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Transatlantic Holdings Inc. (TRH) filed Quarterly Report for the period ended 2011-09-30.
Transatlantic Holdings Inc. has a market cap of $3.31 billion; its shares were traded at around $53.03 with a P/E ratio of 76.9 and P/S ratio of 0.7. The dividend yield of Transatlantic Holdings Inc. stocks is 1.7%.
This is the annual revenues and earnings per share of TRH over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of TRH.
Highlight of Business Operations:
Income before income taxes and net income decreased in the third quarter of 2011 compared to the third quarter of 2010 due in large part to $57 million of costs related to the termination of the Allied World Merger Agreement and other strategic review activities. (See Note 2.) While underwriting profit only decreased slightly in the third quarter of 2011 compared to the third quarter of 2010, it included a $48 million increase in net catastrophe costs, which was largely offset by a $45 million benefit from the settlement of an arbitration proceeding. (See Note 9 and Note 14(d).) The percentage decline in net income between periods is greater than the percentage decline in income before income taxes due largely to the limited tax benefit of $2 million related to costs associated with the termination of the Allied World Merger Agreement and other strategic review activities recorded in the third quarter of 2011. (See Note 6 of Notes to Condensed Consolidated Financial Statements (“Note 6”).) Tax expense was calculated in the third quarter of 2011 on a discrete basis and in the third quarter of 2010 using the effective tax rate method.The loss before income taxes and the net loss reported in the first nine months of 2011 compared to income before income taxes and net income for the same 2010 period was primarily a result of a decrease in underwriting profit (loss) and $64 million of costs related to the termination of the Allied World Merger Agreement and other strategic review activities, partially offset by an increase in realized net capital gains. (See Note 2 for discussion of the costs related to the termination of the Allied World Merger Agreement and other strategic review activities.) The decrease in underwriting profit (loss) was primarily due to a $503 million increase in catastrophe costs in the first nine months of 2011, partially offset by a $45 million benefit from the settlement of an arbitration proceeding. (See Note 9 and Note 14(d).) The percentage decrease in net (loss) income between periods is less than the decrease in (loss) income before income taxes as a result of the significant tax benefits recorded related to the significant net catastrophe costs incurred in the first nine months of 2011, partially offset by the limited tax benefit of $2 million related to the costs associated with the termination of the Allied World Merger Agreement and other strategic review activities recorded in the first nine months of 2011. (See Note 6.) Tax expense was calculated in the first nine months of 2011 on a discrete basis and in the first nine months of 2010 using the effective tax rate method.
Realized net capital gains in the third quarter of 2011 had insignificant OTTI write-downs charged to earnings. Realized net capital gains in the first nine months of 2011 included ($3.1) million of OTTI write-downs charged to earnings. Realized net capital gains in the third quarter and first nine months of 2010 included ($0.8) million and ($7.1) million, respectively, of OTTI write-downs charged to earnings.
Income (loss) before income taxes was $103.4 million and $164.0 million in the third quarter of 2011 and 2010, respectively, and ($122.6) million and $313.7 million in the first nine months of 2011 and 2010, respectively. The decrease in income before income taxes in the third quarter of 2011 compared to the third quarter of 2010 is due largely to $57.3 million of costs related to strategic review activities. (See Note 2.) In addition, the net impact of increased net catastrophe costs, increased net favorable development and the negotiated settlement of an arbitration proceeding was to decrease pre-tax underwriting profit and income before income taxes in the third quarter of 2011 by $1.6 million. (See Note 9 and 14(d).)
The loss before income taxes in 2011 compared to income before income taxes in 2010 is due primarily to an underwriting loss in 2011 compared to an underwriting profit in 2010. The decrease in underwriting profit (loss) is due principally to increases in net catastrophe costs.
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