Results show strong industry in Europe and US
International insurers and brokers are reporting a strong surge in revenue and profit going into 2007 and are feeling confident about the year ahead.
The good times are rolling on both sides of the Atlantic as stronger claims and investment environments far outweigh the falls in premiums associated with the softening market.
Bermuda-based Ace Insurance reported net income of $US2.31 billion ($2.97 billion) last year, up from $US1.03 billion ($1.33 billion) in 2005. CEO Evan Greenberg says the final quarter, in which Ace’s earnings increased 182%, was the jewel in the crown of an excellent year.
Book value grew by more than 20% and return on equity exceeded 18%. A broad capacity and wide geographic reach mean the company should continue to improve results this year.
Europe’s second-largest insurer, Axa, found market conditions “robust” in 2006 and was able to secure a 9.9% rise in sales to €78.775 billion ($131.7 billion). Property and casualty revenue rose 4.9% to €19.79 billion ($33 billion) over the year.
CEO Henri de Castries says Axa is well placed to meet long-term top-line growth targets. The company will also continue to seek growth through acquisitions – such as last year’s $US11 billion ($14.2 billion) purchase of Winterthur.
Meanwhile, US broker Arthur J Gallagher has reported higher revenue and profit for 2006. The company’s brokerage and risk management units had $US1.47 billion ($1.9 billion) in revenue for the year, up 7.3% on the 2005 result. Overall profit more than quadrupled to end the year $US128.5 million ($166 million) in the black.
CEO J Patrick Gallagher says it is a strong result in light of the difficulties the US insurance industry has faced over the past two years.
Net written premiums fell slightly for New Jersey-based Chubb Corporation in 2006, but it still managed to report an improved profit and combined ratio. The company’s $US11.98 billion ($15.5 billion) in premiums translated into a 38.4% increase in net income – up to $US2.53 billion ($3.27 billion) for the calendar year.
The good times are rolling on both sides of the Atlantic as stronger claims and investment environments far outweigh the falls in premiums associated with the softening market.
Bermuda-based Ace Insurance reported net income of $US2.31 billion ($2.97 billion) last year, up from $US1.03 billion ($1.33 billion) in 2005. CEO Evan Greenberg says the final quarter, in which Ace’s earnings increased 182%, was the jewel in the crown of an excellent year.
Book value grew by more than 20% and return on equity exceeded 18%. A broad capacity and wide geographic reach mean the company should continue to improve results this year.
Europe’s second-largest insurer, Axa, found market conditions “robust” in 2006 and was able to secure a 9.9% rise in sales to €78.775 billion ($131.7 billion). Property and casualty revenue rose 4.9% to €19.79 billion ($33 billion) over the year.
CEO Henri de Castries says Axa is well placed to meet long-term top-line growth targets. The company will also continue to seek growth through acquisitions – such as last year’s $US11 billion ($14.2 billion) purchase of Winterthur.
Meanwhile, US broker Arthur J Gallagher has reported higher revenue and profit for 2006. The company’s brokerage and risk management units had $US1.47 billion ($1.9 billion) in revenue for the year, up 7.3% on the 2005 result. Overall profit more than quadrupled to end the year $US128.5 million ($166 million) in the black.
CEO J Patrick Gallagher says it is a strong result in light of the difficulties the US insurance industry has faced over the past two years.
Net written premiums fell slightly for New Jersey-based Chubb Corporation in 2006, but it still managed to report an improved profit and combined ratio. The company’s $US11.98 billion ($15.5 billion) in premiums translated into a 38.4% increase in net income – up to $US2.53 billion ($3.27 billion) for the calendar year.