Converium reports profitable year

Converium Holding AG has seen a profitable year, reporting a net profit of US$68.7 million for 2005 following a reported loss of US$582.5 million for 2004.
Weather-related losses including hurricanes Katrina, Rita and Wilma as well as the European floods, and winter storm Erwin contributed to a pre-tax loss of US$164.8 million. While the severe claims related to these natural catastrophes as well as costs for an accounting review reduced the Swiss reinsurer’s 2005 profits, the results remain better than anticipated with the segment achieving a total income of US$173.8 million.
“Based on the underlying quality of our ongoing business, the stability of prior accident years’ loss reserves and the progress in running-off and commuting CRNA liabilities, we have been able to absorb significant catastrophe losses and to generate net income of close to US$70 million,” Inga Beale, CEO of Converium, says.
Beale says the Company is confident that 2006 will show further progress towards its sustainable recovery.