Attached files
Exhibit 99.2
| ALTERRA CAPITAL HOLDINGS LIMITED
Investor Financial Supplement
First Quarter 2011 (Unaudited) |
This supplement is for information purposes only. It should be read in conjunction with documents filed by Alterra Capital
Holdings Limited with the U.S. Securities and Exchange Commission pursuant to the Securities Exchange Act 1934.
Alterra Capital Holdings Limited
Investors:
Susan Spivak Bernstein, +1-212-898-6640
or
Media:
Kekst and Company
Roanne Kulakoff or Peter Hill, +1-212-521-4800
ALTERRA CAPITAL HOLDINGS LIMITED
Cautionary note regarding forward-looking information
This financial supplement may include forward-looking statements that reflect Alterra’s current views with respect to future events and financial performance. Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “will,” “may” and similar statements of a future or forward-looking nature identify forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are important factors that could cause actual results to differ materially from those indicated in such statements and you should not place undue reliance on any such statements.
These factors include, but are not limited to, the following: (1) the adequacy of loss reserves and the need to adjust such reserves as claims develop over time; (2) the failure of any of the loss limitation methods employed; (3) the effect of cyclical trends, including with respect to demand and pricing in the insurance and reinsurance markets; (4) changes in general economic conditions, including changes in capital and credit markets; (5) any lowering or loss of financial ratings; (6) the occurrence of natural or man-made catastrophic events with a frequency or severity exceeding expectations; (7) actions by competitors, including consolidation; (8) the effects of emerging claims and coverage issues; (9) the loss of business provided to Alterra by its major brokers; (10) the effect on Alterra’s investment portfolio of changing financial market conditions including inflation, interest rates, liquidity and other factors; (11) tax and regulatory changes and conditions; (12) retention of key personnel; and (13) the integration of new business ventures Alterra may enter into; as well as management’s response to any of the aforementioned factors.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in Alterra’s most recent reports on Form 10-K and Form 10-Q and other documents on file with the U.S. Securities and Exchange Commission. Any forward-looking statements made in this financial supplement are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by Alterra will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Alterra or its business or operations. Alterra undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
1
ALTERRA CAPITAL HOLDINGS LIMITED
FINANCIAL SUPPLEMENT TABLE OF CONTENTS
| Page | ||||
| Financial Highlights |
4 | |||
| Consolidated Balance Sheets |
5 | |||
| Consolidated Statements of Income - Quarterly |
6 | |||
| Segment Data and Ratios - Quarterly |
8 | |||
| Gross Premiums Written by Line of Business - Quarterly |
15 | |||
| Investment Portfolio |
17 | |||
| Shareholder Return Analysis |
20 | |||
| Earnings Per Share Information |
21 | |||
| Operating Income Reconciliation |
22 | |||
| Book Value per Share |
23 | |||
| Regulation G |
24 | |||
| Reclassified Historical Segment Information |
25 | |||
| Pro forma Consolidated Statements of Income |
29 | |||
ALTERRA CAPITAL HOLDINGS LIMITED
FINANCIAL HIGHLIGHTS
(Expressed in thousands of United States Dollars, except per share and share amounts)
| For The Quarters Ended | ||||||||||||
| March 31, 2011 | March 31, 2010 | Previous Year Quarter Change |
||||||||||
| HIGHLIGHTS |
||||||||||||
| Net (loss) income |
$ | (46,687 | ) | $ | 36,381 | (228.3 | %) | |||||
| Net operating (loss) income [a] |
(24,725 | ) | 40,681 | (160.8 | %) | |||||||
| Operating cashflow |
46,909 | 46,800 | 0.2 | % | ||||||||
| Gross premiums written |
627,848 | 371,139 | 69.2 | % | ||||||||
| Net premiums earned |
379,887 | 194,240 | 95.6 | % | ||||||||
| Total assets |
10,250,379 | 7,474,206 | 37.1 | % | ||||||||
| Total shareholders’ equity |
2,723,194 | 1,613,116 | 68.8 | % | ||||||||
| PER SHARE |
||||||||||||
| Basic earnings per share |
||||||||||||
| Net (loss) income |
$ | (0.44 | ) | $ | 0.64 | |||||||
| Net operating (loss) income [a] |
(0.23 | ) | 0.72 | |||||||||
| Diluted earnings per share |
||||||||||||
| Net (loss) income |
$ | (0.44 | ) | $ | 0.63 | |||||||
| Net operating (loss) income [a] |
(0.23 | ) | 0.71 | |||||||||
| Weighted average shares outstanding - basic |
107,165,228 | 56,516,593 | ||||||||||
| Weighted average shares outstanding - diluted |
107,165,228 | 57,383,748 | ||||||||||
| Book value per common share [b] |
$ | 25.76 | $ | 28.31 | (9.0 | %) | ||||||
| Diluted book value per share (treasury stock method) [b] |
25.34 | 27.86 | (9.1 | %) | ||||||||
| Diluted tangible book value per share (treasury stock method) [b] |
24.79 | 27.02 | (8.2 | %) | ||||||||
| RATIOS |
||||||||||||
| Annualized return on average shareholders’ equity [c] |
(6.6 | %) | 9.2 | % | ||||||||
| Annualized net operating return on average shareholders’ equity [c] |
(3.5 | %) | 10.2 | % | ||||||||
| Loss ratio [d] |
80.2 | % | 64.6 | % | ||||||||
| Acquisition cost ratio [d] |
18.6 | % | 12.5 | % | ||||||||
| General and administrative expense ratio [d] |
13.8 | % | 13.5 | % | ||||||||
| Combined ratio [d] |
112.5 | % | 90.5 | % | ||||||||
| [a] | Net operating income represents net income excluding, as applicable, after-tax net realized and unrealized gains and losses on non-hedge fund investments, after-tax net foreign exchange gains or losses, and after-tax merger and acquisition expenses. |
| [b] | For detailed calculations see page 23. |
| [c] | For detailed calculations see page 20. |
| [d] | For property and casualty business only. |
4
ALTERRA CAPITAL HOLDINGS LIMITED
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States Dollars, except per share and share amounts)
| Mar. 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
Mar. 31, 2010 |
||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||
| ASSETS |
||||||||||||||||||||
| Cash and cash equivalents |
$ | 1,001,051 | $ | 905,606 | $ | 925,752 | $ | 741,684 | $ | 690,246 | ||||||||||
| Fixed maturities, trading, at fair value |
214,807 | 244,872 | 243,158 | 230,251 | 219,332 | |||||||||||||||
| Fixed maturities, available for sale, at fair value |
5,290,684 | 5,392,643 | 5,425,955 | 5,451,969 | 3,158,131 | |||||||||||||||
| Fixed maturities, held to maturity, at amortized cost |
983,207 | 940,104 | 954,623 | 871,651 | 954,696 | |||||||||||||||
| Other investments, at fair value |
357,655 | 378,128 | 411,275 | 436,757 | 325,359 | |||||||||||||||
| Accrued interest income |
69,497 | 75,414 | 73,622 | 67,561 | 51,906 | |||||||||||||||
| Premiums receivable |
809,483 | 588,537 | 664,603 | 780,025 | 617,560 | |||||||||||||||
| Losses and benefits recoverable from reinsurers |
1,053,223 | 956,115 | 976,819 | 962,442 | 1,023,224 | |||||||||||||||
| Deferred acquisition costs |
149,197 | 111,901 | 106,728 | 89,881 | 72,195 | |||||||||||||||
| Prepaid reinsurance premiums |
176,918 | 149,252 | 173,140 | 207,102 | 232,947 | |||||||||||||||
| Trades pending settlement |
— | 32,393 | 24,364 | — | — | |||||||||||||||
| Goodwill and intangible assets |
58,585 | 59,076 | 60,670 | 60,670 | 48,686 | |||||||||||||||
| Other assets |
86,072 | 83,247 | 78,225 | 74,943 | 79,924 | |||||||||||||||
| Total assets |
$ | 10,250,379 | $ | 9,917,288 | $ | 10,118,934 | $ | 9,974,936 | $ | 7,474,206 | ||||||||||
| LIABILITIES |
||||||||||||||||||||
| Property and casualty losses |
$ | 4,185,230 | $ | 3,906,134 | $ | 3,847,366 | $ | 3,772,622 | $ | 3,220,357 | ||||||||||
| Life and annuity benefits |
1,316,287 | 1,275,580 | 1,299,190 | 1,209,031 | 1,306,916 | |||||||||||||||
| Deposit liabilities |
147,424 | 147,612 | 147,212 | 147,727 | 149,028 | |||||||||||||||
| Funds withheld from reinsurers |
122,072 | 121,107 | 119,859 | 120,324 | 138,984 | |||||||||||||||
| Unearned property and casualty premiums |
1,065,160 | 905,487 | 1,015,831 | 1,090,323 | 690,013 | |||||||||||||||
| Reinsurance balances payable |
127,299 | 102,942 | 122,184 | 295,979 | 168,329 | |||||||||||||||
| Accounts payable and accrued expenses |
103,376 | 99,680 | 90,282 | 81,846 | 61,955 | |||||||||||||||
| Trades pending settlement |
19,855 | — | — | 39,641 | 35,033 | |||||||||||||||
| Bank loans |
— | — | — | 200,000 | — | |||||||||||||||
| Senior notes |
440,482 | 440,476 | 440,473 | 90,476 | 90,475 | |||||||||||||||
| Total liabilities |
7,527,185 | 6,999,018 | 7,082,397 | 7,047,969 | 5,861,090 | |||||||||||||||
| SHAREHOLDERS’ EQUITY |
||||||||||||||||||||
| Preferred shares (par value $1.00) 20,000,000 shares authorized; no shares issued or outstanding |
— | — | — | — | — | |||||||||||||||
| Common shares (par value $1.00) 200,000,000 shares authorized; 105,733,610 shares issued and outstanding |
105,734 | 110,963 | 115,899 | 118,643 | 56,980 | |||||||||||||||
| Additional paid-in capital |
1,905,144 | 2,026,045 | 2,113,732 | 2,157,700 | 744,466 | |||||||||||||||
| Accumulated other comprehensive income |
89,233 | 98,946 | 190,325 | 102,718 | 49,822 | |||||||||||||||
| Retained earnings |
623,083 | 682,316 | 616,581 | 547,906 | 761,848 | |||||||||||||||
| Total shareholders’ equity |
2,723,194 | 2,918,270 | 3,036,537 | 2,926,967 | 1,613,116 | |||||||||||||||
| Total liabilities and shareholders’ equity |
$ | 10,250,379 | $ | 9,917,288 | $ | 10,118,934 | $ | 9,974,936 | $ | 7,474,206 | ||||||||||
| Book value per share |
$ | 25.76 | $ | 26.30 | $ | 26.20 | $ | 24.67 | $ | 28.31 | ||||||||||
| Diluted book value per share (treasury stock method) |
$ | 25.34 | $ | 25.99 | $ | 25.88 | $ | 24.55 | $ | 27.86 | ||||||||||
| Diluted tangible book value per share (treasury stock method) |
$ | 24.79 | $ | 25.46 | $ | 25.37 | $ | 24.04 | $ | 27.02 | ||||||||||
| Debt-to-capital ratio [a] |
13.9 | % | 13.1 | % | 12.7 | % | 9.0 | % | 5.3 | % | ||||||||||
| [a] | Calculated as debt, being bank loans and senior notes, divided by shareholders’ equity plus debt. |
5
ALTERRA CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - QUARTERLY (Unaudited)
(Expressed in thousands of United States Dollars, except per share and share amounts)
| FOR THE QUARTERS ENDED | ||||||||||||||||||||||||
| Mar. 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 [f] |
Mar. 31, 2010 |
Mar. 31, 2009 |
|||||||||||||||||||
| REVENUES |
||||||||||||||||||||||||
| Gross premiums written |
$ | 627,848 | $ | 315,398 | $ | 325,213 | $ | 398,981 | $ | 371,139 | $ | 434,273 | ||||||||||||
| Reinsurance premiums ceded |
(137,357 | ) | (77,617 | ) | (60,611 | ) | (79,715 | ) | (153,220 | ) | (164,379 | ) | ||||||||||||
| Net premiums written |
$ | 490,491 | $ | 237,781 | $ | 264,602 | $ | 319,266 | $ | 217,919 | $ | 269,894 | ||||||||||||
| Earned premiums |
$ | 489,262 | $ | 445,683 | $ | 436,244 | $ | 391,723 | $ | 304,997 | $ | 309,382 | ||||||||||||
| Earned premiums ceded |
(109,375 | ) | (103,129 | ) | (93,812 | ) | (98,463 | ) | (110,757 | ) | (119,100 | ) | ||||||||||||
| Net premiums earned |
379,887 | 342,554 | 342,432 | 293,260 | 194,240 | 190,282 | ||||||||||||||||||
| Net investment income |
57,766 | 61,080 | 59,711 | 53,277 | 48,390 | 40,488 | ||||||||||||||||||
| Net realized and unrealized (losses) gains on investments |
(18,818 | ) | 9,825 | 15,411 | (14,786 | ) | 6,422 | 18,441 | ||||||||||||||||
| Total other-than-temporary impairment losses |
(1,124 | ) | (3,918 | ) | (90 | ) | (1,167 | ) | (698 | ) | — | |||||||||||||
| Portion of loss recognized in other comprehensive income (loss) before taxes |
95 | 2,144 | (61 | ) | 867 | 278 | — | |||||||||||||||||
| Net impairment losses recognized in earnings |
(1,029 | ) | (1,774 | ) | (151 | ) | (300 | ) | (420 | ) | — | |||||||||||||
| Other income |
1,315 | 2,862 | 1,327 | 275 | 344 | 1,306 | ||||||||||||||||||
| Total revenues |
419,121 | 414,547 | 418,730 | 331,726 | 248,976 | 250,517 | ||||||||||||||||||
| LOSSES AND EXPENSES |
||||||||||||||||||||||||
| Net losses and loss expenses |
304,406 | 179,047 | 191,012 | 159,817 | 124,965 | 124,723 | ||||||||||||||||||
| Claims and policy benefits |
14,710 | 18,551 | 15,060 | 13,943 | 17,659 | 14,332 | ||||||||||||||||||
| Acquisition costs |
70,608 | 53,563 | 60,859 | 48,798 | 24,244 | 20,630 | ||||||||||||||||||
| Interest expense |
8,459 | 7,866 | 7,551 | 7,916 | 4,942 | 3,939 | ||||||||||||||||||
| Net foreign exchange (gains) losses |
(878 | ) | (382 | ) | 3,353 | (634 | ) | (2,452 | ) | (3,476 | ) | |||||||||||||
| Merger and acquisition expenses |
— | 500 | 550 | (54,570 | ) | 4,744 | 5,223 | |||||||||||||||||
| General and administrative expenses |
71,203 | 76,759 | 56,650 | 50,649 | 36,528 | 39,060 | ||||||||||||||||||
| Total losses and expenses |
468,508 | 335,904 | 335,035 | 225,919 | 210,630 | 204,431 | ||||||||||||||||||
| (LOSS) INCOME BEFORE TAXES |
(49,387 | ) | 78,643 | 83,695 | 105,807 | 38,346 | 46,086 | |||||||||||||||||
| Income tax (benefit) expense |
(2,700 | ) | (1,027 | ) | 858 | 2,360 | 1,965 | 1,547 | ||||||||||||||||
| NET (LOSS) INCOME |
(46,687 | ) | 79,670 | 82,837 | 103,447 | 36,381 | 44,539 | |||||||||||||||||
| Change in net unrealized gains and losses on fixed maturities, net of tax |
(14,586 | ) | (87,633 | ) | 74,383 | 60,525 | 34,131 | (66,098 | ) | |||||||||||||||
| Foreign currency translation adjustment |
4,873 | (3,746 | ) | 13,224 | (7,629 | ) | (9,740 | ) | 3,909 | |||||||||||||||
| COMPREHENSIVE (LOSS) INCOME |
$ | (56,400 | ) | $ | (11,709 | ) | $ | 170,444 | $ | 156,343 | $ | 60,772 | $ | (17,650 | ) | |||||||||
| KEY RATIOS/PER SHARE DATA |
||||||||||||||||||||||||
| Loss ratio [a] |
80.2 | % | 52.5 | % | 56.0 | % | 54.6 | % | 64.6 | % | 65.7 | % | ||||||||||||
| Acquisition cost ratio [b] |
18.6 | % | 15.7 | % | 17.8 | % | 16.6 | % | 12.5 | % | 10.8 | % | ||||||||||||
| General and administrative expense ratio [c] |
13.8 | % | 16.6 | % | 12.2 | % | 12.1 | % | 13.4 | % | 13.2 | % | ||||||||||||
| Combined ratio |
112.5 | % | 84.8 | % | 86.0 | % | 83.3 | % | 90.5 | % | 89.7 | % | ||||||||||||
| Basic earnings per share |
$ | (0.44 | ) | $ | 0.71 | $ | 0.71 | $ | 1.14 | $ | 0.64 | $ | 0.79 | |||||||||||
| Diluted earnings per share |
$ | (0.44 | ) | $ | 0.70 | $ | 0.70 | $ | 1.13 | $ | 0.63 | $ | 0.78 | |||||||||||
| Net operating (loss) income per share - diluted [d] |
$ | (0.23 | ) | $ | 0.64 | $ | 0.64 | $ | 0.64 | $ | 0.71 | $ | 0.82 | |||||||||||
| Annualized ROAE [e] |
(6.6 | %) | 11.1 | % | 11.1 | % | 17.8 | % | 9.2 | % | 14.0 | % | ||||||||||||
| Annualized net operating ROAE [e] |
(3.5 | %) | 10.2 | % | 10.2 | % | 10.1 | % | 10.2 | % | 14.8 | % | ||||||||||||
| [a] | The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned for the property & casualty business |
| [b] | The acquisition cost ratio is calculated by dividing acquisition costs by net premiums earned for the property & casualty business |
| [c] | The general and administrative expense ratio is calculated by dividing general and administrative expenses by net premiums earned for the property & casualty business |
| [d] | See page 22 for calculation of net operating income per share - diluted. |
| [e] | See page 20 for calculation of annualized return on average shareholders’ equity (ROAE) and annualized net operating ROAE |
| [f] | Includes the results for Harbor Point Limited (“Harbor Point”) from May 12, 2010. |
6
ALTERRA CAPITAL HOLDINGS LIMITED
SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–THREE MONTHS ENDED MARCH 31, 2011 (Unaudited)
(Expressed in thousands of United States Dollars)
| Property & Casualty | Life & Annuity |
Corporate | Consolidated | |||||||||||||||||||||||||||||
| Insurance | Reinsurance | U.S. Specialty |
Alterra at Lloyd’s |
Total | Reinsurance | |||||||||||||||||||||||||||
| Gross premiums written |
$ | 71,272 | $ | 375,020 | $ | 70,388 | $ | 110,733 | $ | 627,413 | $ | 435 | $ | — | $ | 627,848 | ||||||||||||||||
| Reinsurance premiums ceded |
(43,246 | ) | (37,317 | ) | (33,595 | ) | (23,179 | ) | (137,337 | ) | (20 | ) | — | (137,357 | ) | |||||||||||||||||
| Net premiums written |
$ | 28,026 | $ | 337,703 | $ | 36,793 | $ | 87,554 | $ | 490,076 | $ | 415 | $ | — | $ | 490,491 | ||||||||||||||||
| Earned premiums |
$ | 98,944 | $ | 249,901 | $ | 73,177 | $ | 66,805 | $ | 488,827 | $ | 435 | $ | — | $ | 489,262 | ||||||||||||||||
| Earned premiums ceded |
(44,730 | ) | (20,195 | ) | (23,850 | ) | (20,580 | ) | (109,355 | ) | (20 | ) | — | (109,375 | ) | |||||||||||||||||
| Net premiums earned |
54,214 | 229,706 | 49,327 | 46,225 | 379,472 | 415 | — | 379,887 | ||||||||||||||||||||||||
| Net losses and loss expenses |
(34,664 | ) | (186,885 | ) | (31,375 | ) | (51,482 | ) | (304,406 | ) | — | — | (304,406 | ) | ||||||||||||||||||
| Claims and policy benefits |
— | — | — | — | — | (14,710 | ) | — | (14,710 | ) | ||||||||||||||||||||||
| Acquisition costs |
(184 | ) | (49,143 | ) | (8,066 | ) | (13,056 | ) | (70,449 | ) | (159 | ) | — | (70,608 | ) | |||||||||||||||||
| General and administrative expenses |
(9,825 | ) | (23,258 | ) | (9,397 | ) | (9,723 | ) | (52,203 | ) | (177 | ) | — | (52,380 | ) | |||||||||||||||||
| Other income |
812 | — | — | 215 | 1,027 | — | — | 1,027 | ||||||||||||||||||||||||
| Underwriting income (loss) |
10,353 | (29,580 | ) | 489 | (27,821 | ) | (46,559 | ) | n/a | — | n/a | |||||||||||||||||||||
| Net investment income |
12,343 | 45,423 | 57,766 | |||||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on investments |
2,807 | (21,625 | ) | (18,818 | ) | |||||||||||||||||||||||||||
| Net impairment losses recognized in earnings |
(1,029 | ) | (1,029 | ) | ||||||||||||||||||||||||||||
| Corporate other income |
288 | 288 | ||||||||||||||||||||||||||||||
| Interest expense |
(8,459 | ) | (8,459 | ) | ||||||||||||||||||||||||||||
| Net foreign exchange gains |
878 | 878 | ||||||||||||||||||||||||||||||
| Corporate general and administrative expenses |
(18,823 | ) | (18,823 | ) | ||||||||||||||||||||||||||||
| Income (loss) before taxes |
$ | 519 | $ | (3,347 | ) | $ | (49,387 | ) | ||||||||||||||||||||||||
| Loss ratio [a] |
63.9 | % | 81.4 | % | 63.6 | % | 111.4 | % | 80.2 | % | ||||||||||||||||||||||
| Acquisition cost ratio [b] |
0.3 | % | 21.4 | % | 16.4 | % | 28.2 | % | 18.6 | % | ||||||||||||||||||||||
| General and administrative expense ratio [c] |
18.1 | % | 10.1 | % | 19.1 | % | 21.0 | % | 13.8 | % | ||||||||||||||||||||||
| Combined ratio |
82.4 | % | 112.9 | % | 99.0 | % | 160.7 | % | 112.5 | % | ||||||||||||||||||||||
| [a] | The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned for the property & casualty business |
| [b] | The acquisition cost ratio is calculated by dividing acquisition costs by net premiums earned for the property & casualty business |
| [c] | The general and administrative expense ratio is calculated by dividing general and administrative expenses by net premiums earned for the property & casualty business |
Percentage totals may not add due to rounding.
7
ALTERRA CAPITAL HOLDINGS LIMITED
CONSOLIDATED UNDERWRITING RATIOS - THREE MONTHS ENDED MARCH 31, 2011 (Unaudited)
| Property & Casualty | ||||||||||||||||||||
| Insurance | Reinsurance | U.S. Specialty | Alterra at Lloyd’s | Total | ||||||||||||||||
| UNDERWRITING RATIOS |
||||||||||||||||||||
| Loss ratio |
63.9 | % | 81.4 | % | 63.6 | % | 111.4 | % | 80.2 | % | ||||||||||
| Acquisition cost ratio |
0.3 | % | 21.4 | % | 16.4 | % | 28.2 | % | 18.6 | % | ||||||||||
| General and administrative expense ratio |
18.1 | % | 10.1 | % | 19.1 | % | 21.0 | % | 13.8 | % | ||||||||||
| Combined ratio |
82.4 | % | 112.9 | % | 99.0 | % | 160.7 | % | 112.5 | % | ||||||||||
| EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT FAVORABLE / (UNFAVORABLE) |
||||||||||||||||||||
| Loss ratio [a] |
13.5 | % | 9.9 | % | 0.0 | % | 0.0 | % | 8.0 | % | ||||||||||
| NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT UNDERWRITING RATIOS |
||||||||||||||||||||
| Loss ratio |
77.4 | % | 91.3 | % | 63.6 | % | 111.4 | % | 88.2 | % | ||||||||||
| Acquisition cost ratio |
0.3 | % | 21.4 | % | 16.4 | % | 28.2 | % | 18.6 | % | ||||||||||
| General and administrative expense ratio |
18.1 | % | 10.1 | % | 19.1 | % | 21.0 | % | 13.8 | % | ||||||||||
| Combined ratio |
95.9 | % | 122.8 | % | 99.0 | % | 160.7 | % | 120.5 | % | ||||||||||
| [a] | Prior accident year reserve development excludes changes in reserves resulting from changes in premium estimates on prior years’ contracts. |
CONSOLIDATED UNDERWRITING RATIOS - THREE MONTHS ENDED MARCH 31, 2010 (Unaudited)
| Property & Casualty | ||||||||||||||||||||||||
| Insurance [c] | Reinsurance | U.S. Specialty [c] | Alterra at Lloyd’s | Total | Historical Harbor Point [b] |
|||||||||||||||||||
| UNDERWRITING RATIOS |
||||||||||||||||||||||||
| Loss ratio |
74.5 | % | 62.7 | % | 62.3 | % | 54.2 | % | 64.6 | % | 63.7 | % | ||||||||||||
| Acquisition cost ratio |
(0.6 | %) | 18.8 | % | 12.0 | % | 19.2 | % | 12.5 | % | 20.6 | % | ||||||||||||
| General and administrative expense ratio |
12.9 | % | 11.2 | % | 24.4 | % | 9.0 | % | 13.5 | % | 5.9 | % | ||||||||||||
| Combined ratio |
86.9 | % | 92.7 | % | 98.7 | % | 82.5 | % | 90.5 | % | 90.2 | % | ||||||||||||
| EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT FAVORABLE / (UNFAVORABLE) |
||||||||||||||||||||||||
| Loss ratio [a] |
11.0 | % | 11.6 | % | 2.2 | % | 5.5 | % | 8.8 | % | 5.2 | % | ||||||||||||
| NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT UNDERWRITING RATIOS |
||||||||||||||||||||||||
| Loss ratio |
85.5 | % | 74.3 | % | 64.5 | % | 59.7 | % | 73.4 | % | 68.9 | % | ||||||||||||
| Acquisition cost ratio |
(0.6 | %) | 18.8 | % | 12.0 | % | 19.2 | % | 12.5 | % | 20.6 | % | ||||||||||||
| General and administrative expense ratio |
12.9 | % | 11.2 | % | 24.4 | % | 9.0 | % | 13.5 | % | 5.9 | % | ||||||||||||
| Combined ratio |
97.9 | % | 104.3 | % | 100.9 | % | 88.0 | % | 99.3 | % | 95.4 | % | ||||||||||||
| [a] | Prior accident year reserve development excludes changes in reserves resulting from changes in premium estimates on prior years’ contracts. |
| [b] | Provided for informational purposes only. |
| [c] | Insurance and U.S. Specialty segment amounts for the comparative 2010 period have been reclassified to conform with the current period’s presentation. |
Percentage totals may not add due to rounding.
8
ALTERRA CAPITAL HOLDINGS LIMITED
INSURANCE SEGMENT DATA (Unaudited)
(Expressed in thousands of United States Dollars)
| FOR THE QUARTERS ENDED | ||||||||||||||||||||||||
| Mar. 31, 2011 |
Dec. 31, 2010 [a] |
Sept. 30, 2010 [a] |
June 30, 2010 [a] |
Mar. 31, 2010 [a] |
Mar. 31, 2009 [a] |
|||||||||||||||||||
| Gross premiums written |
$ | 71,272 | $ | 113,236 | $ | 77,944 | $ | 139,026 | $ | 69,406 | $ | 91,006 | ||||||||||||
| Reinsurance premiums ceded |
(43,246 | ) | (56,728 | ) | (36,875 | ) | (47,437 | ) | (39,651 | ) | (56,220 | ) | ||||||||||||
| Net premiums written |
$ | 28,026 | $ | 56,508 | $ | 41,069 | $ | 91,589 | $ | 29,755 | $ | 34,786 | ||||||||||||
| Earned premiums |
$ | 98,944 | $ | 106,169 | $ | 102,640 | $ | 104,841 | $ | 101,746 | $ | 105,640 | ||||||||||||
| Earned premiums ceded |
(44,730 | ) | (43,847 | ) | (42,796 | ) | (45,211 | ) | (48,830 | ) | (53,178 | ) | ||||||||||||
| Net premiums earned |
54,214 | 62,322 | 59,844 | 59,630 | 52,916 | 52,462 | ||||||||||||||||||
| Net losses and loss expenses |
(34,664 | ) | (35,687 | ) | (26,679 | ) | (38,296 | ) | (39,446 | ) | (38,158 | ) | ||||||||||||
| Acquisition costs |
(184 | ) | (1,765 | ) | (1,382 | ) | (821 | ) | 317 | 1,367 | ||||||||||||||
| General and administrative expenses |
(9,825 | ) | (11,812 | ) | (7,717 | ) | (8,132 | ) | (6,847 | ) | (6,074 | ) | ||||||||||||
| Other income |
812 | 68 | 1,108 | 97 | (6 | ) | 1,216 | |||||||||||||||||
| Underwriting income |
$ | 10,353 | $ | 13,126 | $ | 25,174 | $ | 12,478 | $ | 6,934 | $ | 10,813 | ||||||||||||
| Loss ratio |
63.9 | % | 57.3 | % | 44.6 | % | 64.2 | % | 74.5 | % | 72.7 | % | ||||||||||||
| Acquisition cost ratio |
0.3 | % | 2.8 | % | 2.3 | % | 1.4 | % | (0.6 | %) | (2.6 | %) | ||||||||||||
| General and administrative expense ratio |
18.1 | % | 18.9 | % | 12.9 | % | 13.6 | % | 12.9 | % | 11.6 | % | ||||||||||||
| Combined ratio |
82.4 | % | 79.0 | % | 59.8 | % | 79.2 | % | 86.9 | % | 81.7 | % | ||||||||||||
| [a] | Insurance and U.S. Specialty segment amounts for comparative periods have been reclassified to conform with the current period’s presentation. |
See page 25 for additional information.
9
ALTERRA CAPITAL HOLDINGS LIMITED
REINSURANCE SEGMENT DATA (Unaudited)
(Expressed in thousands of United States Dollars)
| FOR THE QUARTERS ENDED | ||||||||||||||||||||||||
| Mar. 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 [a] |
Mar. 31, 2010 |
Mar. 31, 2009 |
|||||||||||||||||||
| Gross premiums written |
$ | 375,020 | $ | 110,620 | $ | 124,004 | $ | 119,578 | $ | 154,851 | $ | 232,982 | ||||||||||||
| Reinsurance premiums ceded |
(37,317 | ) | (2,908 | ) | (2,524 | ) | (13,348 | ) | (45,351 | ) | (51,383 | ) | ||||||||||||
| Net premiums written |
$ | 337,703 | $ | 107,712 | $ | 121,480 | $ | 106,230 | $ | 109,500 | $ | 181,599 | ||||||||||||
| Earned premiums |
$ | 249,901 | $ | 215,261 | $ | 213,510 | $ | 174,729 | $ | 95,743 | $ | 123,986 | ||||||||||||
| Earned premiums ceded |
(20,195 | ) | (21,082 | ) | (15,533 | ) | (19,054 | ) | (15,958 | ) | (26,519 | ) | ||||||||||||
| Net premiums earned |
229,706 | 194,179 | 197,977 | 155,675 | 79,785 | 97,467 | ||||||||||||||||||
| Net losses and loss expenses |
(186,885 | ) | (97,639 | ) | (117,671 | ) | (82,441 | ) | (50,065 | ) | (66,215 | ) | ||||||||||||
| Acquisition costs |
(49,143 | ) | (38,406 | ) | (45,069 | ) | (32,673 | ) | (14,966 | ) | (17,463 | ) | ||||||||||||
| General and administrative expenses |
(23,258 | ) | (24,714 | ) | (17,580 | ) | (14,820 | ) | (8,959 | ) | (7,524 | ) | ||||||||||||
| Other income |
— | (216 | ) | 61 | 155 | — | — | |||||||||||||||||
| Underwriting income (loss) |
$ | (29,580 | ) | $ | 33,204 | $ | 17,718 | $ | 25,896 | $ | 5,795 | $ | 6,265 | |||||||||||
| Loss ratio |
81.4 | % | 50.3 | % | 59.4 | % | 53.0 | % | 62.7 | % | 67.9 | % | ||||||||||||
| Acquisition cost ratio |
21.4 | % | 19.8 | % | 22.8 | % | 21.0 | % | 18.8 | % | 18.0 | % | ||||||||||||
| General and administrative expense ratio |
10.1 | % | 12.7 | % | 8.9 | % | 9.5 | % | 11.2 | % | 7.7 | % | ||||||||||||
| Combined ratio |
112.9 | % | 82.8 | % | 91.1 | % | 83.5 | % | 92.7 | % | 93.6 | % | ||||||||||||
| [a] | Includes the results for Harbor Point from May 12, 2010. |
10
ALTERRA CAPITAL HOLDINGS LIMITED
PRO FORMA ALTERRA REINSURANCE SEGMENT SELECTED FINANCIAL INFORMATION [a] (Unaudited)
(Expressed in thousands of United States Dollars)
| FOR THE QUARTERS ENDED | ||||||||||||||||||||||||||||||||
| Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
Mar. 31, 2010 |
Dec. 31, 2009 |
Sept. 30, 2009 |
June 30, 2009 |
Mar. 31, 2009 |
|||||||||||||||||||||||||
| Gross premiums written |
$ | 110,620 | $ | 124,004 | $ | 197,146 | $ | 460,618 | $ | 125,447 | $ | 210,882 | $ | 262,938 | $ | 461,141 | ||||||||||||||||
| Net premiums earned |
194,179 | 197,977 | 226,291 | 215,050 | 230,516 | 238,953 | 221,120 | 220,103 | ||||||||||||||||||||||||
| Net losses and loss expenses |
97,639 | 117,671 | 136,158 | 129,727 | 108,941 | 113,625 | 118,613 | 115,706 | ||||||||||||||||||||||||
| Acquisition costs |
38,406 | 45,069 | 47,179 | 42,689 | 46,708 | 50,167 | 42,586 | 43,280 | ||||||||||||||||||||||||
| General and administrative expenses |
24,714 | 17,580 | 16,527 | 16,824 | 23,680 | 19,726 | 18,520 | 19,201 | ||||||||||||||||||||||||
| Loss ratio |
50.3 | % | 59.4 | % | 60.2 | % | 60.3 | % | 47.3 | % | 47.6 | % | 53.6 | % | 52.6 | % | ||||||||||||||||
| Acquisition cost ratio |
19.8 | % | 22.8 | % | 20.8 | % | 19.9 | % | 20.3 | % | 21.0 | % | 19.3 | % | 19.7 | % | ||||||||||||||||
| General and administrative expense ratio |
12.7 | % | 8.9 | % | 7.3 | % | 7.8 | % | 10.2 | % | 8.2 | % | 8.4 | % | 8.7 | % | ||||||||||||||||
| Combined ratio |
82.8 | % | 91.1 | % | 88.3 | % | 88.0 | % | 77.8 | % | 76.8 | % | 81.3 | % | 81.0 | % | ||||||||||||||||
| [a] | This information is based on historical Alterra reinsurance segment financial information adjusted to include Harbor Point historical financial information as though the amalgamation with Harbor Point had occurred on January 1, 2009. The financial information also includes adjustments to eliminate any intercompany transactions and to reflect the amortization of certain acquisition accounting fair value adjustments. |
The pro forma information is provided for informational purposes only. The pro forma information does not necessarily represent results that would have occurred if the amalgamation had occurred on January 1, 2009, nor is it necessarily indicative of future results.
11
ALTERRA CAPITAL HOLDINGS LIMITED
U.S. SPECIALTY SEGMENT DATA (Unaudited)
(Expressed in thousands of United States Dollars)
| FOR THE QUARTERS ENDED | ||||||||||||||||||||||||
| Mar. 31, 2011 |
Dec. 31, 2010 [a] |
Sept. 30, 2010 [a] |
June 30, 2010 [a] |
Mar. 31, 2010 [a] |
Mar. 31, 2009 [a] |
|||||||||||||||||||
| Gross premiums written |
$ | 70,388 | $ | 65,625 | $ | 64,198 | $ | 90,773 | $ | 73,902 | $ | 65,509 | ||||||||||||
| Reinsurance premiums ceded |
(33,595 | ) | (15,956 | ) | (18,713 | ) | (5,672 | ) | (48,152 | ) | (39,382 | ) | ||||||||||||
| Net premiums written |
$ | 36,793 | $ | 49,669 | $ | 45,485 | $ | 85,101 | $ | 25,750 | $ | 26,127 | ||||||||||||
| Earned premiums |
$ | 73,177 | $ | 74,683 | $ | 73,337 | $ | 71,065 | $ | 69,185 | $ | 50,913 | ||||||||||||
| Earned premiums ceded |
(23,850 | ) | (26,140 | ) | (26,071 | ) | (27,053 | ) | (38,393 | ) | (31,926 | ) | ||||||||||||
| Net premiums earned |
49,327 | 48,543 | 47,266 | 44,012 | 30,792 | 18,987 | ||||||||||||||||||
| Net losses and loss expenses |
(31,375 | ) | (31,878 | ) | (29,295 | ) | (26,683 | ) | (19,196 | ) | (10,391 | ) | ||||||||||||
| Acquisition costs |
(8,066 | ) | (8,618 | ) | (6,763 | ) | (9,111 | ) | (3,682 | ) | (1,189 | ) | ||||||||||||
| General and administrative expenses |
(9,397 | ) | (7,552 | ) | (8,693 | ) | (6,355 | ) | (7,522 | ) | (6,811 | ) | ||||||||||||
| Other income |
— | — | — | — | — | (221 | ) | |||||||||||||||||
| Underwriting income |
$ | 489 | $ | 495 | $ | 2,515 | $ | 1,863 | $ | 392 | $ | 375 | ||||||||||||
| Loss ratio |
63.6 | % | 65.7 | % | 62.0 | % | 60.6 | % | 62.3 | % | 54.7 | % | ||||||||||||
| Acquisition cost ratio |
16.4 | % | 17.8 | % | 14.3 | % | 20.7 | % | 12.0 | % | 6.3 | % | ||||||||||||
| General and administrative expense ratio |
19.1 | % | 15.5 | % | 18.4 | % | 14.5 | % | 24.4 | % | 35.9 | % | ||||||||||||
| Combined ratio |
99.0 | % | 99.0 | % | 94.7 | % | 95.8 | % | 98.7 | % | 96.9 | % | ||||||||||||
| [a] | Insurance and U.S. Specialty segment amounts for comparative periods have been reclassified to conform with the current period’s presentation. See page 25 for additional information. |
12
ALTERRA CAPITAL HOLDINGS LIMITED
ALTERRA AT LLOYD’S SEGMENT DATA (Unaudited)
(Expressed in thousands of United States Dollars)
| FOR THE QUARTERS ENDED | ||||||||||||||||||||||||
| Mar. 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
Mar. 31, 2010 |
Mar. 31, 2009 |
|||||||||||||||||||
| Gross premiums written |
$ | 110,733 | $ | 23,980 | $ | 57,734 | $ | 48,802 | $ | 72,117 | $ | 44,179 | ||||||||||||
| Reinsurance premiums ceded |
(23,179 | ) | (1,859 | ) | (2,397 | ) | (13,233 | ) | (19,959 | ) | (17,301 | ) | ||||||||||||
| Net premiums written |
$ | 87,554 | $ | 22,121 | $ | 55,337 | $ | 35,569 | $ | 52,158 | $ | 26,878 | ||||||||||||
| Earned premiums |
$ | 66,805 | $ | 47,633 | $ | 45,424 | $ | 40,286 | $ | 37,460 | $ | 28,246 | ||||||||||||
| Earned premiums ceded |
(20,580 | ) | (11,894 | ) | (9,310 | ) | (7,120 | ) | (7,469 | ) | (7,384 | ) | ||||||||||||
| Net premiums earned |
46,225 | 35,739 | 36,114 | 33,166 | 29,991 | 20,862 | ||||||||||||||||||
| Net losses and loss expenses |
(51,482 | ) | (13,843 | ) | (17,367 | ) | (12,397 | ) | (16,258 | ) | (9,959 | ) | ||||||||||||
| Acquisition costs |
(13,056 | ) | (4,853 | ) | (7,474 | ) | (6,070 | ) | (5,767 | ) | (3,152 | ) | ||||||||||||
| General and administrative expenses |
(9,723 | ) | (12,186 | ) | (7,806 | ) | (5,826 | ) | (2,713 | ) | (4,721 | ) | ||||||||||||
| Other income |
215 | 2,006 | 177 | 173 | 178 | 72 | ||||||||||||||||||
| Underwriting (loss) income |
$ | (27,821 | ) | $ | 6,863 | $ | 3,644 | $ | 9,046 | $ | 5,431 | $ | 3,102 | |||||||||||
| Loss ratio |
111.4 | % | 38.7 | % | 48.1 | % | 37.4 | % | 54.2 | % | 47.7 | % | ||||||||||||
| Acquisition cost ratio |
28.2 | % | 13.6 | % | 20.7 | % | 18.3 | % | 19.2 | % | 15.1 | % | ||||||||||||
| General and administrative expense ratio |
21.0 | % | 34.1 | % | 21.6 | % | 17.5 | % | 9.0 | % | 22.7 | % | ||||||||||||
| Combined ratio |
160.7 | % | 86.4 | % | 90.4 | % | 73.2 | % | 82.5 | % | 85.5 | % | ||||||||||||
13
ALTERRA CAPITAL HOLDINGS LIMITED
LIFE AND ANNUITY REINSURANCE SEGMENT DATA (Unaudited)
(Expressed in thousands of United States Dollars)
| FOR THE QUARTERS ENDED | ||||||||||||||||||||||||
| Mar. 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
Mar. 31, 2010 |
Mar. 31, 2009 |
|||||||||||||||||||
| Gross premiums written |
$ | 435 | $ | 1,937 | $ | 1,333 | $ | 802 | $ | 863 | $ | 597 | ||||||||||||
| Reinsurance premiums ceded |
(20 | ) | (166 | ) | (102 | ) | (25 | ) | (107 | ) | (93 | ) | ||||||||||||
| Net premiums written |
$ | 415 | $ | 1,771 | $ | 1,231 | $ | 777 | $ | 756 | $ | 504 | ||||||||||||
| Earned premiums |
$ | 435 | $ | 1,937 | $ | 1,333 | $ | 802 | $ | 863 | $ | 597 | ||||||||||||
| Earned premiums ceded |
(20 | ) | (166 | ) | (102 | ) | (25 | ) | (107 | ) | (93 | ) | ||||||||||||
| Net premiums earned |
415 | 1,771 | 1,231 | 777 | 756 | 504 | ||||||||||||||||||
| Net investment income |
12,343 | 12,084 | 12,182 | 12,420 | 13,099 | 11,566 | ||||||||||||||||||
| Net realized and unrealized gains (losses) on investments |
2,807 | 3,981 | 3,321 | (1,860 | ) | 5,916 | 7,868 | |||||||||||||||||
| Other income |
— | 357 | (43 | ) | — | (28 | ) | — | ||||||||||||||||
| Claims and policy benefits |
(14,710 | ) | (18,551 | ) | (15,060 | ) | (13,943 | ) | (17,659 | ) | (14,332 | ) | ||||||||||||
| Acquisition costs |
(159 | ) | 79 | (171 | ) | (123 | ) | (146 | ) | (193 | ) | |||||||||||||
| General and administrative expenses |
(177 | ) | (1,088 | ) | (577 | ) | (642 | ) | (657 | ) | (695 | ) | ||||||||||||
| Income (loss) before taxes |
$ | 519 | $ | (1,367 | ) | $ | 883 | $ | (3,371 | ) | $ | 1,281 | $ | 4,718 | ||||||||||
14
ALTERRA CAPITAL HOLDINGS LIMITED
SEGMENT GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS (Unaudited)
(Expressed in thousands of United States Dollars)
| FOR THE QUARTERS ENDED | ||||||||||||||||||||||||||||
| Mar. 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
Mar. 31, 2010 |
Mar. 31, 2009 |
|||||||||||||||||||||||
| Gross Premiums Written by Type of Risk: |
||||||||||||||||||||||||||||
| Property & Casualty: |
||||||||||||||||||||||||||||
| Insurance [a]: |
||||||||||||||||||||||||||||
| Aviation |
S | $ | 1,416 | $ | 22,677 | $ | 8,247 | $ | 6,615 | $ | 2,349 | $ | 6,185 | |||||||||||||||
| Excess Liability |
L | 27,387 | 27,361 | 21,579 | 38,001 | 26,633 | 37,972 | |||||||||||||||||||||
| Professional Liability |
L | 26,796 | 51,199 | 37,151 | 67,127 | 27,573 | 32,441 | |||||||||||||||||||||
| Property |
S | 15,673 | 11,999 | 10,967 | 27,283 | 12,851 | 14,408 | |||||||||||||||||||||
| 71,272 | 113,236 | 77,944 | 139,026 | 69,406 | 91,006 | |||||||||||||||||||||||
| Reinsurance [b]: |
||||||||||||||||||||||||||||
| Agriculture |
S | $ | 20,785 | $ | (1,406 | ) | (2,665 | ) | (2,513 | ) | 35,806 | 87,666 | ||||||||||||||||
| Auto |
S | 15,160 | 22,585 | 10,251 | 66 | — | — | |||||||||||||||||||||
| Aviation |
S | 904 | 2,596 | 15,313 | 8,561 | 4,822 | 4,159 | |||||||||||||||||||||
| Credit/ Surety |
S | 24,426 | 1,118 | 2,569 | (1,491 | ) | — | — | ||||||||||||||||||||
| General Casualty |
L | 16,247 | 17,658 | 18,505 | (857 | ) | 13,051 | 18,141 | ||||||||||||||||||||
| Marine & Energy |
S | 17,093 | (1,549 | ) | 8,826 | 5,004 | 4,100 | 9,078 | ||||||||||||||||||||
| Medical Malpractice |
L | 17,582 | 19,554 | (3,131 | ) | 7,813 | 27,155 | 36,393 | ||||||||||||||||||||
| Other |
S | 1,759 | 520 | 1,183 | 92 | 989 | 1,866 | |||||||||||||||||||||
| Professional Liability |
L | 59,684 | 28,538 | 37,965 | 32,005 | 11,919 | 9,711 | |||||||||||||||||||||
| Property |
S | 149,874 | 6,296 | 34,859 | 61,058 | 45,933 | 42,181 | |||||||||||||||||||||
| Whole Account |
S/L | 35,070 | 426 | (232 | ) | 2,362 | 2,573 | 4,375 | ||||||||||||||||||||
| Workers’ Compensation |
L | 16,436 | 14,284 | 561 | 7,478 | 8,503 | 19,412 | |||||||||||||||||||||
| 375,020 | 110,620 | 124,004 | 119,578 | 154,851 | 232,982 | |||||||||||||||||||||||
| U.S. Specialty [a]: |
||||||||||||||||||||||||||||
| General Liability |
L | $ | 17,883 | $ | 19,914 | 18,371 | 22,822 | 20,029 | 15,619 | |||||||||||||||||||
| Marine |
S | 17,109 | 17,758 | 15,637 | 17,996 | 16,063 | 14,781 | |||||||||||||||||||||
| Professional Liability |
L | 4,355 | (534 | ) | 3,135 | 1,756 | 2,246 | — | ||||||||||||||||||||
| Property |
S | 31,041 | 28,487 | 27,055 | 48,199 | 35,564 | 35,109 | |||||||||||||||||||||
| 70,388 | 65,625 | 64,198 | 90,773 | 73,902 | 65,509 | |||||||||||||||||||||||
| Alterra at Lloyd’s: |
||||||||||||||||||||||||||||
| Accident & Health |
S | 13,544 | $ | 5,570 | 5,919 | 6,022 | 13,410 | 12,410 | ||||||||||||||||||||
| Aviation |
S | 1,767 | 5,224 | 3,946 | 2,565 | 4,403 | — | |||||||||||||||||||||
| Financial Institutions |
L | 9,036 | 384 | 8,130 | 4,846 | 6,088 | 3,824 | |||||||||||||||||||||
| International Casualty |
L | 33,860 | 2,213 | 4,095 | 6,182 | 13,684 | — | |||||||||||||||||||||
| Professional Liability |
L | 7,922 | 4,204 | 4,330 | 4,161 | 6,896 | 2,785 | |||||||||||||||||||||
| Property |
S | 44,623 | 5,946 | 26,945 | 25,026 | 27,636 | 25,160 | |||||||||||||||||||||
| Surety |
S | (19 | ) | 439 | 4,369 | — | — | — | ||||||||||||||||||||
| 110,733 | 23,980 | 57,734 | 48,802 | 72,117 | 44,179 | |||||||||||||||||||||||
| Aggregate Property & Casualty |
$ | 627,413 | $ | 313,461 | $ | 323,880 | $ | 398,179 | $ | 370,276 | $ | 433,676 | ||||||||||||||||
| Life & Annuity: |
||||||||||||||||||||||||||||
| Annuity |
$ | 336 | $ | 1,129 | $ | — | $ | 6 | $ | — | $ | — | ||||||||||||||||
| Life |
99 | 808 | 1,333 | 796 | 863 | 597 | ||||||||||||||||||||||
| Aggregate Life & Annuity |
435 | 1,937 | 1,333 | 802 | 863 | 597 | ||||||||||||||||||||||
| Aggregate Property & Casualty and Life & Annuity |
$ | 627,848 | $ | 315,398 | $ | 325,213 | $ | 398,981 | $ | 371,139 | $ | 434,273 | ||||||||||||||||
| [a] | Insurance and U.S. specialty segment amounts for comparative periods have been reclassified to conform with the current period’s presentation. |
| [b] | Includes the results for Harbor Point from May 12, 2010. |
| S = Short tail lines |
$ | 372,690 | $ | 128,473 | $ | 173,305 | $ | 205,664 | $ | 205,213 | $ | 255,191 | ||||||||||||
| L = Long tail lines |
254,723 | 184,988 | 150,575 | 192,515 | 165,063 | 178,486 | ||||||||||||||||||
| Aggregate Property & Casualty |
$ | 627,413 | $ | 313,461 | $ | 323,880 | $ | 398,179 | $ | 370,276 | $ | 433,676 | ||||||||||||
15
ALTERRA CAPITAL HOLDINGS LIMITED
PRO FORMA ALTERRA REINSURANCE SEGMENT GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS [a] (Unaudited)
(Expressed in thousands of United States Dollars)
| FOR THE QUARTERS ENDED | ||||||||||||||||||||||||||||||||||||
| Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
Mar. 31, 2010 |
Dec. 31, 2009 |
Sept. 30, 2009 |
June 30, 2009 |
Mar. 31, 2009 |
|||||||||||||||||||||||||||||
| Gross Premiums Written by Type of Risk: |
||||||||||||||||||||||||||||||||||||
| Agriculture |
S | $ | (1,406 | ) | $ | (2,665 | ) | $ | (4,643 | ) | $ | 55,944 | $ | 2,153 | $ | (96 | ) | $ | (262 | ) | $ | 91,196 | ||||||||||||||
| Auto |
S | 22,585 | 10,251 | 14,359 | 18,063 | 19,531 | 12,828 | 11,288 | 15,148 | |||||||||||||||||||||||||||
| Aviation |
S | 2,596 | 15,313 | 8,586 | 6,191 | 9,395 | 18,154 | 10,760 | 4,509 | |||||||||||||||||||||||||||
| Credit/ Surety |
S | 1,118 | 2,569 | 1,530 | 23,555 | 9,058 | 369 | 2,440 | 8,828 | |||||||||||||||||||||||||||
| General Casualty |
L | 17,658 | 18,505 | 6,724 | 42,398 | 15,607 | 31,167 | 10,225 | 36,892 | |||||||||||||||||||||||||||
| Marine & Energy |
S | (1,549 | ) | 8,826 | 5,220 | 21,128 | 4,033 | 8,565 | (3,731 | ) | 37,799 | |||||||||||||||||||||||||
| Medical Malpractice |
L | 19,554 | (3,131 | ) | 6,424 | 33,804 | 11,093 | 7,077 | 21,783 | 36,417 | ||||||||||||||||||||||||||
| Other |
S | 520 | 1,183 | 294 | 5,664 | 168 | (57 | ) | 485 | 3,011 | ||||||||||||||||||||||||||
| Professional Liability |
L | 28,538 | 37,965 | 51,615 | 55,812 | 37,407 | 60,373 | 53,705 | 50,629 | |||||||||||||||||||||||||||
| Property |
S | 6,296 | 34,859 | 96,745 | 138,958 | 2,260 | 34,240 | 118,581 | 142,118 | |||||||||||||||||||||||||||
| Whole Account |
S/L | 426 | (232 | ) | 3,095 | 47,135 | 6,578 | 4,569 | 18,503 | 5,369 | ||||||||||||||||||||||||||
| Workers’ Compensation |
L | 14,284 | 561 | 7,197 | 11,966 | 8,164 | 33,693 | 19,161 | 29,225 | |||||||||||||||||||||||||||
| Aggregate Pro Forma Reinsurance Segment |
$ | 110,620 | $ | 124,004 | $ | 197,146 | $ | 460,618 | $ | 125,447 | $ | 210,882 | $ | 262,938 | $ | 461,141 | ||||||||||||||||||||
| [a] | This information is based on historical Alterra reinsurance segment gross premiums written adjusted to include Harbor Point historical gross premiums written as though the amalgamation with Harbor Point had occurred on January 1, 2009. The financial information also includes adjustments to eliminate any intercompany transactions. |
The pro forma information is provided for informational purposes only. The pro forma information does not necessarily represent results that would have occurred if the amalgamation with Harbor Point had occurred on January 1, 2009, nor is it necessarily indicative of future results.
16
ALTERRA CAPITAL HOLDINGS LIMITED
INVESTMENT PORTFOLIO (Unaudited)
(Expressed in thousands of United States Dollars)
| Carrying Value | Fair Value | |||||||||||||||||||||||||||||||
| Type of Investment |
As
of Mar. 31, 2011 |
Investment Distribution |
As
of Dec. 31, 2010 |
Investment Distribution |
As
of Mar. 31, 2011 |
Investment Distribution |
As of Dec. 31, 2010 |
Investment Distribution |
||||||||||||||||||||||||
| Cash and cash equivalents |
$ | 1,001,051 | 12.8 | % | $ | 905,606 | 11.5 | % | $ | 1,001,051 | 12.7 | % | $ | 905,606 | 11.4 | % | ||||||||||||||||
| U.S. government and agencies |
829,036 | 10.6 | % | 995,546 | 12.7 | % | 829,036 | 10.5 | % | 995,546 | 12.5 | % | ||||||||||||||||||||
| Non-U.S. governments |
176,497 | 2.2 | % | 79,111 | 1.0 | % | 176,497 | 2.2 | % | 79,111 | 1.0 | % | ||||||||||||||||||||
| Corporate securities |
2,654,351 | 33.8 | % | 2,735,366 | 34.8 | % | 2,654,351 | 33.6 | % | 2,735,366 | 34.5 | % | ||||||||||||||||||||
| Municipal securities |
196,027 | 2.5 | % | 238,014 | 3.0 | % | 196,027 | 2.5 | % | 238,014 | 3.0 | % | ||||||||||||||||||||
| Asset-backed securities |
114,729 | 1.5 | % | 86,937 | 1.1 | % | 114,729 | 1.5 | % | 86,937 | 1.1 | % | ||||||||||||||||||||
| Residential mortgage-backed securities |
1,178,989 | 15.0 | % | 1,168,390 | 14.9 | % | 1,178,989 | 14.9 | % | 1,168,390 | 14.7 | % | ||||||||||||||||||||
| Commercial mortgage-backed securities |
355,862 | 4.5 | % | 334,151 | 4.3 | % | 355,862 | 4.5 | % | 334,151 | 4.2 | % | ||||||||||||||||||||
| Fixed maturities carried at fair value |
$ | 5,505,491 | 70.2 | % | $ | 5,637,515 | 71.7 | % | $ | 5,505,491 | 69.8 | % | $ | 5,637,515 | 71.0 | % | ||||||||||||||||
| Other investments carried at fair value |
$ | 357,655 | 4.6 | % | $ | 378,128 | 4.8 | % | $ | 357,655 | 4.5 | % | $ | 378,128 | 4.8 | % | ||||||||||||||||
| Total investments carried at fair value |
$ | 6,864,197 | 87.5 | % | $ | 6,921,249 | 88.0 | % | $ | 6,864,197 | 87.0 | % | $ | 6,921,249 | 87.2 | % | ||||||||||||||||
| U.S. government and agencies |
$ | 29,690 | 0.4 | % | $ | 29,687 | 0.4 | % | $ | 29,960 | 0.4 | % | $ | 30,200 | 0.4 | % | ||||||||||||||||
| Non-U.S. governments |
570,559 | 7.3 | % | 538,274 | 6.8 | % | 594,395 | 7.5 | % | 587,053 | 7.4 | % | ||||||||||||||||||||
| Corporate securities |
381,958 | 4.9 | % | 371,143 | 4.7 | % | 400,949 | 5.1 | % | 397,261 | 5.0 | % | ||||||||||||||||||||
| Asset-backed securities |
1,000 | 0.0 | % | 1,000 | 0.0 | % | 998 | 0.0 | % | 998 | 0.0 | % | ||||||||||||||||||||
| Fixed maturities carried at amortized cost |
$ | 983,207 | 12.5 | % | $ | 940,104 | 12.0 | % | $ | 1,026,302 | 13.0 | % | $ | 1,015,512 | 12.8 | % | ||||||||||||||||
| Total invested assets |
$ | 7,847,404 | 100.0 | % | $ | 7,861,353 | 100.0 | % | $ | 7,890,499 | 100.0 | % | $ | 7,936,761 | 100.0 | % | ||||||||||||||||
As of March 31, 2011, the weighted average book yield of the cash and fixed maturities portfolio was 3.38%, and the weighted average duration was 4.1 years.
| Credit Ratings |
As
of Mar. 31, 2011 |
Ratings Distribution |
As
of Dec. 31, 2010 |
Ratings Distribution |
As
of Mar. 31, 2011 |
Ratings Distribution |
As of Dec. 31, 2010 |
Ratings Distribution |
||||||||||||||||||||||||
| U.S. government and agencies [a] |
$ | 1,914,424 | 29.5 | % | $ | 2,060,116 | 31.3 | % | $ | 1,914,424 | 29.3 | % | $ | 2,060,116 | 31.0 | % | ||||||||||||||||
| AAA |
1,111,873 | 17.1 | % | 1,076,680 | 16.4 | % | 1,111,873 | 17.0 | % | 1,076,680 | 16.2 | % | ||||||||||||||||||||
| AA |
652,294 | 10.1 | % | 657,867 | 10.0 | % | 652,294 | 10.0 | % | 657,867 | 9.9 | % | ||||||||||||||||||||
| A |
1,323,594 | 20.4 | % | 1,353,945 | 20.6 | % | 1,323,594 | 20.3 | % | 1,353,945 | 20.4 | % | ||||||||||||||||||||
| BBB |
248,544 | 3.8 | % | 226,849 | 3.4 | % | 248,544 | 3.8 | % | 226,849 | 3.4 | % | ||||||||||||||||||||
| BB |
31,979 | 0.5 | % | 32,021 | 0.5 | % | 31,979 | 0.5 | % | 32,021 | 0.5 | % | ||||||||||||||||||||
| B |
120,738 | 1.9 | % | 138,703 | 2.1 | % | 120,738 | 1.8 | % | 138,703 | 2.1 | % | ||||||||||||||||||||
| CCC or lower |
49,785 | 0.8 | % | 45,469 | 0.7 | % | 49,785 | 0.8 | % | 45,469 | 0.7 | % | ||||||||||||||||||||
| Not rated |
52,260 | 0.8 | % | 45,865 | 0.7 | % | 52,260 | 0.8 | % | 45,865 | 0.7 | % | ||||||||||||||||||||
| Fixed maturities carried at fair value |
$ | 5,505,491 | 84.8 | % | $ | 5,637,515 | 85.7 | % | $ | 5,505,491 | 84.3 | % | $ | 5,637,515 | 84.7 | % | ||||||||||||||||
| U.S. government and agencies |
29,690 | 0.5 | % | 29,687 | 0.5 | % | 29,960 | 0.5 | % | 30,200 | 0.5 | % | ||||||||||||||||||||
| AAA |
682,948 | 10.5 | % | 641,437 | 9.8 | % | 712,759 | 10.9 | % | 699,598 | 10.5 | % | ||||||||||||||||||||
| AA |
117,084 | 1.8 | % | 113,140 | 1.7 | % | 120,298 | 1.8 | % | 118,276 | 1.8 | % | ||||||||||||||||||||
| A |
139,118 | 2.1 | % | 141,683 | 2.2 | % | 146,744 | 2.2 | % | 151,127 | 2.3 | % | ||||||||||||||||||||
| BBB |
14,367 | 0.2 | % | 12,744 | 0.2 | % | 16,541 | 0.3 | % | 14,764 | 0.2 | % | ||||||||||||||||||||
| Not rated |
— | — | 1,413 | 0.0 | % | — | — | 1,547 | 0.0 | % | ||||||||||||||||||||||
| Fixed maturities carried at amortized cost |
$ | 983,207 | 15.2 | % | $ | 940,104 | 14.3 | % | $ | 1,026,302 | 15.7 | % | $ | 1,015,512 | 15.3 | % | ||||||||||||||||
| Total fixed maturities |
$ | 6,488,698 | 100.0 | % | $ | 6,577,619 | 100.0 | % | $ | 6,531,793 | 100.0 | % | $ | 6,653,027 | 100.0 | % | ||||||||||||||||
| [a] | Included within U.S. government and agencies are agency-issued residential mortgage-backed securities with a fair value of $1,085,388 (December 31, 2010: $1,064,570) |
Percentage totals may not add due to rounding.
| Quarter Ended Mar. 31, 2011 |
Quarter Ended Dec. 31, 2010 |
Quarter Ended Sept. 30, 2010 |
Quarter Ended June 30, 2010 |
Quarter Ended Mar. 31, 2010 |
Quarter Ended Mar. 31, 2009 |
|||||||||||||||||||
| Net investment income |
$ | 57,766 | $ | 61,080 | $ | 59,711 | $ | 53,277 | $ | 48,390 | $ | 40,488 | ||||||||||||
| Realized and unrealized (losses) gains on trading fixed maturities |
(1,827 | ) | (3,893 | ) | 883 | (1,284 | ) | (182 | ) | 467 | ||||||||||||||
| Net realized gains (losses) on available for sale fixed maturities |
3,369 | 5,816 | 6,395 | 2,425 | 838 | (39 | ) | |||||||||||||||||
| Change in fair value of hedge funds |
3,167 | 5,465 | 4,820 | (3,323 | ) | 7,370 | 17,465 | |||||||||||||||||
| Change in fair value of non-hedge fund other investments |
(23,527 | ) | 2,437 | 3,313 | (12,604 | ) | (1,604 | ) | 548 | |||||||||||||||
| Net realized and unrealized (losses) gains on investments |
$ | (18,818 | ) | $ | 9,825 | $ | 15,411 | $ | (14,786 | ) | $ | 6,422 | $ | 18,441 | ||||||||||
| Net impairment losses recognized in earnings |
$ | (1,029 | ) | $ | (1,774 | ) | $ | (151 | ) | $ | (300 | ) | $ | (420 | ) | $ | — | |||||||
17
ALTERRA CAPITAL HOLDINGS LIMITED
INVESTMENT PORTFOLIO (Unaudited)
(Expressed in thousands of United States Dollars)
| As
of Mar. 31, 2011 |
Periodic Rate of Return | |||||||||||||||||||
| Last 3 Months |
Year to Date |
Last 12 months |
Last 60 months* |
|||||||||||||||||
| Cash and fixed maturities |
$ | 7,489,749 | 1.04 | % | 1.04 | % | 4.84 | % | 5.24 | % | ||||||||||
| Convertible arbitrage |
$ | — | 0.00 | % | 0.00 | % | 0.00 | % | 0.66 | % | ||||||||||
| Distressed securities |
34,637 | 0.42 | % | 0.42 | % | 3.61 | % | 5.87 | % | |||||||||||
| Diversified arbitrage |
27,092 | 3.53 | % | 3.53 | % | 13.45 | % | (2.61 | %) | |||||||||||
| Emerging markets |
10,614 | 1.52 | % | 7.62 | % | 4.49 | % | 10.10 | % | |||||||||||
| Event-driven arbitrage |
27,585 | (4.41 | %) | (11.14 | %) | 2.24 | % | 7.84 | % | |||||||||||
| Fixed income arbitrage |
— | 0.00 | % | 0.00 | % | 3.16 | % | 13.18 | % | |||||||||||
| Fund of funds |
43,842 | 2.32 | % | 2.32 | % | 6.84 | % | 1.33 | % | |||||||||||
| Global macro |
50,011 | 0.94 | % | 6.27 | % | 5.76 | % | 7.77 | % | |||||||||||
| Long / short credit |
10,219 | 1.81 | % | 1.81 | % | 5.17 | % | 5.28 | % | |||||||||||
| Long / short equity |
82,615 | 2.95 | % | 2.95 | % | 5.31 | % | 5.77 | % | |||||||||||
| Opportunistic |
1,720 | (35.82 | %) | (35.82 | %) | (37.04 | %) | (19.55 | %) | |||||||||||
| Hedge funds ** |
288,335 | 0.98 | % | 0.98 | % | 3.23 | % | 2.53 | % | |||||||||||
| Catastrophe bonds |
29,349 | |||||||||||||||||||
| Derivatives |
6,723 | |||||||||||||||||||
| Structured deposits |
28,143 | |||||||||||||||||||
| Equity investments |
5,105 | |||||||||||||||||||
| Total other investments |
$ | 357,655 | ||||||||||||||||||
| Total invested assets |
$ | 7,847,404 | ||||||||||||||||||
| Hedge Fund Investment Return Data: |
||||||||||||||||||||
| HFRI Fund of Funds Composite Index [a] |
0.89 | % | 0.89 | % | 5.16 | % | 1.62 | % | ||||||||||||
| Hedge Fund Performance History – 60 months ended March 31, 2011 |
|
|||||||||||||||||||
| Monthly performance | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||
| January |
0.13 | % | 0.79 | % | 2.13 | % | (1.37 | %) | 1.28 | % | ||||||||||||||
| February |
0.57 | % | 0.17 | % | 0.65 | % | 1.83 | % | 1.50 | % | ||||||||||||||
| March |
0.29 | % | 1.02 | % | (0.76 | %) | (2.58 | %) | 1.90 | % | ||||||||||||||
| April |
0.88 | % | (0.84 | %) | (0.13 | %) | 2.30 | % | 1.89 | % | ||||||||||||||
| May |
(0.73 | %) | 2.45 | % | 2.51 | % | 2.59 | % | (1.74 | %) | ||||||||||||||
| June |
(0.83 | %) | 1.53 | % | 0.93 | % | 0.85 | % | (0.66 | %) | ||||||||||||||
| July |
0.36 | % | 1.40 | % | (4.12 | %) | 0.99 | % | (0.71 | %) | ||||||||||||||
| August |
(0.28 | %) | 0.78 | % | (2.14 | %) | (1.62 | %) | 0.02 | % | ||||||||||||||
| September |
1.28 | % | 1.71 | % | (7.31 | %) | 1.85 | % | (2.04 | %) | ||||||||||||||
| October |
0.84 | % | 1.53 | % | (4.85 | %) | 4.15 | % | 1.37 | % | ||||||||||||||
| November |
0.40 | % | 0.35 | % | (1.75 | %) | 0.10 | % | 1.81 | % | ||||||||||||||
| December |
0.31 | % | 0.77 | % | (1.92 | %) | (0.13 | %) | 1.96 | % | ||||||||||||||
| Quarterly performance |
||||||||||||||||||||||||
| Q1 |
0.98 | % | 1.99 | % | 2.00 | % | (2.15 | %) | 4.75 | % | ||||||||||||||
| Q2 |
(0.69 | %) | 3.14 | % | 3.33 | % | 5.83 | % | (0.54 | %) | ||||||||||||||
| Q3 |
1.35 | % | 3.94 | % | (13.03 | %) | 1.18 | % | (2.72 | %) | ||||||||||||||
| Q4 |
1.56 | % | 2.66 | % | (8.31 | %) | 4.11 | % | 5.22 | % | ||||||||||||||
| Period return |
0.98 | % | 4.25 | % | 12.27 | % | (19.38 | %) | 16.78 | % | 1.81 | % | ||||||||||||
Past performance should not be considered to be a reliable indicator of future performance.
| [a] | As reported by HFRI as of April 29, 2011 |
| * | Annualized |
| ** | Net of all fees |
18
ALTERRA CAPITAL HOLDINGS LIMITED
LARGEST 25 CORPORATE HOLDINGS (Unaudited)
(Expressed in thousands of United States Dollars)
| As of Mar. 31, 2011 | ||||||||
| Issuer | Amortized Cost |
Fair Value |
||||||
| European Investment Bank |
59,178 | 61,519 | ||||||
| General Electric |
60,783 | 61,487 | ||||||
| Bank of America Corp |
57,717 | 59,092 | ||||||
| Wells Fargo & Co |
53,600 | 54,469 | ||||||
| JP Morgan Chase & Co |
50,932 | 52,279 | ||||||
| Citigroup Inc |
52,270 | 52,223 | ||||||
| Kreditanstalt Fuer Wiederaufbau |
48,519 | 50,519 | ||||||
| Morgan Stanley |
40,496 | 42,110 | ||||||
| Credit Suisse Group |
39,776 | 40,153 | ||||||
| Lloyds Banking Group plc |
37,449 | 38,412 | ||||||
| Pepsico Inc |
35,999 | 37,100 | ||||||
| Verizon Communications Inc |
34,732 | 35,910 | ||||||
| BP plc |
34,597 | 35,132 | ||||||
| Novartis AG |
33,076 | 34,002 | ||||||
| AT&T Inc |
33,121 | 33,833 | ||||||
| UBS AG |
28,155 | 30,180 | ||||||
| Metlife Inc |
28,346 | 29,025 | ||||||
| Goldman Sachs Group Inc |
27,878 | 28,477 | ||||||
| Pfizer Inc |
26,988 | 25,051 | ||||||
| Berkshire Hathaway Inc |
27,467 | 27,959 | ||||||
| Conoco Philips |
25,619 | 26,715 | ||||||
| Hypo Real Estate Holding AG |
26,080 | 26,317 | ||||||
| Wal-Mart Stores Inc |
23,580 | 23,498 | ||||||
| Barclays plc |
23,803 | 23,323 | ||||||
| Medtronic Inc |
22,556 | 22,768 | ||||||
| $ | 932,716 | $ | 951,553 | |||||
19
ALTERRA CAPITAL HOLDINGS LIMITED
SHAREHOLDER RETURN ANALYSIS (Unaudited)
(Expressed in thousands of United States Dollars, except per share and share amounts)
| FOR THE QUARTERS ENDED | ||||||||
| Mar. 31, 2011 |
Mar. 31, 2010 |
|||||||
| Income and Return on Equity: |
||||||||
| Net (loss) income |
$ | (46,687 | ) | $ | 36,381 | |||
| Net operating (loss) income |
$ | (24,725 | ) | $ | 40,681 | |||
| Average shareholders’ equity |
$ | 2,820,732 | $ | 1,588,875 | ||||
| Annualized return on average shareholders’ equity [a] |
(6.6 | %) | 9.2 | % | ||||
| Annualized net operating return on average shareholders’ equity [a] |
(3.5 | %) | 10.2 | % | ||||
| Book value and dividends per share: |
||||||||
| Diluted book value per share |
$ | 25.34 | $ | 27.86 | ||||
| Dividends paid per share |
$ | 0.12 | $ | 0.10 | ||||
| Change in diluted book value per share |
(2.5 | %) | 1.8 | % | ||||
| Dividend payout ratio [b] |
0.4 | % | 0.4 | % | ||||
| Total return to shareholders [c] |
(2.1 | %) | 2.2 | % | ||||
| [a] | Annualized return on average shareholders’ equity is defined as annualized net income divided by the average of the quarterly average shareholders’ equity balances. |
Annualized net operating return on average shareholders’ equity is defined as annualized net operating income divided by the average of the quarterly average shareholders’ equity balances.
| [b] | Dividend payout ratio is calculated as dividends paid divided by beginning shareholders’ equity. |
| [c] | Total return to shareholders is calculated as the change in diluted book value per share plus the dividend payout ratio. |
20
ALTERRA CAPITAL HOLDINGS LIMITED
EARNINGS PER SHARE INFORMATION (Unaudited)
(Expressed in thousands of United States Dollars, except per share and share amounts)
| FOR THE QUARTERS ENDED | ||||||||
| Mar. 31, 2011 | Mar. 31, 2010 | |||||||
| Net (loss) income available to common shareholders |
$ | (46,687 | ) | $ | 36,381 | |||
| Denominator: |
||||||||
| Weighted average shares - basic |
||||||||
| Outstanding [a] |
106,978,358 | 56,112,672 | ||||||
| Unvested restricted share units |
186,870 | 403,921 | ||||||
| 107,165,228 | 56,516,593 | |||||||
| Share equivalents: |
||||||||
| Warrants |
— | 632,465 | ||||||
| Options |
— | 234,690 | ||||||
| Employee stock purchase plan |
— | — | ||||||
| Non participating restricted shares |
— | — | ||||||
| Weighted average shares - diluted [b] |
107,165,228 | 57,383,748 | ||||||
| Basic earnings per share |
$ | (0.44 | ) | $ | 0.64 | |||
| Diluted earnings per share |
$ | (0.44 | ) | $ | 0.63 | |||
| [a] | Includes weighted average unvested participating restricted shares |
| [b] | Computed using the treasury method. The treasury method assumes that the proceeds received from the exercise of options or warrants will be used to repurchase the Company’s common shares at the average market price during the period of calculation. |
21
ALTERRA CAPITAL HOLDINGS LIMITED
OPERATING INCOME RECONCILIATION (Unaudited)
(Expressed in thousands of United States Dollars, except per share and share amounts)
| FOR THE QUARTERS ENDED | ||||||||
| Mar. 31, 2011 | Mar. 31, 2010 | |||||||
| Before tax |
||||||||
| Net (loss) income |
$ | (49,387 | ) | $ | 38,346 | |||
| Net realized and unrealized losses on non-hedge fund investments, before tax [a] |
23,109 | 1,368 | ||||||
| Foreign exchange gains, before tax |
(878 | ) | (2,452 | ) | ||||
| Merger and acquisition expenses, before tax |
— | 4,744 | ||||||
| Net operating (loss) income |
(27,156 | ) | 42,006 | |||||
| Net of tax |
||||||||
| Net (loss) income |
$ | (46,687 | ) | $ | 36,381 | |||
| Net realized and unrealized losses on non-hedge fund investments, net of tax [a] |
22,602 | 1,236 | ||||||
| Foreign exchange gains, net of tax |
(640 | ) | (1,680 | ) | ||||
| Merger and acquisition expenses, net of tax |
— | 4,744 | ||||||
| Net operating (loss) income |
(24,725 | ) | 40,681 | |||||
| Weighted average shares outstanding: |
||||||||
| Basic |
107,165,228 | 56,516,593 | ||||||
| Diluted |
107,165,228 | 57,383,748 | ||||||
| Basic per share data |
||||||||
| Earnings per share |
$ | (0.44 | ) | $ | 0.64 | |||
| Net realized and unrealized losses on non-hedge fund investments, net of tax [a] |
0.21 | 0.02 | ||||||
| Foreign exchange gains, net of tax |
(0.01 | ) | (0.03 | ) | ||||
| Merger and acquisition expenses, net of tax |
— | 0.09 | ||||||
| Net operating (loss) income per share |
$ | (0.23 | ) | $ | 0.72 | |||
| Diluted per share data |
||||||||
| Diluted earnings per share |
$ | (0.44 | ) | $ | 0.63 | |||
| Net realized and unrealized losses on non-hedge fund investments, net of tax [a] |
0.21 | 0.02 | ||||||
| Foreign exchange gains, net of tax |
(0.01 | ) | (0.03 | ) | ||||
| Merger and acquisition expenses, net of tax |
— | 0.09 | ||||||
| Net operating (loss) income per diluted share |
$ | (0.23 | ) | $ | 0.71 | |||
| [a] | Net realized and unrealized (gains) losses on non-hedge fund investments includes realized and unrealized (gains) losses on trading securities, realized (gains) losses on available for sale securities, net impairment losses recognized in earnings, earnings from equity method investments and changes in fair value of investment derivatives, catastrophe bonds and structured deposits. |
Per share totals may not add due to rounding.
22
ALTERRA CAPITAL HOLDINGS LIMITED
BOOK VALUE PER SHARE (Unaudited)
(Expressed in thousands of United States Dollars, except per share and share amounts)
| As of Mar. 31, 2011 | As of Dec. 31, 2010 | |||||||
| Price per share at period end |
$ | 22.26 | $ | 21.64 | ||||
| Shareholders’ equity |
$ | 2,723,194 | $ | 2,918,270 | ||||
| Goodwill and intangible assets |
$ | 58,585 | $ | 59,076 | ||||
| Tangible book value |
$ | 2,664,609 | $ | 2,859,194 | ||||
| Basic common shares outstanding [a] |
105,733,610 | 110,963,160 | ||||||
| Add: unvested restricted stock units |
247,179 | 167,971 | ||||||
| Add: dilutive impact of warrants outstanding |
1,346,672 | 1,036,442 | ||||||
| Add: dilutive impact of options outstanding |
134,901 | 123,395 | ||||||
| Add: dilutive impact of employee stock purchase plan |
4,016 | — | ||||||
| Diluted shares outstanding [b] |
107,466,378 | 112,290,968 | ||||||
| Basic book value per share |
$ | 25.76 | $ | 26.30 | ||||
| Diluted book value per share |
$ | 25.34 | $ | 25.99 | ||||
| Basic tangible book value per share |
$ | 25.20 | $ | 25.77 | ||||
| Diluted tangible book value per share |
$ | 24.79 | $ | 25.46 | ||||
| [a] | Includes unvested restricted shares |
| [b] | Computed using the treasury method. The treasury method assumes that the proceeds received from the exercise of options or warrants will be used to repurchase the Company’s common shares at the period-end market price. |
23
ALTERRA CAPITAL HOLDINGS LIMITED
REGULATION G
In presenting the Company’s results, management has included and discussed net operating income, net operating income per share, net operating income per diluted share, annualized net operating return on average shareholders’ equity, tangible book value per share and diluted tangible book value per share. These measures are “non-GAAP financial measures” as defined in Regulation G. Management believes that these non-GAAP financial measures, which may be defined differently by other companies, allow for a more complete understanding of the Company’s business. These measures, however, should not be viewed as a substitute for those determined in accordance with U.S. GAAP. The reconciliation of such measures to their respective most directly comparable U.S. GAAP financial measures is presented in the attached financial information in accordance with Regulation G.
Net operating income is defined as net income excluding after-tax net realized and unrealized gains or losses on non- hedge fund investments (this includes net realized and unrealized gains or losses on trading securities, net realized gains or losses on available for sale securities, net impairment losses recognized in earnings, changes in fair value of investment derivatives, catastrophe bonds, structured deposits and earnings from equity method investments), after-tax net foreign exchange gains or losses and after-tax merger and acquisition expenses. Net operating income per share and per diluted share is defined as the net operating income divided by the weighted average common shares or weighted average diluted common shares, respectively. We believe that this non-GAAP measure provides a better indication of management performance as realized and unrealized gains and losses on fixed maturities may fluctuate from period to period and foreign exchange gains and losses are typically outside the control of management. Merger and acquisition expenses are not indicative of expenses fundamental to the business and may fluctuate from period to period.
Annualized net operating return on average shareholders’ equity is defined as annualized net operating income divided by the average of the beginning and ending shareholders’ equity. Tangible book value is defined as shareholders’ equity excluding goodwill and intangible assets. Tangible book value per share and diluted tangible book value per share is defined as the tangible book value divided by the common shares outstanding or diluted common shares outstanding, respectively. These non-GAAP measures allow management to assess how the Company has performed in terms of wealth generated for its shareholders.
24
ALTERRA CAPITAL HOLDINGS LIMITED
Reclassified Segment Information
Selected Financial Information
25
ALTERRA CAPITAL HOLDINGS LIMITED
RECLASSIFICATION OF INSURANCE AND U.S. SPECIALTY SEGMENTS
(Expressed in thousands of United States Dollars)
INSURANCE SEGMENT
| Year ended | Year ended | Year ended | Year ended | |||||||||||||||||||||
| Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2009 | |||||||||||||||||||||
| (Reclassified) | (As previously reported) |
(Reclassified) | (As previously reported) |
|||||||||||||||||||||
| Gross premiums written |
$ | 399,612 | $ | 29,492 | $ | 370,120 | $ | 447,340 | $ | 19,573 | $ | 427,767 | ||||||||||||
| Reinsurance premiums ceded |
(180,691 | ) | (10,083 | ) | (170,608 | ) | (218,633 | ) | (6,550 | ) | (212,083 | ) | ||||||||||||
| Net premiums written |
$ | 218,921 | $ | 19,409 | $ | 199,512 | $ | 228,707 | $ | 13,023 | $ | 215,684 | ||||||||||||
| Earned premiums |
$ | 415,396 | $ | 23,680 | $ | 391,716 | $ | 434,147 | $ | 17,057 | $ | 417,090 | ||||||||||||
| Earned premiums ceded |
(180,684 | ) | (7,561 | ) | (173,123 | ) | (216,687 | ) | (5,560 | ) | (211,127 | ) | ||||||||||||
| Net premiums earned |
234,712 | 16,119 | 218,593 | 217,460 | 11,497 | 205,963 | ||||||||||||||||||
| Net losses and loss expenses |
(140,108 | ) | (11,285 | ) | (128,823 | ) | (140,403 | ) | (8,048 | ) | (132,355 | ) | ||||||||||||
| Acquisition costs |
(3,651 | ) | (270 | ) | (3,381 | ) | 1,206 | (27 | ) | 1,233 | ||||||||||||||
| General and administrative expenses |
(34,508 | ) | (5,893 | ) | (28,615 | ) | (27,927 | ) | (3,304 | ) | (24,623 | ) | ||||||||||||
| Other income |
1,267 | 507 | 760 | 1,620 | 382 | 1,238 | ||||||||||||||||||
| Underwriting income (loss) |
$ | 57,712 | $ | (822 | ) | $ | 58,534 | $ | 51,956 | $ | 500 | $ | 51,456 | |||||||||||
| Loss ratio |
59.7 | % | 58.9 | % | 64.6 | % | 64.3 | % | ||||||||||||||||
| Acquisition cost ratio |
1.6 | % | 1.6 | % | (0.6 | %) | (0.6 | %) | ||||||||||||||||
| General and administrative expense ratio |
14.7 | % | 13.1 | % | 12.9 | % | 11.9 | % | ||||||||||||||||
| Combined ratio |
76.0 | % | 73.6 | % | 76.9 | % | 75.6 | % | ||||||||||||||||
U.S. SPECIALTY SEGMENT
| Year ended | Year ended | Year ended | Year ended | |||||||||||||||||||||
| Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2009 | |||||||||||||||||||||
| (Reclassified) | (As previously reported) |
(Reclassified) | (As previously reported) |
|||||||||||||||||||||
| Gross premiums written |
$ | 294,498 | $ | (29,492 | ) | $ | 323,990 | $ | 265,905 | $ | (19,573 | ) | $ | 285,478 | ||||||||||
| Reinsurance premiums ceded |
(88,493 | ) | 10,083 | (98,576 | ) | (148,546 | ) | 6,550 | (155,096 | ) | ||||||||||||||
| Net premiums written |
$ | 206,005 | $ | (19,409 | ) | $ | 225,414 | $ | 117,359 | $ | (13,023 | ) | $ | 130,382 | ||||||||||
| Earned premiums |
$ | 288,270 | $ | (23,680 | ) | $ | 311,950 | $ | 239,613 | $ | (17,057 | ) | $ | 256,670 | ||||||||||
| Earned premiums ceded |
(117,657 | ) | 7,561 | (125,218 | ) | (149,008 | ) | 5,560 | (154,568 | ) | ||||||||||||||
| Net premiums earned |
170,613 | (16,119 | ) | 186,732 | 90,605 | (11,497 | ) | 102,102 | ||||||||||||||||
| Net losses and loss expenses |
(107,052 | ) | 11,285 | (118,337 | ) | (54,764 | ) | 8,048 | (62,812 | ) | ||||||||||||||
| Acquisition costs |
(28,174 | ) | 270 | (28,444 | ) | (7,474 | ) | 27 | (7,501 | ) | ||||||||||||||
| General and administrative expenses |
(30,122 | ) | 5,893 | (36,015 | ) | (27,925 | ) | 3,304 | (31,229 | ) | ||||||||||||||
| Other income |
— | (507 | ) | 507 | (68 | ) | (382 | ) | 314 | |||||||||||||||
| Underwriting income (loss) |
$ | 5,265 | $ | 822 | $ | 4,443 | $ | 374 | $ | (500 | ) | $ | 874 | |||||||||||
| Loss ratio |
62.7 | % | 63.4 | % | 60.4 | % | 61.5 | % | ||||||||||||||||
| Acquisition cost ratio |
16.5 | % | 15.2 | % | 8.2 | % | 7.3 | % | ||||||||||||||||
| General and administrative expense ratio |
17.7 | % | 19.3 | % | 30.9 | % | 30.7 | % | ||||||||||||||||
| Combined ratio |
96.9 | % | 97.9 | % | 99.5 | % | 99.5 | % | ||||||||||||||||
Effective January 1, 2011, Alterra redefined its Insurance and U.S. Specialty segments based on changes to the internal reporting structure. Insurance business underwritten by Alterra Insurance USA Inc., which was previously reported within the U.S. Specialty segment, has been reclassified to the Insurance segment. Alterra Insurance USA Inc. is a managing general underwriter for Alterra Excess & Surplus Insurance Company and Alterra America Insurance Company, as well as various third party insurance companies, and is Alterra’s principal insurance underwriting platform for retail distribution in the United States. Segment disclosures for comparative periods have been restated to reflect this reclassification.
26
ALTERRA CAPITAL HOLDINGS LIMITED
INSURANCE SEGMENT Results - as Reclassified (Unaudited)
(Expressed in thousands of United States Dollars)
| Dec. 31, 2010 | Sept. 30, 2010 | June 30, 2010 | Mar. 31, 2010 | Dec. 31, 2009 | Sept. 30, 2009 | June 30, 2009 | Mar. 31, 2009 | |||||||||||||||||||||||||
| Gross premiums written |
$ | 113,236 | $ | 77,944 | $ | 139,026 | $ | 69,406 | $ | 126,678 | $ | 90,430 | $ | 139,226 | $ | 91,006 | ||||||||||||||||
| Reinsurance premiums ceded |
(56,728 | ) | (36,875 | ) | (47,437 | ) | (39,651 | ) | (71,053 | ) | (43,388 | ) | (47,972 | ) | (56,220 | ) | ||||||||||||||||
| Net premiums written |
$ | 56,508 | $ | 41,069 | $ | 91,589 | $ | 29,755 | $ | 55,625 | $ | 47,042 | $ | 91,254 | $ | 34,786 | ||||||||||||||||
| Earned premiums |
$ | 106,169 | $ | 102,640 | $ | 104,841 | $ | 101,746 | $ | 114,155 | $ | 108,776 | $ | 105,576 | $ | 105,640 | ||||||||||||||||
| Earned premiums ceded |
(43,847 | ) | (42,796 | ) | (45,211 | ) | (48,830 | ) | (56,043 | ) | (56,337 | ) | (51,129 | ) | (53,178 | ) | ||||||||||||||||
| Net premiums earned |
62,322 | 59,844 | 59,630 | 52,916 | 58,112 | 52,439 | 54,447 | 52,462 | ||||||||||||||||||||||||
| Net losses and loss expenses |
(35,687 | ) | (26,679 | ) | (38,296 | ) | (39,446 | ) | (27,829 | ) | (34,515 | ) | (39,901 | ) | (38,158 | ) | ||||||||||||||||
| Acquisition costs |
(1,765 | ) | (1,382 | ) | (821 | ) | 317 | (60 | ) | (331 | ) | 230 | 1,367 | |||||||||||||||||||
| General and administrative expenses |
(11,812 | ) | (7,717 | ) | (8,132 | ) | (6,847 | ) | (7,046 | ) | (8,114 | ) | (6,693 | ) | (6,074 | ) | ||||||||||||||||
| Other income |
68 | 1,108 | 97 | (6 | ) | 42 | 143 | 219 | 1,216 | |||||||||||||||||||||||
| Underwriting income |
$ | 13,126 | $ | 25,174 | $ | 12,478 | $ | 6,934 | $ | 23,219 | $ | 9,622 | $ | 8,302 | $ | 10,813 | ||||||||||||||||
| Loss ratio |
57.3 | % | 44.6 | % | 64.2 | % | 74.5 | % | 47.9 | % | 65.8 | % | 73.3 | % | 72.7 | % | ||||||||||||||||
| Acquisition cost ratio |
2.8 | % | 2.3 | % | 1.4 | % | (0.6 | %) | 0.1 | % | 0.6 | % | (0.4 | %) | (2.6 | %) | ||||||||||||||||
| General and administrative expense ratio |
18.9 | % | 12.9 | % | 13.6 | % | 13.0 | % | 12.1 | % | 15.5 | % | 12.3 | % | 11.6 | % | ||||||||||||||||
| Combined ratio |
79.0 | % | 59.8 | % | 79.2 | % | 86.9 | % | 60.1 | % | 81.9 | % | 85.2 | % | 81.7 | % | ||||||||||||||||
27
ALTERRA CAPITAL HOLDINGS LIMITED
U.S. SPECIALTY SEGMENT Results - as Reclassified (Unaudited)
(Expressed in thousands of United States Dollars)
| Dec. 31, 2010 | Sept. 30, 2010 | June 30, 2010 | Mar. 31, 2010 | Dec. 31, 2009 | Sept. 30, 2009 | June 30, 2009 | Mar. 31, 2009 | |||||||||||||||||||||||||
| Gross premiums written |
$ | 65,625 | $ | 64,198 | $ | 90,773 | $ | 73,902 | $ | 64,572 | $ | 60,123 | $ | 75,701 | $ | 65,509 | ||||||||||||||||
| Reinsurance premiums ceded |
(15,956 | ) | (18,713 | ) | (5,672 | ) | (48,152 | ) | (31,471 | ) | (24,755 | ) | (52,938 | ) | (39,382 | ) | ||||||||||||||||
| Net premiums written |
$ | 49,669 | $ | 45,485 | $ | 85,101 | $ | 25,750 | $ | 33,101 | $ | 35,368 | $ | 22,763 | $ | 26,127 | ||||||||||||||||
| Earned premiums |
$ | 74,683 | $ | 73,337 | $ | 71,065 | $ | 69,185 | $ | 66,287 | $ | 63,360 | $ | 59,053 | $ | 50,913 | ||||||||||||||||
| Earned premiums ceded |
(26,140 | ) | (26,071 | ) | (27,053 | ) | (38,393 | ) | (40,260 | ) | (35,551 | ) | (41,271 | ) | (31,926 | ) | ||||||||||||||||
| Net premiums earned |
48,543 | 47,266 | 44,012 | 30,792 | 26,027 | 27,809 | 17,782 | 18,987 | ||||||||||||||||||||||||
| Net losses and loss expenses |
(31,878 | ) | (29,295 | ) | (26,683 | ) | (19,196 | ) | (14,809 | ) | (18,507 | ) | (11,057 | ) | (10,391 | ) | ||||||||||||||||
| Acquisition costs |
(8,618 | ) | (6,763 | ) | (9,111 | ) | (3,682 | ) | (1,838 | ) | (1,964 | ) | (2,483 | ) | (1,189 | ) | ||||||||||||||||
| General and administrative expenses |
(7,552 | ) | (8,693 | ) | (6,355 | ) | (7,522 | ) | (9,786 | ) | (6,971 | ) | (4,357 | ) | (6,811 | ) | ||||||||||||||||
| Other income |
— | — | — | — | — | — | 153 | (221 | ) | |||||||||||||||||||||||
| Underwriting income (loss) |
$ | 495 | $ | 2,515 | $ | 1,863 | $ | 392 | $ | (406 | ) | $ | 367 | $ | 38 | $ | 375 | |||||||||||||||
| Loss ratio |
65.7 | % | 62.0 | % | 60.6 | % | 62.3 | % | 56.9 | % | 66.6 | % | 62.2 | % | 54.7 | % | ||||||||||||||||
| Acquisition cost ratio |
17.8 | % | 14.3 | % | 20.7 | % | 12.0 | % | 7.1 | % | 7.1 | % | 14.0 | % | 6.3 | % | ||||||||||||||||
| General and administrative expense ratio |
15.5 | % | 18.4 | % | 14.5 | % | 24.4 | % | 37.6 | % | 25.0 | % | 24.4 | % | 35.9 | % | ||||||||||||||||
| Combined ratio |
99.0 | % | 94.7 | % | 95.8 | % | 98.7 | % | 101.6 | % | 98.7 | % | 100.6 | % | 96.9 | % | ||||||||||||||||
28
ALTERRA CAPITAL HOLDINGS LIMITED
Pro Forma Combined - Alterra Capital Holdings Limited and Harbor Point Limited
Selected Financial Information
The following presentation is for informational purposes only
29
ALTERRA CAPITAL HOLDINGS LIMITED
PRO FORMA COMBINED STATEMENTS OF INCOME [a] (unaudited)
(Expressed in thousands of United States Dollars)
| FOR THE QUARTERS ENDED | ||||||||||||||||||||||||
| June 30, 2010 | Mar. 31, 2010 | Dec. 31, 2009 | Sept. 30, 2009 | June 30, 2009 | Mar. 31, 2009 | |||||||||||||||||||
| REVENUES |
||||||||||||||||||||||||
| Gross premiums written |
$ | 476,550 | $ | 676,905 | $ | 337,048 | $ | 382,650 | $ | 564,251 | $ | 662,432 | ||||||||||||
| Reinsurance premiums ceded |
(81,333 | ) | (159,515 | ) | (81,627 | ) | (73,703 | ) | (126,503 | ) | (168,155 | ) | ||||||||||||
| Net premiums written |
$ | 395,217 | $ | 517,390 | $ | 255,421 | $ | 308,947 | $ | 437,748 | $ | 494,277 | ||||||||||||
| Net premiums earned |
$ | 368,061 | $ | 338,332 | $ | 347,833 | $ | 351,245 | $ | 366,130 | $ | 317,598 | ||||||||||||
| Net investment income |
61,562 | 64,583 | 60,668 | 60,068 | 59,636 | 58,943 | ||||||||||||||||||
| Net realized and unrealized (losses) gains on investments |
(13,734 | ) | 13,280 | 18,004 | 29,622 | 22,462 | 20,722 | |||||||||||||||||
| Net impairment losses recognized in earnings |
(300 | ) | (420 | ) | (925 | ) | (139 | ) | (2,014 | ) | — | |||||||||||||
| Net realized gain on retirement of senior notes |
— | — | 111 | — | — | — | ||||||||||||||||||
| Other income |
339 | 480 | 189 | 964 | 1,193 | 1,799 | ||||||||||||||||||
| Total revenues |
415,928 | 416,255 | 425,880 | 441,760 | 447,407 | 399,062 | ||||||||||||||||||
| LOSSES AND EXPENSES |
||||||||||||||||||||||||
| Net losses and loss expenses |
213,517 | 210,543 | 166,573 | 181,064 | 186,301 | 178,130 | ||||||||||||||||||
| Claims and policy benefits |
13,943 | 17,659 | 16,976 | 14,378 | 55,407 | 14,332 | ||||||||||||||||||
| Acquisition costs |
64,315 | 53,998 | 54,042 | 59,613 | 53,317 | 47,611 | ||||||||||||||||||
| Interest expense |
8,061 | 5,226 | 6,978 | 6,292 | 5,146 | 4,351 | ||||||||||||||||||
| Net foreign exchange (gains) losses |
(1,622 | ) | (869 | ) | 789 | (116 | ) | (5,571 | ) | (1,911 | ) | |||||||||||||
| Merger and acquisition expenses |
— | — | — | (41,350 | ) | 4,785 | 5,223 | |||||||||||||||||
| General and administrative expenses |
60,137 | 51,611 | 66,157 | 57,048 | 53,979 | 57,508 | ||||||||||||||||||
| Total losses and expenses |
358,351 | 338,168 | 311,515 | 276,929 | 353,364 | 305,244 | ||||||||||||||||||
| INCOME BEFORE TAXES |
57,577 | 78,087 | 114,365 | 164,831 | 94,043 | 93,818 | ||||||||||||||||||
| Income tax expense |
4,294 | 1,311 | 5,686 | 2,910 | 3,206 | 1,990 | ||||||||||||||||||
| NET INCOME |
53,283 | 76,776 | 108,679 | 161,921 | 90,837 | 91,828 | ||||||||||||||||||
| [a] | The information presented above is on a combined pro forma basis (after the elimination of intercompany transactions and the amortization of certain acquisition accounting fair value adjustments). The pro forma financial information is provided for informational purposes only, to present a summary of the combined results of operations assuming the amalgamation with Harbor Point had occurred at the beginning of each calendar year presented. The pro forma data does not necessarily represent results that would have occurred if the amalgamation had taken place at the beginning of each calendar year presented, nor is it necessarily indicative of the future results. |
30