Sydney storms batter Allied World result
Storms in NSW in April and May cost Swiss (re)insurer Allied World $US25 million ($33.87 million), the company has announced, while reporting a profit slide for the June quarter.
Net profit was $US9.46 million ($12.81 million), down from $US151.86 million ($205.76 million) in the corresponding period last year.
Allied World blames the slump on catastrophe, weather and fire-related losses, changes in reserves and increased mark-to-market losses on investments.
Gross written premium grew 9% to $US825.97 million ($1.12 billion) on strong results from the US and an increase in Asian earnings following the acquisition of Royal & Sun Alliance’s Singapore and Hong Kong operations.
The combined operating ratio blew out to 99.2% from 90.3%. Allied World went into loss on its insurance operations and the reinsurance division reported a $US25.61 million ($34.7 million) profit, down 28%.
Meanwhile, Michael Garrison has been appointed as Senior VP Asia-Pacific for Allied World’s global markets division.
He will be based in Singapore, with responsibility for the strategic leadership of insurance operations there and in Australia, Hong Kong and Malaysia.
Allied World Global Markets President Julian James says Mr Garrison will lead expansion in the region following the purchase of Royal & Sun Alliance Insurance’s Hong Kong and Singapore operations earlier this year.
Mr Garrison has more than 20 years’ experience in insurance, including in Hong Kong, New York, London, Bermuda and Paris. He was mostly recently senior VP and chief underwriting officer at Starr Companies.
He replaces Bill Cotter, who is transferring to Allied World North America.