Reinsurer's net profit down but third quarter net premiums up
US-based reinsurer Transatlantic Group made a net profit of $260.4m for the first nine months of 2010, down 23.6% on the $340.8m profit it made in the same period last year.
Net premium written for the period decreased 1.5% to $2.98bn from $3.02bn, though third-quarter net premium income rose 3.5% to $1bn from $972.6m.
The nine-month combined ratio rose to 99.3% from 93.5%, while third quarter combined ratio increased by a smaller margin to 94% from 91.9%.
Third-quarter net income and net operating income include $22 million of pre-tax net catastrophe costs, $19 million of which related to the earthquake in New Zealand.
Robert Orlich, president and chief executive officer said in a statement the company results are strong but added: “Market conditions remain challenging and we continue to emphasise strict underwriting discipline.”