Zurich Reinsurance Centre Holdings Reports Improved Financial Results in Q1 1995
Zurich Reinsurance Centre Holdings, Inc. (ZRC) reported a significant improvement in its financial results for the first quarter of 1995, with after-tax net operating income increasing to $3.3 million, or $.13 per share, compared to a loss of $7.6 million, or $.29 per share, in the same period of 1994. The improved results were attributed to the absence of catastrophe losses, increased investment income, and a decrease in operating expenses. Net premiums written for the first quarter of 1995 increased by 100.6% to $115.6 million, and the statutory combined loss and expense ratio decreased to 107.1% from 138.1% in the first quarter of 1994.
Key Takeaways:
- After-tax net operating income increased to $3.3 million, or $.13 per share, in Q1 1995 compared to a loss of $7.6 million, or $.29 per share, in Q1 1994.
- Net premiums written increased by 100.6% to $115.6 million in Q1 1995.
- Statutory combined loss and expense ratio decreased to 107.1% in Q1 1995 from 138.1% in Q1 1994.
- Net investment income increased by 61.6% to $16.7 million in Q1 1995.
- Cash flow for the first three months of 1995 was $68.9 million compared to $24.0 million in Q1 1994.
- Book value reached $23.11 per share, up $1.47 from year-end.
- ZRC's claims-paying rating is "AA-" (excellent) from Standard & Poor's and an "A" (excellent) rating by A.M. Best Company.
Statistics:
- Statutory combined loss and expense ratio: 107.1% (Q1 1995), 138.1% (Q1 1994)
- Net investment income: $16.7 million (Q1 1995), $10.3 million (Q1 1994)
- Cash flow: $68.9 million (Q1 1995), $24.0 million (Q1 1994)
- Net premiums written: $115.6 million (Q1 1995), $57.5 million (Q1 1994)
- Book value: $23.11 per share (Q1 1995), $21.64 per share (Q4 1994)
Sources:
- Zurich Reinsurance Centre Holdings, Inc. press release, May 8, 1995
- ZRC Holdings, Inc. financial statements, Q1 1995
- Standard & Poor's, A.M. Best Company ratings reports.