Swiss insurer Allied World Assurance Co. Holdings AG, with operations in Farmington, posted lower first-quarter earnings stemming from losses sustained from the recent string of global natural catastrophes.
Allied World, based in Zug, Switzerland, earned a net $8.6 million, or 21 cents a share, in the three months ended March 31, down from $133.7 million, or $2.52 a share, earned the same period last year.
The steep drop in net income stemmed from an operating loss of $41.3 million, or $1.02 a share, sustained in the first quarter from insured claims tied to damaging floods in Australia, the New Zealand earthquake, and the devastasting quake and tsunami in Japan.
Allied World estimates its New Zealand insured losses at $40 million and its Japan loss at $75 million.
A year ago, Allied World’s operating income was $61.3 million, or $1.16 a share.
“We are pleased and fortunate to have generated net income in the quarter,” Allied World President and CEO Scott Carmilani said recently.
He said the insurer’s prudent risk appetite and investment strategy enabled it to manage its exposure and losses in “one of the costliest first quarters the industry has faced.”
