BY MARK E. RUQUET AND CHAD HEMENWAY
Allstate Corp. saw its fourth-quarter net income jump 145 percent, while W.r. Berkley, aCe limited, CNa and
Validus reported Q4 net-income decreases
along with global reinsurer Munich re.
allstate says it saw improved
profitability in its insurance business and
solid performance in its financial segment.
Its fourth-quarter net income increased by
$428 million to $724 million.
For the year, net income
dropped 15 percent, or $140
million, to $788 million.
the company’s combined
ratio improved 10.1 points to
90.7 in the quarter but rose 5. 3
points to 103.4 for the year as
For allstate’s financial segment,
the company reports fourth-quarter net income of $140
million, an increase of 84 percent
or $64 million. on the year,
financial-segment net income rose
$528 million to $586 million.
The Hartford’s 2011 fourth-quarter net income plummeted
79 percent to $127 million on above-normal catastrophe and non-cat losses,
low interest rates and volatility in the
Net income for the year fell 61 percent
to $662 million.
Hartford president/Ceo liam e. McGee
said during a conference call that the p&C
commercial market saw firming “across
the board” in the fourth quarter, with a 7
percent increase in middle markets. the
acceleration of rate increases during 2011’s
last quarter “exceeded loss costs for most
lines,” he added.
the company’s results in its commercial-markets segment were hurt by higher
Workers’ Compensation loss costs, which
drove up the combined ratio in the segment
to 101.5 (excluding catastrophes and prior-year development).
Income in the fourth quarter was reduced
by net prior-year reserve strengthening of $64
million in commercial markets, consumer
markets and other operations. Hartford also
upped reserves in the Workers’ Compensation
line for the 2010 accident year.
CARRIER AND BROKER NET INCOME
4Q 2011 4Q 2010
years 2008 and 2009 and have yet to begin
feeling the pain from that underpricing—
which in turn will increase the pressure on
the industry to ramp up rates.
Bermuda-based ACE Ltd. says its 2011
fourth-quarter net income fell 25 percent
to $750 million, as catastrophe losses more
than doubled compared to 2010’s fourth
quarter, when net income was $1 billion.
Fourth-quarter catastrophe losses were
$155 million, with $117 million
stemming from thailand floods,
compared to $50 million in
catastrophe losses in Q4 2010.
For the year, aCe reports
net income of $1.6 billion,
compared to $3.1 billion in 2010.
again, catastrophe losses, at
$899 million, were significantly
higher in 2011 compared to
2010, when catastrophe losses
were $401 million.
CNA says 2011 fourth-quarter
net income dropped 37
percent to $190 million on
the combination of lower net-
investment income, catastrophe
losses and reserve charges in its life business.
the combined ratio for the company
improved 2.4 points to 87.2.
For the year, the company says net
income dropped 11 percent, or $76 million,
to $614 million. the combined ratio rose
3. 6 points to 98.4.
Munich Re, reporting its annual results,
says it recorded 2011 profits of €710
million ($920 million), down from €2.43
billion ($3.19 billion) in 2010. CFo Jörg
schneider says the number is a “respectable
profit given the exceptional burdens.”
Validus Holdings Ltd.’s fourth-quarter
net income available to shareholders
plummeted more than 73 percent to $27.3
million, as insured losses from catastrophes
continued to take their toll.
For the year, Bermuda-based Validus
says net income available to shareholders
was down 94.7 percent to $21.3 million.
the company’s combined ratio soared
to 97.4 in the quarter, up from 67.7 a year
ago, and rose to 99.4 for the year, up from
86.2 in 2010. NU
Source: Company results
what McGee described as an “objective
and pragmatic” review of the company—
“thoroughly and rigorously” looking at
ways to deliver shareholder value. one
option being considered is splitting its life
and p&C companies.
Greenwich, Conn.-based insurer
W.R. Berkley says 2011 fourth-quarter
net income was down 7 percent to $118
million, primarily due to increases in losses
and loss expenses, in addition to operating
costs and expenses. But the company’s
chief executive says rate increases are taking
hold and 2012 looks to be a better year.
W.r. Berkley’s combined ratio rose 2.7
points in the quarter to 96.8.
For the year, net income dropped 12
percent, or $54 million, to $395 million
compared to 2010. revenues increased 9
percent, or $432 million, to $5.2 billion.
the company’s combined ratio for 2011
increased 3.8 points to 98.3.
During a conference call with financial
analysts, Ceo William r. Berkley said many
insurers underpriced risk during accident