Odyssey Re reports 2006 1Q earnings

Odyssey Re Holdings Corp. (NYSE: ORH) has reported investment and net income increases for 2006 1Q, as well as a significant improvement in its combined operating ratio (COR) over the same period last year.
Odyssey Re reported net income available to common shareholders of US$149.7 million for 2006 1Q, compared to US$33.7 million over 2005 Q1.
The company’s COR of 91.8% during the first quarter of 2006 marked a significant difference compared to the COR of 100.3% for 2005 1Q.
Commenting on the first quarter, Andrew A. Barnard, Odyssey Re’s president and CEO, said: “During the quarter, we achieved solid underwriting and investment performance, resulting in 7.7% growth in book value per share. As the year progresses, we will continue to optimize our portfolio mix to capture the most attractive return opportunities, which is expected to lead to lower overall reinsurance premiums.
“The property market is providing many new attractively priced opportunities, although we remain measured in the amount of aggregate exposure we are prepared to assume.”
The reinsurer reported gross premiums written of US$592.8 million during 2006 1Q, a decrease of 12% over the first quarter of 2005. Net premiums earned were US$553.5 million, a decrease of 1.9% over 2005 1Q.
Net investment income (excluding realized capital gains of an equity investee) amounted to US$59.5 million, an increase of 49.5% over first quarter 2005.
Results for the three months ended Mar. 31, 2006 reflect net catastrophe losses, including net catastrophe losses from prior periods, of US$10.7 million after tax, the company announced. “Net losses, after applicable reinstatement premiums, relating to Hurricanes Katrina, Rita and Wilma increased by 2.3%, or US$6.5 million after tax, all attributable to Hurricane Rita,” a press release states.