Max Capital Group Q3 Net up 250% to $66.8 Million
The Bermuda-based Max Capital Group Ltd. reported net income for the three months ended September 30, 2007, of $66.8 million, or $1.05 per diluted share, compared to net income of $26.5 million, or $0.42 per diluted share, for the three months ended September 30, 2006.
Net operating income, which excludes after-tax net realized gains and losses on sales of fixed maturities, for the third quarter was $68.4 million, or $1.08 per diluted share, compared with net operating income of $26.8 million, or $0.42 per diluted share, for the three months ended September 30, 2006. For the nine months ended September 30, 2007, the Company had net income of $240.9 million, or $3.77 per diluted share, compared to $121.5 million, or $1.91 per diluted share, for the nine months ended September 30, 2006. For the nine months ended September 30, 2007, the Company had net operating income of $243.9 million, or $3.81 per diluted share, compared to $128.8 million, or $2.03 per diluted share, for the nine months ended September 30, 2006.
Chairman and CEO W. Marston Becker commented: “Max continues an excellent year with third-quarter results reflecting significant underwriting income and continued solid investment performance. Our internal review of loss reserves during the third quarter permitted us to release $12.4 million of prior-period reserves. Additionally, we entered an agreement to settle a large block of prior-period reserves on one of our structured product contracts for significantly less than originally estimated. We are very pleased with this quarter’s performance and the depth of earnings opportunities it represents. We look forward to carrying this earnings momentum into the year-end as we continue to build the Company.”
The earnings bulletin also noted:
— Gross premiums written for the three months ended September 30, 2007, were $223.0 million, of which $160.8 million came from property and casualty underwriting and $62.2 million from life and annuity underwriting, compared to $177.9 million, of which $177.3 million came from property and casualty underwriting and $0.6 million from life and annuity underwriting, for the three months ended September 30, 2006.
— Net premiums earned for the three months ended September 30, 2007, were $177.6 million compared to $147.1 million for the same period in 2006.
— Gross premiums written for the nine months ended September 30, 2007, were $678.1 million compared to $717.7 million for the first nine months of 2006.
— Property and casualty reinsurance, property and casualty insurance, excess and surplus lines insurance, and life and annuity reinsurance accounted for 45.5 percent, 41.9 percent, 3.2 percent and 9.4 percent, respectively, of gross premiums written for the first nine months of 2007, versus 55.4 percent, 38.5 percent, 0.0 percent and 6.1 percent, respectively, for the same period in 2006.
— Net premiums earned for the first nine months of 2007 decreased 10.1 percent to $455.0 million compared to $506.0 million for the same period in 2006.
The announcement explained that the “decline in net premiums earned in the nine months ended September 30, 2007, versus the same period in 2006 principally reflects the lower volume of gross premium written and the increase in the Company’s use of reinsurance in order to manage its net retained exposure.”
Further information may be obtained on the Group’s web site at: www.maxcapgroup.com
Source: Max Capital
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