News Focus - Converium announces 2005 profit.

(From Reinsurance)

Converium has announced it made a profit of $68.7m in 2005. The company said the results reflected a satisfactory underwriting performance of its ongoing operations, which produced total segments' income of $173.8m, a net pre-tax impact of $164.8m from a series of major natural catastrophes that included winter storm Erwin, the continental European floods, and hurricanes Katrina, Rita and Wilma.

There was also a net positive impact on the technical result of $12.1m, due mainly to the continuing stabilisation of Converium's prior accident years' loss reserves. It also mentioned the successful progression of the Converium Reinsurance (North America) (CRNA) run-off and commutation strategy, which resulted in a total reduction of net liabilities of $653.1m to approximately $1.1bn, and a net income benefit from commutations of $60.5m.

Converium had total operating and administration expenses of $210.8m, which represents a decline of 4.1% compared with 2004. This result is despite the significant additional expenses arising from the internal review and restatement, as well as Converium's operational restructuring and a total investment result of $350.4m (or, an average total investment income yield of 4.4%, which is equal to 2004).

For the fourth quarter of 2005, Converium reported a net income of $34.2m, largely driven by a satisfactory underwriting performance of Converium's ongoing ...