Chartis’ third quarter 2010 operating income before net realised capital gains (losses) was $1.1 bn compared to $719 m in the third quarter of 2009.
It added these results were primarily driven by an improvement in underwriting income; and reflect the consolidation of Fuji Fire & Marine Insurance Company following the previously announced acquisition of a controlling stake in this publicly-traded Japanese insurance company.
In the third quarter of 2010, combined ratio was 99.3 compared to 105.2 in the prior year period. The current period combined ratio, excluding catastrophe losses, was 98.4, compared to 104.5 in the prior year, a 6.1 point improvement.
In the current quarter, Chartis recorded $208 m of adverse prior year development, net of reserve discount, compared to $246 m of adverse development in the prior year period.
Included in the 2010 prior year development, Chartis added, is $122 m, net of reserve discount, related to asbestos claims recorded during the current year and one large claim attributable to the 2007 California wildfires.
Worldwide net premiums written of $8.6 bn increased by seven percent compared to the same period last year.
However, Chartis said excluding Fuji, worldwide net premiums written declined by four percent as a result of challenging economic conditions impacting ratable exposures and a competitive property casualty market.
Chartis' parent AIG reported a net loss attributable to AIG of $2.4 bn for the third quarter of 2010, compared to net income of $455 m in the third quarter of 2009.
Income from continuing insurance operations was stable, at $2.1 bn.
The net loss in the quarter is primarily attributable to restructuring-related charges including a $1.3 bn deferred tax asset valuation allowance charge in connection with a net decrease in underlying asset values supporting the DTA; a $1.9 bn loss on the pending sale of American General Finance; and a $1.3 bn goodwill impairment charge in connection with the pending sale of AIG Star Life Insurance and AIG Edison Life Insurance Company.
Partially offsetting these charges is a $1.4 bn tax benefit related to a deferred tax valuation allowance release.
Read more: http://www.postonline.co.uk/post/news/1894150/chartis-cor-improve-993-q3-2010-aig-records-usd24bn-loss?WT.rss_f=News&WT.rss_a=Chartis+sees+COR+improve+to+99.3%25+in+Q3+2010%2C+as+AIG+records+%242.4bn+loss+#ixzz14mFAmihH
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It’s just third quarter heaven today! Stats, profits and losses flying all over the place, the stock market will be interesting viewing today. As for the above, Chartis is keeping the British end up in AIG’s decline. Rule Britannia!
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