February 2004/4

Bermuda based Montpelier Re reported net income of $99.9mn for the final quarter, which helped the reinsurer unveil full year net earnings of $407.1mn for 2003.

A fourth quarter deficit was inevitable for the Bermudian giant XL Capital after a previously announced pre-tax charge of $694mn, and the operating loss of $2.54 per share was roughly in line with analysts’ expectations (First Call consensus $2.51).

In its first full year after being carved from US insurance giant St Paul, Platinum Underwriters unveiled net earnings of $144.8mn after a strong fourth quarter contributed $49.8mn.

Struggling insurance group CNA provided a fillip to its de facto owners, the Loews Corporation, after reporting its first below 100 percent combined ratio for the fourth quarter – the first time for more than four years.

The world’s most valuable insurer AIG has posted fourth quarter profits of $2.71bn, or $1.03 per share, with higher general insurance premiums and revenues contributing to the bottom line.

Further rate increases and winning new businesses enabled reinsurance giant Swiss Re to grow premiums by 7 percent at the recent 1 January renewals.

Specialty insurance holding company WR Berkley announced an increase in its fourth-quarter profits on the back of higher premiums.

The opaque but growing trend of brokers charging payments from insurers to place business with them has been attacked by an influential US think tank as “potentially damaging”.