Allied World Reports Strong Full Year 2012 Results With 15.6% Growth in Diluted Book Value per Share
Gross Premiums Written up 20.1% for Full Year 2012
ZUG, Switzerland, Feb. 13, 2013 /PRNewswire/ -- Allied World Assurance Company Holdings, AG (NYSE: AWH) today reported a net loss of $41.1 million, or $1.17 per diluted share, for the fourth quarter of 2012 compared to net income of $183.1 million, or $4.63 per diluted share, for the fourth quarter of 2011. Net income for the year ended December 31, 2012 was $493.0 million, or $13.30 per diluted share, compared to net income of $274.5 million, or $6.92 per diluted share, for the year ended December 31, 2011.
The company reported an operating loss of $55.4 million, or $1.58 per diluted share, for the fourth quarter of 2012 compared to operating income of $94.7 million, or $2.40 per diluted share, for the fourth quarter of 2011. Operating income for the year ended December 31, 2012 was $202.7 million, or $5.47 per diluted share, compared to operating income of $183.7 million, or $4.63 per diluted share, for the year ended December 31, 2011.
President and Chief Executive Officer Scott Carmilani commented, "Allied World had a strong year in 2012. While Superstorm Sandy tempered our fourth quarter underwriting results, we still generated $493 million of net income for the full year, continuing to build value for our shareholders. Our diluted book value per share grew by over 15% in 2012, to $92.59. The company's top line production grew by 20% to $2.3 billion in gross premiums written for the year, and we were able to achieve targeted growth in all three of our business segments."
Mr. Carmilani added, "Our company continues to capitalize on our various book value drivers including our expanded breadth and diversity of underwriting platforms, strong investment acumen, responsible reserving and capital management flexibility. I believe these strengths have Allied World well positioned as we move into 2013 and beyond."
Underwriting Results
Gross premiums written were $497.1 million in the fourth quarter of 2012, a 19.3% increase compared to $416.5 million in the fourth quarter of 2011. For the year ended December 31, 2012, gross premiums written totaled $2,329.3 million, a 20.1% increase compared to $1,939.5 million for the year ended December 31, 2011. Net premiums written were $362.6 million in the fourth quarter of 2012, an 18.2% increase compared to $306.8 million in the fourth quarter of 2011. For the year ended December 31, 2012, net premiums written totaled $1,837.8 million, a 19.8% increase compared to $1,533.8 million for the year ended December 31, 2011.
Net premiums earned in the fourth quarter of 2012 were $476.2 million, a 20.4% increase compared to $395.5 million in the fourth quarter of 2011. For the year ended December 31, 2012, net premiums earned totaled $1,748.9 million, a 20.0% increase compared to $1,457.0 million for the year ended December 31, 2011.
The combined ratio was 116.5% in the fourth quarter of 2012 compared to 83.5% in the fourth quarter of 2011. The loss and loss expense ratio was 87.1% in the fourth quarter of 2012 compared to 53.9% in the fourth quarter of 2011. During the fourth quarter of 2012, the company recorded net favorable reserve development on prior loss years of $32.8 million. This favorable reserve development resulted in a benefit of 6.9 percentage points to the company's loss and loss expense ratio for the quarter. This compares to the fourth quarter of 2011, when the company recorded net favorable reserve development on prior loss years of $92.4 million, a benefit of 23.4 percentage points to the company's loss and loss expense ratio for that quarter. Absent these adjustments, the loss and loss expense ratio for the fourth quarter of 2012 was 94.0% compared to 77.3% for the fourth quarter of 2011. The fourth quarter 2012 loss and loss expense ratio was impacted by $175.7 million, or 36.9 percentage points, from net losses related to Superstorm Sandy (before consideration of estimated reinstatement premiums). This compares to the fourth quarter of 2011 loss and loss expense ratio, which was impacted by $59.1 million of net losses, or 14.9 percentage points, from 2011 global catastrophe activity.
For the year ended December 31, 2012, the combined ratio was 94.5% compared to 95.9% for the year ended December 31, 2011. The loss and loss expense ratio was 65.1% for the year ended December 31, 2012 compared to 65.8% for the year ended December 31, 2011. For the year ended December 31, 2012, the company recorded net favorable reserve development on prior loss years of $170.3 million, a benefit of 9.7 percentage points to the company's loss and loss expense ratio. For the year ended December 31, 2011, the company recorded net favorable reserve development on prior loss years of $253.5 million, a benefit of 17.6 percentage points to the company's loss and loss expense ratio. Absent prior year reserve adjustments, the loss and loss expense ratio for the year ended December 31, 2012 was 74.8% compared to 83.4% for 2011. The loss and loss expense ratio for the year ended December 31, 2012 was impacted by $179.6 million, or 10.3 percentage points, from Superstorm Sandy and Hurricane Isaac and by $36.0 million, or 2.1 percentage points, of crop reinsurance losses. The loss and loss expense ratio for the year ended December 31, 2011 was impacted $292.2 million of net losses, or 20.2 percentage points, from 2011 global catastrophe activity.
The company's expense ratio was 29.4% for the fourth quarter of 2012 compared to 29.6% for the fourth quarter of 2011. For the year ended December 31, 2012, the company's expense ratio was 29.4% compared to 30.1% for the year ended December 31, 2011.
Investment Results
The total return on the company's investment portfolio for the fourth quarter of 2012 was 0.6% compared to 0.9% for the fourth quarter of 2011. For the year ended December 31, 2012, the total return on the company's investment portfolio was 5.5% compared to 2.0% for the year ended December 31, 2011. See the table below for the components of our investment returns:
Quarter Ended |
Year Ended |
|||||||
December 31, 2012 |
December 31, 2011 |
December 31, 2012 |
December 31, 2011 |
|||||
(Expressed in millions of U.S. Dollars) |
(Expressed in millions of U.S. Dollars) |
|||||||
Net investment income |
$ 38.4 |
$ 45.5 |
$ 167.1 |
$ 195.9 |
||||
Net realized investment gains |
14.4 |
31.6 |
306.4 |
10.1 |
||||
Change in unrealized gains |
(2.2) |
(3.3) |
(17.5) |
(45.7) |
||||
Net investment income, realized gains and unrealized gains |
$ 50.6 |
$ 73.8 |
$ 456.0 |
$ 160.3 |
||||
Average invested assets |
$ 8,518.1 |
$ 8,062.6 |
$ 8,272.6 |
$ 7,902.6 |
||||
Financial statement portfolio return |
0.6% |
0.9% |
5.5% |
2.0% |
||||
Note: investment income, net realized gains / losses and change in unrealized gains / losses are disclosed on a pre-tax basis. |
In the fourth quarter of 2012, Allied World Financial Services, Inc. entered into four strategic partnerships with Cunningham Lindsey, MatlinPatterson, Aeolus Capital Management and Crescent Capital Group. The consideration paid for our ownership stakes in these partnerships is included in "other invested assets."
Shareholders' Equity
As of December 30, 2012, shareholders' equity was $3,326.3 million, compared to $3,149.0 million as of December 31, 2011.
As of December 31, 2012, diluted book value per share was $92.59, an increase of 15.6% compared to $80.11 as of December 31, 2011.
Share Repurchase Program
During the fourth quarter of 2012, the company repurchased 713,874 of its common shares through its share repurchase program in the open market at an average price of $79.70 per share for an aggregate cost of $56.9 million. For the year ended December 31, 2012, the company repurchased 3,655,959 of its common shares through its share repurchase program in the open market at an average price of $72.20 per share for an aggregate cost of $263.9 million.
Supplementary Information
Allied World will be providing a Financial Supplement relating to fourth quarter 2012 and an Investment Supplement as of December 31, 2012. This information will be available at the "Investor Relations" section of the company's website at www.awac.com.
Conference Call
Scott Carmilani, President and Chief Executive Officer, and other members of the company's management will host a conference call on Thursday, February 14, 2013 at 9:00 am (Eastern Time) to discuss Allied World's fourth quarter and year end 2012 financial results. The public may access a live webcast of the conference call at the "Investor Relations" section of the company's website at www.awac.com. In addition, the conference call can be accessed by dialing (888) 317-6003 (U.S. and Canada callers) (412) 317-6061 (international callers) and entering the passcode 8250430 approximately ten minutes prior to the call.
Following the conclusion of the presentation, a replay of the call will be available through Thursday, February 28, 2013 by dialing (877) 344-7529 (U.S. and Canada callers) or (412) 317-0088 (international callers) and entering the passcode 10022422. In addition, the webcast will remain available online through Thursday, February 28, 2013 at www.awac.com.
Non-GAAP Financial Measures
In presenting the company's results, management has included and discussed in this press release certain non-generally accepted accounting principles ("non-GAAP") financial measures within the meaning of Regulation G as promulgated by the U.S. Securities and Exchange Commission. Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain the company's results of operations in a manner that allows for a more complete understanding of the underlying trends in the company's business. However, these measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles ("U.S. GAAP").
"Operating income" is an internal performance measure used in the management of the company's operations and represents after-tax operational results excluding, as applicable, net realized investment gains or losses, net impairment charges recognized in earnings, net foreign exchange gain or loss, and other non-recurring items. The company excludes net realized investment gains or losses, net impairment charges recognized in earnings, net foreign exchange gain or loss, and other non-recurring items from the calculation of operating income because these amounts are heavily influenced by and fluctuate in part according to the availability of market opportunities and other factors. The company has excluded from operating income the termination fee received from Transatlantic Holdings, Inc. in 2011 as this a non-recurring item. In addition to presenting net income determined in accordance with U.S. GAAP, the company believes that showing operating income enables investors, analysts, rating agencies and other users of the company's financial information to more easily analyze our results of operations and underlying business performance. Operating income should not be viewed as a substitute for U.S. GAAP net income.
The company has included "diluted book value per share" because it takes into account the effect of dilutive securities; therefore, the company believes it is an important measure of calculating shareholder returns.
"Annualized net income return on average shareholders' equity" ("ROAE") is calculated using average shareholders' equity, excluding the average after tax unrealized gains (or losses) on investments. Unrealized gains (losses) on investments are primarily the result of interest rate and credit spread movements and the resultant impact on fixed income securities. Such gains (losses) are not related to management actions or operational performance, nor are they likely to be realized. Therefore, the company believes that excluding these unrealized gains (losses) provides a more consistent and useful measurement of operating performance, which supplements U.S. GAAP information. In calculating ROAE, the net income (loss) available to shareholders for the period is multiplied by the number of such periods in a calendar year in order to arrive at annualized net income (loss) available to shareholders. The company presents ROAE as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information.
"Annualized operating return on average shareholders' equity" is calculated using operating income (as defined above and annualized in the manner described for net income (loss) available to shareholders under ROAE above) and average shareholders' equity, excluding the average after tax unrealized gains (losses) on investments. Unrealized gains (losses) are excluded from equity for the reasons outlined in the annualized net income return on average shareholders' equity explanation above.
Reconciliations of these financial measures to their most directly comparable U.S. GAAP measures are included in the attached tables.
About Allied World Assurance Company
Allied World Assurance Company Holdings, AG, through its subsidiaries, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions, offering superior client service through a global network of offices and branches. All of Allied World's rated insurance and reinsurance subsidiaries are rated A by A.M. Best Company, A by Standard & Poor's, and A2 by Moody's, and our Lloyd's Syndicate 2232 is rated A+ by Standard & Poor's and Fitch. Please visit www.awac.com for further information on Allied World.
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this press release reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, our forward-looking statements could be affected by pricing and policy term trends; increased competition; the impact of acts of terrorism and acts of war; greater frequency or severity of unpredictable catastrophic events; negative rating agency actions; the adequacy of our loss reserves; the company or its subsidiaries becoming subject to significant income taxes in the United States or elsewhere; changes in regulations or tax laws; changes in the availability, cost or quality of reinsurance or retrocessional coverage; adverse general economic conditions; and judicial, legislative, political and other governmental developments, as well as management's response to these factors, and other factors identified in our filings with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We are under no obligation (and expressly disclaim any such obligation) to update or revise any forward-looking statement that may be made from time to time, whether as a result of new information, future developments or otherwise.
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG |
|||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||
(Expressed in thousands of United States dollars, except share and per share amounts) |
|||||||||||||
Quarter Ended December 31, |
Year Ended December 31, |
||||||||||||
2012 |
2011 |
2012 |
2011 |
||||||||||
Revenues: |
|||||||||||||
Gross premiums written |
$ |
497,052 |
$ |
416,537 |
$ |
2,329,271 |
$ |
1,939,521 |
|||||
Premiums ceded |
(134,429) |
(109,705) |
(491,448) |
(405,755) |
|||||||||
Net premiums written |
362,623 |
306,832 |
1,837,823 |
1,533,766 |
|||||||||
Change in unearned premiums |
113,621 |
88,637 |
(88,925) |
(76,774) |
|||||||||
Net premiums earned |
476,244 |
395,469 |
1,748,898 |
1,456,992 |
|||||||||
Net investment income |
38,360 |
45,489 |
167,141 |
195,948 |
|||||||||
Net realized investment gains |
14,379 |
31,632 |
306,436 |
10,077 |
|||||||||
Other income - termination fee |
— |
66,744 |
— |
101,744 |
|||||||||
Total revenue |
528,983 |
539,334 |
2,222,475 |
1,764,761 |
|||||||||
Expenses: |
|||||||||||||
Net losses and loss expenses |
414,734 |
213,345 |
1,139,264 |
959,156 |
|||||||||
Acquisition costs |
55,910 |
46,562 |
205,722 |
167,295 |
|||||||||
General and administrative expenses |
84,404 |
70,492 |
307,321 |
271,656 |
|||||||||
Amortization of intangible assets |
633 |
678 |
2,533 |
2,978 |
|||||||||
Interest expense |
13,826 |
13,754 |
55,405 |
54,989 |
|||||||||
Foreign exchange loss (gain) |
860 |
(549) |
783 |
3,159 |
|||||||||
Total expenses |
570,367 |
344,282 |
1,711,028 |
1,459,233 |
|||||||||
(Loss) income before income taxes |
(41,384) |
195,052 |
511,447 |
305,528 |
|||||||||
Income tax (benefit) expense |
(237) |
11,952 |
18,440 |
30,980 |
|||||||||
NET (LOSS) INCOME |
$ |
(41,147) |
$ |
183,100 |
$ |
493,007 |
$ |
274,548 |
|||||
PER SHARE DATA: |
|||||||||||||
Basic (loss) earnings per share |
$ |
(1.17) |
$ |
4.80 |
$ |
13.67 |
$ |
7.21 |
|||||
Diluted (loss) earnings per share |
$ |
(1.17) |
$ |
4.63 |
$ |
13.30 |
$ |
6.92 |
|||||
Weighted average common shares outstanding |
35,097,043 |
38,138,558 |
36,057,145 |
38,093,351 |
|||||||||
Weighted average common shares and common share equivalents outstanding |
35,097,043 |
39,524,273 |
37,069,885 |
39,667,905 |
|||||||||
Dividends paid per share |
$ |
0.375 |
$ |
0.375 |
$ |
1.875 |
$ |
0.750 |
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG |
||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(Expressed in thousands of United States dollars, except share and per share amounts) |
||||||
As of |
As of |
|||||
December 31, |
December 31, |
|||||
ASSETS: |
2012 |
2011 |
||||
Fixed maturity investments trading, at fair value |
$ |
6,626,454 |
$ |
6,254,686 |
||
Fixed maturity investments available for sale, at fair value |
— |
244,016 |
||||
Equity securities trading, at fair value |
523,949 |
367,483 |
||||
Other invested assets |
783,534 |
540,409 |
||||
Total investments |
7,933,937 |
7,406,594 |
||||
Cash and cash equivalents |
865,364 |
716,604 |
||||
Insurance balances receivable |
846,900 |
652,158 |
||||
Prepaid reinsurance |
277,406 |
226,721 |
||||
Reinsurance recoverable |
1,141,110 |
1,002,919 |
||||
Accrued investment income |
29,135 |
38,263 |
||||
Net deferred acquisition costs |
108,010 |
100,334 |
||||
Goodwill |
268,376 |
268,376 |
||||
Intangible assets |
51,365 |
53,898 |
||||
Balances receivable on sale of investments |
418,879 |
580,443 |
||||
Net deferred tax assets |
25,580 |
22,646 |
||||
Other assets |
63,884 |
53,202 |
||||
Total assets |
$ |
12,029,946 |
$ |
11,122,158 |
||
LIABILITIES: |
||||||
Reserve for losses and loss expenses |
$ |
5,645,549 |
$ |
5,225,143 |
||
Unearned premiums |
1,218,021 |
1,078,412 |
||||
Reinsurance balances payable |
136,264 |
124,539 |
||||
Balances due on purchases of investments |
759,934 |
616,728 |
||||
Senior notes |
798,215 |
797,949 |
||||
Dividends payable |
— |
14,302 |
||||
Accounts payable and accrued liabilities |
145,628 |
116,063 |
||||
Total liabilities |
8,703,611 |
7,973,136 |
||||
SHAREHOLDERS' EQUITY: |
||||||
Common shares: 2012: par value CHF 12.64 per share and 2011: par value CHF 14.03 per share (2012: 36,369,868; 2011: 40,003,642 shares issued and 2012: 34,797,781; 2011: 37,742,131 shares outstanding) |
454,980 |
557,153 |
||||
Additional paid-in capital |
— |
78,225 |
||||
Treasury shares, at cost (2012: 1,572,087; 2011: 2,261,511) |
(113,818) |
(136,590) |
||||
Retained earnings |
2,985,173 |
2,635,750 |
||||
Accumulated other comprehensive income |
— |
14,484 |
||||
Total shareholders' equity |
3,326,335 |
3,149,022 |
||||
Total liabilities and shareholders' equity |
$ |
12,029,946 |
$ |
11,122,158 |
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG |
|||||||||||||
UNAUDITED CONSOLIDATED SEGMENT DATA |
|||||||||||||
(Expressed in thousands of United States dollars, except for ratio information) |
|||||||||||||
U.S. |
International |
||||||||||||
Quarter Ended December 31, 2012 |
Insurance |
Insurance |
Reinsurance |
Total |
|||||||||
Gross premiums written |
$ |
260,604 |
$ |
156,605 |
$ |
79,843 |
$ |
497,052 |
|||||
Net premiums written |
192,142 |
91,198 |
79,283 |
362,623 |
|||||||||
Net premiums earned |
181,503 |
88,982 |
205,759 |
476,244 |
|||||||||
Net losses and loss expenses |
(155,279) |
(87,698) |
(171,757) |
(414,734) |
|||||||||
Acquisition costs |
(22,752) |
(890) |
(32,268) |
(55,910) |
|||||||||
General and administrative expenses |
(38,567) |
(24,898) |
(20,939) |
(84,404) |
|||||||||
Underwriting loss |
(35,095) |
(24,504) |
(19,205) |
(78,804) |
|||||||||
Net investment income |
38,360 |
||||||||||||
Net realized investment gains |
14,379 |
||||||||||||
Amortization of intangible assets |
(633) |
||||||||||||
Interest expense |
(13,826) |
||||||||||||
Foreign exchange loss |
(860) |
||||||||||||
Loss before income taxes |
$ |
(41,384) |
|||||||||||
GAAP Ratios: |
|||||||||||||
Loss and loss expense ratio |
85.6% |
98.6% |
83.5% |
87.1% |
|||||||||
Acquisition cost ratio |
12.5% |
1.0% |
15.7% |
11.7% |
|||||||||
General and administrative expense ratio |
21.2% |
28.0% |
10.2% |
17.7% |
|||||||||
Combined ratio |
119.3% |
127.6% |
109.4% |
116.5% |
|||||||||
U.S. |
International |
||||||||||||
Quarter Ended December 31, 2011 |
Insurance |
Insurance |
Reinsurance |
Total |
|||||||||
Gross premiums written |
$ |
227,005 |
$ |
130,920 |
$ |
58,612 |
$ |
416,537 |
|||||
Net premiums written |
169,097 |
79,813 |
57,922 |
306,832 |
|||||||||
Net premiums earned |
152,491 |
80,585 |
162,393 |
395,469 |
|||||||||
Net losses and loss expenses |
(92,953) |
(19,661) |
(100,731) |
(213,345) |
|||||||||
Acquisition costs |
(18,449) |
(165) |
(27,948) |
(46,562) |
|||||||||
General and administrative expenses |
(33,437) |
(21,351) |
(15,704) |
(70,492) |
|||||||||
Underwriting income |
7,652 |
39,408 |
18,010 |
65,070 |
|||||||||
Net investment income |
45,489 |
||||||||||||
Net realized investment gains |
31,632 |
||||||||||||
Other income - termination fee |
66,744 |
||||||||||||
Amortization of intangible assets |
(678) |
||||||||||||
Interest expense |
(13,754) |
||||||||||||
Foreign exchange gain |
549 |
||||||||||||
Income before income taxes |
$ |
195,052 |
|||||||||||
GAAP Ratios: |
|||||||||||||
Loss and loss expense ratio |
61.0% |
24.4% |
62.0% |
53.9% |
|||||||||
Acquisition cost ratio |
12.1% |
0.2% |
17.2% |
11.8% |
|||||||||
General and administrative expense ratio |
21.9% |
26.5% |
9.7% |
17.8% |
|||||||||
Combined ratio |
95.0% |
51.1% |
88.9% |
83.5% |
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG |
|||||||||||||
UNAUDITED CONSOLIDATED SEGMENT DATA |
|||||||||||||
(Expressed in thousands of United States dollars, except for ratio information) |
|||||||||||||
U.S. |
International |
||||||||||||
Year Ended December 31, 2012 |
Insurance |
Insurance |
Reinsurance |
Total |
|||||||||
Gross premiums written |
$ |
993,918 |
$ |
575,103 |
$ |
760,250 |
$ |
2,329,271 |
|||||
Net premiums written |
743,428 |
346,348 |
748,047 |
1,837,823 |
|||||||||
Net premiums earned |
671,594 |
336,787 |
740,517 |
1,748,898 |
|||||||||
Net losses and loss expenses |
(465,168) |
(163,130) |
(510,966) |
(1,139,264) |
|||||||||
Acquisition costs |
(86,670) |
486 |
(119,538) |
(205,722) |
|||||||||
General and administrative expenses |
(141,729) |
(91,867) |
(73,725) |
(307,321) |
|||||||||
Underwriting (loss) income |
(21,973) |
82,276 |
36,288 |
96,591 |
|||||||||
Net investment income |
167,141 |
||||||||||||
Net realized investment gains |
306,436 |
||||||||||||
Amortization of intangible assets |
(2,533) |
||||||||||||
Interest expense |
(55,405) |
||||||||||||
Foreign exchange loss |
(783) |
||||||||||||
Income before income taxes |
$ |
511,447 |
|||||||||||
GAAP Ratios: |
|||||||||||||
Loss and loss expense ratio |
69.3% |
48.4% |
69.0% |
65.1% |
|||||||||
Acquisition cost ratio |
12.9% |
(0.1%) |
16.1% |
11.8% |
|||||||||
General and administrative expense ratio |
21.1% |
27.3% |
10.0% |
17.6% |
|||||||||
Combined ratio |
103.3% |
75.6% |
95.1% |
94.5% |
|||||||||
U.S. |
International |
||||||||||||
Year Ended December 31, 2011 |
Insurance |
Insurance |
Reinsurance |
Total |
|||||||||
Gross premiums written |
$ |
838,567 |
$ |
530,450 |
$ |
570,504 |
$ |
1,939,521 |
|||||
Net premiums written |
639,196 |
325,094 |
569,476 |
1,533,766 |
|||||||||
Net premiums earned |
584,303 |
317,006 |
555,683 |
1,456,992 |
|||||||||
Net losses and loss expenses |
(387,099) |
(206,593) |
(365,464) |
(959,156) |
|||||||||
Acquisition costs |
(74,976) |
2,781 |
(95,100) |
(167,295) |
|||||||||
General and administrative expenses |
(124,434) |
(84,290) |
(62,932) |
(271,656) |
|||||||||
Underwriting (loss) income |
(2,206) |
28,904 |
32,187 |
58,885 |
|||||||||
Net investment income |
195,948 |
||||||||||||
Net realized investment gains |
10,077 |
||||||||||||
Other income - termination fee |
101,744 |
||||||||||||
Amortization of intangible assets |
(2,978) |
||||||||||||
Interest expense |
(54,989) |
||||||||||||
Foreign exchange loss |
(3,159) |
||||||||||||
Income before income taxes |
$ |
305,528 |
|||||||||||
GAAP Ratios: |
|||||||||||||
Loss and loss expense ratio |
66.2% |
65.2% |
65.8% |
65.8% |
|||||||||
Acquisition cost ratio |
12.8% |
(0.9%) |
17.1% |
11.5% |
|||||||||
General and administrative expense ratio |
21.3% |
26.6% |
11.3% |
18.6% |
|||||||||
Combined ratio |
100.3% |
90.9% |
94.2% |
95.9% |
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG |
|||||||||||||
UNAUDITED OPERATING INCOME RECONCILIATION |
|||||||||||||
(Expressed in thousands of United States dollars, except share and per share amounts) |
|||||||||||||
Quarter Ended December 31, |
Year Ended December 31, |
||||||||||||
2012 |
2011 |
2012 |
2011 |
||||||||||
Net (loss) income |
$ |
(41,147) |
$ |
183,100 |
$ |
493,007 |
$ |
274,548 |
|||||
Add after tax effect of: |
|||||||||||||
Net realized investment gains |
(15,104) |
(26,332) |
(291,139) |
(213) |
|||||||||
Other Income - termination fee |
- |
(61,538) |
- |
(93,808) |
|||||||||
Foreign exchange loss (gain) |
860 |
(549) |
783 |
3,159 |
|||||||||
Operating (loss) income |
$ |
(55,391) |
$ |
94,681 |
$ |
202,651 |
$ |
183,686 |
|||||
Weighted average common shares outstanding: |
|||||||||||||
Basic |
35,097,043 |
38,138,558 |
36,057,145 |
38,093,351 |
|||||||||
Diluted |
35,097,043 |
39,524,273 |
37,069,885 |
39,667,905 |
|||||||||
Basic per share data: |
|||||||||||||
Net (loss) income |
$ |
(1.17) |
$ |
4.80 |
$ |
13.67 |
$ |
7.21 |
|||||
Add after tax effect of: |
|||||||||||||
Net realized investment gains |
(0.43) |
(0.69) |
(8.07) |
(0.01) |
|||||||||
Other Income - termination fee |
- |
(1.62) |
- |
(2.46) |
|||||||||
Foreign exchange loss (gain) |
0.02 |
(0.01) |
0.02 |
0.08 |
|||||||||
Operating (loss) income |
$ |
(1.58) |
$ |
2.48 |
$ |
5.62 |
$ |
4.82 |
|||||
Diluted per share data: |
|||||||||||||
Net (loss) income |
$ |
(1.17) |
$ |
4.63 |
$ |
13.30 |
$ |
6.92 |
|||||
Add after tax effect of: |
|||||||||||||
Net realized investment gains |
(0.43) |
(0.67) |
(7.85) |
(0.01) |
|||||||||
Other Income - termination fee |
- |
(1.56) |
- |
(2.36) |
|||||||||
Foreign exchange loss (gain) |
0.02 |
- |
0.02 |
0.08 |
|||||||||
Operating (loss) income |
$ |
(1.58) |
$ |
2.40 |
$ |
5.47 |
$ |
4.63 |
|||||
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG |
|||||
UNAUDITED DILUTED BOOK VALUE PER SHARE RECONCILIATION |
|||||
(Expressed in thousands of United States dollars, except share and per share amounts) |
|||||
As of |
As of |
||||
December 31, |
December 31, |
||||
2012 |
2011 |
||||
Price per share at period end |
$ |
78.80 |
$ |
62.93 |
|
Total shareholders' equity |
$ |
3,326,335 |
$ |
3,149,022 |
|
Basic common shares outstanding |
34,797,781 |
37,742,131 |
|||
Add: unvested restricted share units |
135,123 |
249,251 |
|||
Add: performance based equity awards |
485,973 |
889,939 |
|||
Add: employee share purchase plan |
10,750 |
11,053 |
|||
Add: dilutive options outstanding |
1,224,607 |
1,525,853 |
|||
Weighted average exercise price per share |
$ |
47.02 |
$ |
45.72 |
|
Deduct: options bought back via treasury method |
(730,652) |
(1,108,615) |
|||
Common shares and common share |
|||||
equivalents outstanding |
35,923,582 |
39,309,612 |
|||
Basic book value per common share |
$ |
95.59 |
$ |
83.44 |
|
Diluted book value per common share |
$ |
92.59 |
$ |
80.11 |
|
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG |
||||||||||||
UNAUDITED ANNUALIZED RETURN ON SHAREHOLDERS' EQUITY RECONCILIATION |
||||||||||||
(Expressed in thousands of United States dollars, except for percentage information) |
||||||||||||
Quarter Ended December 31, |
Year Ended December 31, |
|||||||||||
2012 |
2011 |
2012 |
2011 |
|||||||||
Opening shareholders' equity |
$ |
3,435,786 |
$ |
3,003,074 |
$ |
3,149,022 |
$ |
3,075,820 |
||||
Deduct: accumulated other comprehensive income |
(1,385) |
(17,796) |
(14,484) |
(57,135) |
||||||||
Adjusted opening shareholders' equity |
3,434,401 |
2,985,278 |
3,134,538 |
3,018,685 |
||||||||
Closing shareholders' equity |
$ |
3,326,335 |
$ |
3,149,022 |
$ |
3,326,335 |
$ |
3,149,022 |
||||
Deduct: accumulated other comprehensive income |
- |
(14,484) |
- |
(14,484) |
||||||||
Adjusted closing shareholders' equity |
3,326,335 |
3,134,538 |
3,326,335 |
3,134,538 |
||||||||
Average shareholders' equity |
$ |
3,380,368 |
$ |
3,059,908 |
$ |
3,230,437 |
$ |
3,076,612 |
||||
Net (loss) income available to shareholders |
$ |
(41,147) |
$ |
183,100 |
$ |
493,007 |
$ |
274,548 |
||||
Annualized net (loss) income available to shareholders |
(164,588) |
732,400 |
493,007 |
274,548 |
||||||||
Annualized return on average shareholders' equity - |
||||||||||||
net (loss) income available to shareholders |
(4.9%) |
23.9% |
15.3% |
8.9% |
||||||||
Operating (loss) income available to shareholders |
$ |
(55,391) |
$ |
94,681 |
$ |
202,651 |
$ |
183,686 |
||||
Annualized operating (loss) income available to shareholders |
(221,564) |
378,724 |
202,651 |
183,686 |
||||||||
Annualized return on average shareholders' equity - |
||||||||||||
operating (loss) income available to shareholders |
(6.6%) |
12.4% |
6.3% |
6.0% |
SOURCE Allied World Assurance Company Holdings, AG
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