Insurer blames tough underwriting conditions as combined operating ratio soars
Allied World’s share price fell 13.31% yesterday as profits plunged.
The global insurer’s profits crashed to $83.9m last year compared with $490.3m in 2014.
One problem was its underwhelming return on investments, which last year shrank to just $54.5m compared with $265.8 in 2014.
In the fourth quarter alone, the firm took a hit on its fixed income book because of wider credit spreads and rising interest rates.
Chief executive Scott Carmilani largely blamed difficult underwriting conditions. Combined operating ratio was 95.1% compared with 85.2% in 2014.
He said: “2015 was a challenging year, marked by a difficult underwriting environment and financial market volatility.
“With the close of the Asian acquisitions and targeted growth in our insurance segments, I believe our franchise is well positioned. We look forward to creating and capitalising on profitable opportunities in 2016.”
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
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