Max Re Reports $38.8 Million Q3 Net

Bermuda’s Max Re Capital Ltd. reported net income for the three months ended September 30, 2003 of $38.8 million, or $0.89 per diluted share, compared to a net loss of $14.3 million, or $0.37 per diluted share, for the third quarter of 2002.

For the nine months ended September 30, 2003, Max Re posted net income of $84.2 million, or $2.08 per diluted share, compared to a net loss of $16.7 million, or $0.43 per diluted share, for the nine months ended September 30, 2002.

“Net operating income before minority interest, which represents net income before minority interest reduced by net realized gains on sale of fixed maturities, for the three months ended September 30, 2003 was $29.3 million, or net operating income of $0.64 per diluted share, compared with a net operating loss before minority interest of $17.7 million, or a net operating loss of $0.39 per diluted share, for the three months ended September 30, 2002,” said the announcement.

Chairman, President and CEO Robert J. Cooney commented, “Our third quarter profitable underwriting result is reflective of the increasingly larger percentage of traditional reinsurance and direct insurance in our property and casualty portfolio. Accelerating earned premium combined with attractive underwriting margins has dramatically shifted our earnings focus towards underwriting income. Total income this quarter was again augmented appreciably by a fourth consecutive quarter of strong alternative investment results.”

The bulletin noted that:”Gross premiums written for the three months ended September 30, 2003 were $188.6 million, coming entirely from property and casualty underwriting, compared to $65.7 million, also all from property and casualty underwriting, for the three months ended September 30, 2002.

“Net premiums earned for the three months ended September 30, 2003 were $178.7 million compared to $96.9 million for the same period of 2002.

“Current year to date premiums written are $784.9 million compared to $531.1 million for the first nine months of 2002. Net premiums earned for the first nine months of 2003 are $465.8 million compared to $247.6 million for the same period in 2002.”