US-based reinsurance company Transatlantic Holdings has reported total revenues of $1.1bn for the second quarter ended June 30, 2010, up by 1.5% as compared to $1.09bn for the same quarter of previous year.
The company reported a net income of $111m, or $1.70 per common share (diluted), for the second quarter of 2010 compared to $112m, or $1.68 per common share (diluted), for the second quarter of 2009.
Net operating income for the second quarter of 2010 was $105m, or $1.62 per common share (diluted), compared to $129m, or $1.93 per common share (diluted), in the second quarter of 2009.
Second quarter 2010 net income and net operating income include $27m of pre-tax net costs (net of reinsurance and net reinstatement premiums) related to catastrophe events, including $14m attributable to the Deepwater Horizon explosion and additional costs associated with events occurring in earlier periods, principally the earthquake in Chile.
For the first six months of 2010, total revenues are $2.2bn, which is 2.4% up from the $2.15bn for the same period of previous year.
Net operating income for the first six months of 2010 totaled $122m, or $1.86 per common share (diluted), compared to $237m, or $3.55 per common share (diluted), for the first six months of 2009.
The decrease in net income and net operating income for the six month period was largely due to $157m of net pre-tax catastrophe costs recorded in the first six months of 2010, partially offset by related tax benefits of $40m, compared to a minimal amount of catastrophe costs in the first half of 2009.
Net premiums written of $947.6m, declining 4% from the prior year quarter, excluding the impact of foreign exchange. Net investment income of $ 947.6m, an increase of 4% year over year, has been reported.
Robert Orlich, president and CEO of Transatlantic Holdings, said: “We grew book value per share by 2.5% and achieved an annualized GAAP ROE of 11%, based on second quarter net income.”