ZURICH REINSURANCE TURNS AROUND,
POSTS PROFIT FOR THE SECOND QUARTER
NEW YORK - Zurich Reinsurance Centre Holdings Inc. has announced a markedly improved result for the second quarter of 1995.
Net income was $19.3 million, or 14 cents a share, compared with a loss of $7.27 million, or 4 cents a share, for the second quarter of 1994.
For the six months ending June 30, the company reported net income, excluding realized capital gains, of $7 million, or 27 cents a share, compared with a loss of $6.5 million, or 25 cents a share, for the first six months of 1994.
ZRC's total revenue for the second quarter of 1995 was $150.5 million, compared with $47.2 million for the second quarter of 1994. For the first six months of 1995, total revenue was $252.8 million, compared with $93.6 million for the first half of 1994.
Net premiums for the second quarter of 1995 alone increased 122 percent, to $129.1 million from $58.2 million, partially because of the ZRC's acquisition of Re Capital Corp in April.
ZRC Holdings bought Re Capital, which offers treaty reinsurance to domestic property/casualty insurers, for about $206 million, taking nearly 7 million shares of stock at $18.50 per share.
ZRC's statutory combined ratio - premiums received over claims paid out - for the six months ended June 30 was 108 percent, down significantly from 123.9 percent for the first half of 1994. The company said that its improved combined ratio was because of a lack of losses from catastrophes in the first half of this year, as well as reduced operating expenses relative to premium volume.
"This quarter's premium growth is consistent with the tremendous growth we have seen over the past six quarters. However, we believe overall pricing conditions continue to deteriorate," said Steven M. Gluckstern, ZRC chairman and chief operating officer.
He added that the company's profit relied on underlying risk exposures and not fluctuations in market pricing.
"We are confident of the high quality of business we are writing," he said.
ZRC, through its operating subsidiary, is the main U.S. underwriting affiliate for traditional property and casualty reinsurance of the Zurich Insurance Co. ZRC is 58 percent owned by Zurich Centre Investments Ltd.
GENERAL RE'S PROFIT
ROSE IN 2ND QUARTER
STAMFORD, Conn. - General Re Corp., the largest U.S.-based reinsurance company by net premiums, saw its second-quarter net income rise to $214.2 million, or $2.58 a share, from $177 million, or $2.12 a share, for the same period in 1994.
For the first six months of 1995, net income also grew, to $397.3 million, or $4.78 a share, from $274.9 million, or $3.27 a share, for the year-earlier period.
Worldwide net premium volume for the second quarter jumped to $1.8 billion
from $665 million in the three-month period in 1994, thanks to the inclusion of financial results from Cologne Re, the world's oldest reinsurer, which General Re owns through a joint venture with Colonia Konzern AG.
"Our results for the second quarter were in line with our expectations and our goals," said General Re's chairman and chief executive, Ronald E. Ferguson. "This quarter is also significant because we now, for the first time, include the operating results of the Cologne Re."
General Re's total revenue rose to $1.9 billion in the quarter from $678.2 million in the same period last year. For the six months, revenue increased to $3.2 billion from $1.9 billion last year.
The combined ratio for the company's domestic property/casualty insurance operations worsened slightly to 99 percent for the quarter from 98.5 percent for the year-earlier period. The quarterly ratio for international operations improved to 104.5 percent from 109.8 percent in 1994.
For the six months, the combined ratio improved to 99.3 percent from 106.2 percent for domestic operations in 1994, but deteriorated to 101.6 percent
from 100 percent last year for international operations. A combined ratio measures the percentage of premium spent on claims and expenses.
NEW YORK - NYMAGIC Inc. reported an increase in second quarter net income to $4.9 million, or 43 cents a share, from $3.8 million or 33 cents a share, a year ago.
Net income for the six months jumped to $9.5 million, or 83 cents a share,
from $2.7 million, or 23 cents a share, for the period in 1994, thanks to increases in realized investment gains and earned premiums.
Total revenue increased to $33.3 million for the second quarter over last year's $26.5 million. Revenue for the six months ended June 30 rose to $65.5 million from $51.6 million in 1994.
NYMAGIC, whose property/casualty subsidiaries provide ocean marine, inland marine, aircraft and non-marine liability coverages, did not release its combined ratio, and a spokesman was unavailable for comment Wednesday.
ZURICH REINSURANCE TURNS AROUND,
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