Swiss reinsurer Allied World Assurance Company Holdings AG, with Farmington operations, set a second-quarter operating profit that blew past analysts’ expectations for the fifth straight quarter on higher earned premiums, Reuters reports.
The Zug, Switzerland, reinsurer’s second-quarter net income rose to $96.4 million, or $2.59 per share, from $93.8 million, or $2.36 per share, a year earlier.
Operating income, a key metric of profitability for insurers and reinsurers as it excludes certain investment gains and losses, doubled to $2.35 per share.
Analysts on average expected the company, which is valued at about $2.76 billion, to earn $1.76 per share on an operating basis, according to Thomson Reuters I/B/E/S.
Net premiums earned for the quarter jumped 21 percent to $429.7 million.
Net investment income fell to $42.5 million from $52.4 million, a year earlier.
Combined ratio, which is the percentage of premiums an insurer has to pay out in claims and expenses, fell to 85.1 percent from 97.4 percent. A lower combined ratio is better, as a figure over 100 indicates that underwriting was unprofitable.
