The combined ratio for the quarter of 79.8% included pre-tax catastrophe losses, net of reinsurance recoveries and reinstatement premiums, of $17.6 million or 6.5 percentage points from the severe US storms in February and March. There were no material changes in estimates for the 2010 and 2011 catastrophe events. In addition, there were reinsurance losses of $5.1 million pre-tax, net of reinstatement premiums from the Costa Concordia event which impacted the combined ratio by 2.0 percentage points. In comparison, the combined ratio for the first quarter of 2011 was 178.2% which included pre-tax catastrophe losses, net of reinsurance recoveries and reinstatement premiums, of $284.8 million or 105.8 percentage points.
The segment underwriting profit for the first quarter of 2012 was $54.6 million compared with an underwriting loss of $212.5 million for the first quarter of 2011.
Operating highlights for Insurance for the quarter ended March 31, 2012 include:
- Gross written premiums of $307.9 million, up 31.5% compared with $234.2 million in the first quarter of 2011
- Net earned premiums of $224.4 million, an increase of 24.4% compared with the first quarter of 2011
- Combined ratio of 104.2% compared with 100.1% for the first quarter of 2011, with the increase primarily attributable to $26.5 million, or 11.6 percentage points, of pre-tax losses, net of reinsurance recoveries and reinstatement premiums, from the Costa Concordia event
- Favorable prior year loss reserve development of $8.9 million compared with $1.1 million in the first quarter of 2011
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