
99%
84%
98%
85%
76%
84%
75%
77%
96%
110%
156%
103%
101%
96%
96%
124%
0%
25%
50%
75%
100%
125%
150%
2005
2006
2007
2008
2009
2010
YTD'11
Average
67%
100%
45%
45%
56%
50%
33%
140%
0%
25%
50%
75%
100%
125%
150%
252%
60%
73%
92%
75%
114%
102%
2005
2006
2007
2008
2009
2010
YTD'11
Average
142%
300%
300% |
13
Our strategy is to diversify our book of business so that property cat
is one of many components of our business
Results demonstrate that we adequately manage our risk exposure
Our reserving process has been tested by large, recent loss events
including:
2011 Australian floods, New Zealand earthquake, Japanese
earthquake and tsunami, US spring storms, Hurricane Irene
2010 Chilean earthquake, New Zealand earthquake
2008 Hurricanes Ike/Gustav
Superior Risk Management Skills
Alterras losses from catastrophe events as a % of equity are
below our peer group average |
14
Peer PMLs as a Percent of Common Equity
____________________
Source: Dowling & Partners Research
Note: RNR, MRH and PRE do not disclose their PMLs for either 1-in-100 year events or
1-in-250 year events. All data is based on RMS 11. RE and TRH utilize AIR.
(1)
1-in-100 Self-imposed limit of 25% of total capital.
(2)
1-in-100 PML and 1-in-250 for U.S. hurricane is $736 mm and $965 mm,
respectively. (3)
Single Zone 1-in-250 Tolerance is 25% of common S/E.
(4)
1-in-250 Tolerance is 25% of common S/E.
(5)
1-in-250 Tolerance is 20% of total capital. |
15
2011
YTD Catastrophe Losses
Alterras YTD Losses are Below Peer Group
__________________
Source: Company reports and SNL Financial as reported to September 30, 2011
0
200
400
600
800
1,000
1,200
1,400
1,600
FSR
PRE
PTP
MRH
TRH
AXS
RNR
RE
AHL
ENH
VR
AGII
ACGL
AWH
ALTE
Losses
Percentage of December 31, 2010 Capital and Surplus
0%
5%
10%
15%
20%
25%
30%
35%
40% |
16
2010
Chilean Earthquake / Windstorm Xynthia/
September New Zealand Earthquake
Alterras
2010 Losses Are Below Peer Group
0%
2%
4%
6%
8%
10%
0
50
100
150
200
250
300
350
400
450
FSR
PTP (1)
VR (2)
RNR (3)
MRH
RE
PRE
AHL
AXS (2)
TRH (2)
AWH
(2)(4)
ENH
AGII
(1)(5)
ACGL(1)
ALTE (6)
Ultimate Net Losses Reported
Percentage of December 31, 2009 Capital and Surplus
Source: Company filings and press releases; losses are generally disclosed net of tax
and net of reinstatement premiums. (1)
Q2 net losses reflect Q1 estimates plus reported development, if any.
(2)
Q2 net losses reflect only losses from the Chilean earthquake. Initial losses
include the Chilean earthquake and Windstorm Xynthia. (3)
Initial loss estimate reflects 50% to 90% of Reuters consensus net operating earnings
prior to the earthquake, based on disclosure that net income would remain positive for the quarter.
(4)
Initial estimates based on Chile and Xynthia, ultimate losses include the Chilean,
Haitian, and Baja earthquakes, Xynthia and the Australian hailstorms. Based on international catastrophe losses being two-thirds of total catastrophe losses
as disclosed in the earnings conference call.
(5)
Initial estimate is as of the first quarter conference call. Both initial and
revised estimates reflect only the Chilean earthquake.
(6)
Pro forma; includes losses from Harbor Point and Max Capital prior to the merger.
Expressed as a percentage of combined 12/31/09 equity prior to the special dividend. |
17
2008
Hurricanes Ike / Gustav
____________________
Source: Company filings, as of 12/31/08. Losses are generally disclosed net of reinstatement
premiums. (1)
Equity includes preferred, which subsequently converted to common.
(2)
Results reflect Ike only.
(3)
Equity includes preferred, which subsequently converted to common.
(4)
TRH does not disclose specific losses but did lose "$169.7 million principally relating to
Hurricane Ike." 0%
2%
4%
6%
8%
10%
12%
14%
0
50
100
150
200
250
300
350
400
450
VR
FSR
RNR
MRH
IPCR(1)PTP(1)
ACGL
AXS
PRE(2)
HP(3)
AHL
ENH
ORH
TRH(4)
AWH
RE
MXGL
Ultimate Net Losses Reported
Percentage of June 30, 2008 Capital and Surplus |
18
Target PML of 20% of starting capital in 1 in 250 year event
Adjust position as market pricing makes risk/reward attractive
Use RMS with all switches on
and gross-up factors on standard model
Incorporate AIR, market share, industry and client historical loss data
Capture detailed location data and put a premium on data quality
Historically our losses for events have been close to expected
ranges
PML and aggregate usage is incorporated into our pricing models
Key In-force PMLs as of September 1, 2011
Florida wind
1 in 100 year event -
$257 million net loss
California earthquake
1 in 250 year event -
$405 million net loss
Europe wind
1 in 100 year event -
$160 million net loss
Cat Aggregate & PML Management |
19
Track record of opportunistically expanding at inflection points
in the cycle
Flexibility to adjust cat aggregates as pricing improves
Increasing
our
risk
appetite
by
5%
would
equate
to
approximately
$150
million
of
PML
The 20% PML target is an internal target that can be adjusted based on market
opportunity
Multiple tools to optimize performance in a harder market include:
Ability to expand underwriting capacity through New Point IV
Retain more and cede less business to reinsurers
Low financial and operating leverage provides flexibility
Positioned To Capitalize on Higher Reinsurance Rates
Alterra Expects To Benefit As Harder Market Conditions Emerge
|
20
Reserves for Loss and Loss Expenses
____________________
Note: As of 9/30/2011 and 12/31/2010; includes the results of Harbor Point from
May 12, 2010, the closing date of the merger. ($ in millions)
IBNR
Case
33%
26%
32%
38%
28%
36%
38%
67%
74%
70%
68%
62%
72%
64%
62%
$1,350
$1,335
$2,169
$2,041
$285
$232
$401
$297
$0
$500
$1,000
$1,500
$2,000
$2,500
YTD 2011
2010
YTD 2011
2010
YTD 2011
2010
YTD 2011
2010
30%
Insurance
Reinsurance
Alterra
at Lloyd's
U.S. Specialty |
21
Favorable Reserve
Development
$5.9
$45.1
$90.8
$77.2
$105.5
$110.4
Development as a
% of Net Reserves
prior to
development
0.3%
2.5%
4.1%
3.4%
3.4%
3.4%
Reserve Development History
Net Loss Reserves
($ in millions)
____________________
Note: Reserve development and net reserves prior to May 12, 2010 are for Max Capital
only. Reserve development excludes changes in reserves resulting from changes in
premium estimates on prior yearscontracts.
$1,840
$1,796
$2,128
$2,213
$2,985
$3,159
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2006
2007
2008
2009
2010
9/30/2011 |
22
High Quality, Liquid Investment Portfolio
As of September 30, 2011
Alterra maintains a high quality, liquid portfolio
96.1% of portfolio in fixed income/cash, which consists of highly rated
securities
Assets are generally matched to liabilities
Cycle
management
extends
to
investments
H1
posture
was
defensive
Cash balance $870.0 million or 10.9% of portfolio
Average fixed income duration of approximately 4.2 years, including cash
59.3% of the cash and fixed maturities portfolio is held in cash,
government / agency-backed securities and AAA
securities
68.8% of fixed income portfolio rated AA
or better
Hedge fund investments are marked-to-market
Minimal exposure to selected asset classes
CMBS
of
$358.7
million
(4.5%
of
portfolio)
average
rating
of
AA+/Aa1
ABS of $241.6 million (3.0% of portfolio)
RMBS
of
$1,222.5
million
(15.3%
of
portfolio)
91.1%
agency-backed
No CDOs, CLOs, SIVs or other highly structured securities
Less than $8.0 million of OTTI losses over the last ten
quarters
Carrying Value $8.0 billion
September 30, 2011
Cash
11%
Other
Investments
4%
Fixed Income
85% |
23
Foreign Sovereign Exposure
As of September 30, 2011
Foreign sovereign debt represents $830.1
million, or 10.2% of the $8.1 billion
investment portfolio, by fair value
European Exposure:
Total European government holdings represent
$768.1 million, or 9.4% of the investment
portfolio
No exposure to Greece, Portugal, Italy or Spain
European financial institutions represent
$467.4 million, or 5.7% of the $8.1 billion
investment portfolio
Our top two holdings, which total $118.2 million,
are with government-backed financial
institutions.
Belgium
3%
Netherlands
18%
France
34%
Germany
31%
UK
2%
Other
6%
Ireland
3%
Canada
3%
Geographic and Ratings Split of Foreign
Sovereign Debt
Fair Value $830.1 million
BBB -
3%
AA+
5%
Other
2%
AAA
90% |
24
____________________
Note:
Primary price / diluted book value multiple as of 11/11/11.
Well Positioned to Build Shareholder Value
Franchise positions in attractive specialty markets
Established operating platforms provide global access to business
Diversified
business
portfolio
across
casualty
and
property
lines
Opportunistic
approach
nimble
and
responsive
to
market
trends
High-quality, liquid investment portfolio
Invested asset leverage intended to drive more consistent returns
Balance sheet strength with low leverage / financial flexibility
Attractive entry point
price / diluted book value of 0.84x |
25
Appendices |
26
September 30,
December 31,
2011
2010
Cash & Fixed Maturities
7,688
$
7,483
$
Other Investments
312
378
Premium Receivables
778
589
Losses Recoverable
1,079
956
Other Assets
615
511
Total Assets
10,472
$
9,917
$
Property & Casualty Losses
4,205
$
3,906
$
Life & Annuity Benefits
1,230
1,276
Deposit
Liabilities 147
148
Funds Withheld
125
121
Unearned Premium
1,149
905
Senior Notes
440
440
Other Liabilities
331
203
Total Liabilites
7,627
$
6,999
$
Shareholders' Equity
2,845
2,918
10,472
$
9,917
$
Strong Balance Sheet
($ in millions)
(1)
Results for the year ended December 31, 2010 include results from Harbor Point
following the close of the merger on May 12, 2010. |
27
YTD Results Comparison
($ in millions)
Nine months ended
(1)
Pro forma nine months ended
(2)
Sept. 30,
Sept. 30,
Sept. 30,
2011
2010
2010
Gross Premiums Written
1,578
$
1,095
$
1,479
$
Net Premiums Earned
1,076
830
1,049
Net Investment Income
178
161
186
Net Realized and Unrealized (Losses) Gains on Investments
(33)
7
15
Other Than Temporary Impairment Charges
(2)
(1)
(1)
Other Income
3
2
2
Total Revenues
1,222
999
1,251
Total Losses, Expenses & Taxes
1,188
776
1,038
Net Income
34
$
223
$
213
$
Net Operating Income
65
$
175
$
Property & Casualty Underwriting
Loss Ratio
66.5%
57.5%
Expense Ratio
32.0%
28.5%
Combined Ratio
98.4%
86.1%
(1)
Results for the nine months ended September 30, 2010 do not include results from Harbor Point prior to
the merger on May 12, 2010.
(2)
Pro forma information is provided for informational purposes only to present a summary of the combined
results of operations assuming the amalgamation with Harbor Point had occurred on January 1,
2010. The pro forma information assumes the elimination of intercompany transactions and the amortization of certain acquisition accounting fair value
adjustments. The pro forma information does not necessarily represent results that would have occurred
if the amalgamation had taken place on January 1, 2010, nor is it necessarily indicative of the
future results.
|
28
Nine months ended September 30, 2011
($ in millions)
Totals in table may not add due to rounding.
(1)
Property and Casualty only.
Diversified Operating Platform
Life &
Property & Casualty
Annuity
Corporate
Consolidated
Alterra at
Insurance
Reinsurance
U.S. Specialty
Lloyd's
Total
Reinsurance
Gross premiums written
$298.5
$780.6
$242.0
$254.8
$1,575.9
$2.2
-
$
$1,578.1
Reinsurance premiums ceded
(142.4)
(81.4)
(86.0)
(54.8)
(364.7)
(0.2)
-
(364.9)
Net premiums written
$156.1
$699.1
$156.0
$200.0
$1,211.2
$2.0
-
$
$1,213.2
Earned premiums
297.6
676.9
222.4
186.1
1,383.0
2.2
-
1,385.2
Earned premiums ceded
(140.6)
(51.0)
(71.5)
(45.9)
(309.1)
(0.2)
-
(309.3)
Net premiums earned
$157.0
$625.9
$150.9
$140.2
$1,073.9
$2.0
-
$
$1,075.9
Net losses and loss expenses
($87.3)
($426.2)
($97.7)
($102.8)
($714.1)
-
$
-
$
($714.1)
Claims and policy benefits
-
-
-
-
-
(44.8)
-
(44.8)
Acquisition costs
0.8
(137.8)
(27.2)
(32.0)
(196.3)
(0.4)
-
(196.7)
General and administrative expenses
(27.5)
(63.9)
(26.8)
(28.5)
(146.7)
(0.6)
-
(147.2)
Other income
1.0
1.3
-
0.4
2.7
-
-
2.7
Underwriting income (loss)
$43.9
($0.7)
($0.8)
($22.8)
$19.6
n/a
-
$
n/a
Net investment income
$37.0
$140.7
$177.8
Net realized and unrealized gains (losses) on investments
(4.9)
(27.7)
(32.6)
Net impairment losses recognized in earnings
(2.2)
(2.2)
Corporate other income
0.7
0.7
Interest expense
(30.4)
(30.4)
Net foreign exchange gains
(2.1)
(2.1)
Corporate general and administrative expenses
(55.2)
(55.2)
Income (loss) before taxes
($11.8)
$23.9
$31.7
Loss ratio
55.6%
68.1%
64.8%
73.3%
66.5%
Acquisition cost ratio
(0.5%)
22.0%
18.1%
22.9%
18.3%
General and administrative expense ratio
17.6%
10.2%
17.7%
20.3%
13.7%
Combined ratio
(1)
72.7%
100.3%
100.5%
116.5%
98.4% |