Bermudian reinsurer PX Re reported a sharp increase in retentions in the second quarter.
Gross written premiums increased 59% quarter-on-quarter and 7% half-on-half but net written premiums increased by a whopping 180% quarter-on-quarter and 22% half-on-half, indicating the company was retaining more risk during the periods.
The operation greatly increased its catastrophe and net risk excess writing, which hit net premiums of $51m (£32m) in the second quarter from $23m (£14m) the year before, a 127% increase.
But losses and expenses also increased in the quarter, by 116% to $72m (£45m) from $33m (£20m).
Measured across the six months ended 30 June, losses and expenses increased 85% to $138m (£86m) from $75m (£47m).
The combined ratio worsened by 16 percentage points to 81% in the second quarter from 65% the year before and to 76% in the six months from 64%.
PX Re also increased prior-year loss reserves by $18.1m (£11m) in the second quarter, focussed mainly on aerospace and exited lines.
Total revenues increased by 70% in the second quarter, to $94m (££58m) from $55m (£34m) in the same period last year.
Net income increased by a relatively modest 13% in the quarter, to $21.5m (£13m) from $19m (£11m) the year before, and 21% in the six month period to $45m (£27m) from $37m (£23m).
Annualised return on equity for the second quarter was 18.8% and PX Re declared a regular quarterly dividend of $0.06 a share.
