Reinsurer Max Re Capital has reported a net loss for the three months ended December 31, 2005 of $11.4 million, compared to net income of $87.1 million, for the last quarter of 2004. Net operating loss for the three months ended December 31, 2005 was $7.9 million, compared with a net operating gain of $80.8 million for the three months ended December 31, 2004.
For the year ended December 31, 2005, Max Re had net income of $6.7 million, compared to $133.7 million for the year ended December 31, 2004. For 2005, the company had net operating income of $7.4 million, compared to $123.3 million for 2004.
Robert Cooney, chairman, president and chief executive officer, commented: The company recorded a reduction in net income of $157.4 million from natural catastrophes during 2005, but despite these events we are pleased to report a small net income for the year. We successfully raised $284.1 million in a public common share offering in the fourth quarter of 2005 and are well positioned to participate in the expected attractive market for our products in upcoming months.
Gross premiums written for the three months ended December 31, 2005 were $257.2 million, of which $251.3 million came from property and casualty underwriting and $5.9 million from life and annuity underwriting, compared to $139.6 million, $104.6 million coming from property and casualty underwriting and $35.0 million of life and annuity underwriting, for the three months ended December 31, 2004.
Net premiums earned for the last three months of 2005 were $256.7 million compared to $216.0 million for the same period of 2004, the increase is principally due to $123.9 million of additional property and casualty premiums written and earned on a prior period contract.
Gross premiums written for the year ended December 31, 2005 were $1,246.0 million compared to $1,043.6 million for 2004. Property and casualty reinsurance, property and casualty insurance and life and annuity reinsurance accounted for 49.4%, 28.5% and 22.1%, respectively, of gross premiums. Net premiums earned for the year increased 13.2% to $1,039.4 million compared to $917.8 million for the same period in 2004.