Odyssey Re Q3 profits up

by David Masters

Story link: Odyssey Re Q3 profits up

Reinsurance underwriter Odyssey Re Holdings has posted a net income of $121.5 million, or $1.96 per diluted share, for the three months ending 30th September 2008.

This is 8% higher than in the same third quarter period of 2007.

Last year Odyssey reported third quarter net income of $112.1 million, or $1.57 per diluted share.

The reported results include formerly announced catastrophe losses from hurricanes Gustav and Ike of $78 million, after tax.

Operating loss after tax for the period was $6.4 million, or $0.10 per diluted share, compared to an operating income after tax of $55.2 million in the third quarter of 2007.

Gross premiums written for the quarter were $656.7 million, up 3.3% on year. Net premiums written, however, decreased 0.7% on year to $571.8 million.

Net investment income fell 18% to $62.5 million from $86.5 million in the same period last year.

Total net income available to common shareholders for the first nine months of 2008 was $435.7 million, or $6.68 per diluted share.

This is 19% higher than the $367.5 million net income, or $5.63 per diluted share, that Odyssey reported for the first nine months of 2007.

Revenues for this nine month period were $2.34 billion, up from the $2.11 billion in the same period during the previous year.

During the third quarter, Odyssey repurchased and retired around 3.8 million of its common stock for $140.7 million, an average repurchase price of $37.34 per share.