IPC has reported a net loss of $623.4m for 2005, compared to net income of $138.6m for 2004.
The result was driven by a net loss for the fourth quarter of 2005 of $74.8m, compared to net income of $8.6m for the fourth quarter of 2004.
The company's net operating loss for the quarter was $68.5m, compared to net operating income of $10m for the same period in 2004.
President and chief executive officer Jim Bryce described the fourth quarter as, “a somewhat bittersweet period” which saw hurricane losses continue to impact on the company at a time when demand for catastrophe reinsurance was increasing, with renewals prices rising.
Bryce added, “We were generally pleased with the pricing of contracts renewing 1/1/06, although it was less robust in Europe and in one or two other minor territories, than we had originally anticipated.”
Despite being severely tested in 2005, Bryce believes that IPC “passed the challenges with flying colours”, a fact which he says was emphasised by the backing received from capital providers during the offerings of IPC's common and preferred shares in the fourth quarter.
The company provided an update on its hurricane losses, with estimated total claims from Wilma put in the region of $112.8m.
IPC also reported a rise in loss estimates for Katrina and Rita of 4%, or $30.8m to $863.8m in aggregate.
