Fourth Quarter
Net income was $387 million versus $273 million in the prior year quarter; core income was a record $335 million versus $265 million in the prior year quarter.
The P&C combined ratio was 93.5% compared with 95.6% in the prior year quarter, including 0.8 points of catastrophe loss impact compared with 2.9 points in the prior year quarter. No change to COVID-19 catastrophe loss estimate.
The underlying combined ratio was 92.7% compared with 94.9% in the prior year quarter. The underlying loss ratio was 60.5% compared with 60.9% in the prior year quarter and the expense ratio was 32.0% compared with 33.7% in the prior year quarter.
P&C segments, excluding third party captives, generated gross written premium growth of 15% and net written premium growth of 12% from strong rate of +12% and new business growth of 17%.
(1)
Core operating results are a non-GAAP measure used by management to measure performance in operating the business that management believes enhances investors ability to better understand the underlying business performance and trends related to core business activities. A full reconciliation of non-GAAP financial measures can be found at the end of the financial statements which accompany this release.
(2)
Reserve build/(release) represents the net change in the Company s allowance for credit losses (ACL) from the prior period.
Fourth Quarter 2020 Highlights
Financial results
Net income of $25.7 million and diluted earnings per share of $0.27, an increase of $0.07 per share from the previous quarter