Max Capital’s Q1 income falls 90%

by David Masters

Story link: Max Capital’s Q1 income falls 90%

Bermuda-based Max Capital has reported its first quarter results, with net income falling by almost 90% on year.

Net income for the quarter was $7.7 million, or $0.13 per fully diluted share. This is compared to $80 million, or $1.24 per fully diluted share, for the first quarter of 2007.

Net operating income was even more adversely affected, down to $6.3 million compared to $81 million last year.

The fall in net income is being attributed to losses on investments. Max Capital’s return on alternative investments for the quarter was negative 2.11%.

Poor performance of investments was mitigated by rising premiums, with gross written premiums up 43.7% on year, from $213 million in the first quarter of 2007 to $306 million. This growth is largely a reflection of new agriculture business in the property and casualty reinsurance segment.

Net premiums earned was down slightly, from $139.4 million a year ago to $135.8 million.

Chairman and CEO Marston Becker said that the results reflected a ‘good underwriting quarter’ for his company, which is continuing to ‘develop well’.