Q4 combined ratio rises to 160.5%
Chartis, the non-life insurance division of US insurance giant AIG, made a $4bn (£2.5bn) operating loss after tax in the fourth quarter of 2010 following its previously-announced $4.2bn reserve hike.
Excluding the reserve strengthening. AIG said Chartis’s operating result would have been broadly in line with the £1.8bn loss it made in the fourth quarter of 2009.
Chartis’s pre tax loss more than doubled to $3.3bn in the fourth quarter of 2010 from $1.6bn in the same period last year. The insurer’s combined ratio jumped to 160.5% from 132.5% on an underwriting loss of $5.1bn (Q4 2009: loss of $2.6bn). AIG attributed 49.2 points of the Q4 2010 combined ratio to the 4.2bn reserve strengthening.
For the full year, Chartis made an operating loss of $1.1bn (2009: profit of $694m) and a pre tax loss of $116m (2009: profit of $164m). The combined ratio for the full year was 116.8% (2009: 108%).
Chartis: Fourth-quarter 2010 highlights in $m (compared with Q4 2009)
- Net premiums written: 7,578 (6,929)
- Underwriting profit: -5,175 (-2,606)
- Operating profit: -3,974 (-1,751)
- Pre-tax profit: -3,342 (-1,599)
- Combined ratio: 160.5% (132.5%)
Chartis: Full-year highlights in $m (compared with full year 2009)
- Net premiums written: 31,612 (30,653)
- Underwriting profit: -5,460 (-2,598)
- Operating profit: -1,068 (694)
- Pre-tax profit: -116 (164)
- Combined ratio: 116.8% (108%)
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