Odyssey Re Holdings Corp. Reports Second Quarter 2006 Results And Restatement of its Financial Results.STAMFORD Stamford, town, England Stamford, town (1991 pop. 18,127), in the Parts of Kesteven, Lincolnshire, E central England, on the Welland River. It is a market town. Products include diesel engines, electrical equipment, bricks, and tiles. , Conn. -- Odyssey Odyssey (ŏd`ĭsē): see Homer. Odyssey Homer’s long, narrative poem centered on Odysseus. [Gk. Lit.: Odyssey] See : Epic Odyssey Re Holdings Corp. (NYSE NYSE See: New York Stock Exchange : ORH ORH Worcester (Airport) ORH Operation Restore Hope ORH Worcester, MA, USA - Worcester /James D O'Brien Field (Airport Code) ) today reported net income available to common shareholders of $202.4 million, or $2.80 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the quarter ended June June: see month. 30, 2006, compared to $51.1 million, or $0.74 per diluted share, for the quarter ended June 30, 2005. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. after tax was $89.4 million, or $1.24 per diluted share, for the second quarter of 2006 compared to $38.7 million, or $0.57 per diluted share, for the second quarter of 2005. Operating income after tax (1) excludes both net realized capital gains as reported and net realized capital gains of an equity investee included in net investment income and the loss on early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt. Included in second quarter 2006 and 2005 net income available to common shareholders were after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. net realized capital gains, including capital gains of an equity investee which is included in net investment income, of $113.2 million and $14.5 million, or $1.56 and $0.20 per diluted share, respectively. Results for the second quarter of 2006 include a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. tax benefit of $16.5 million, or $0.23 per share. Net income available to common shareholders was $361.8 million, or $5.01 per diluted share for the six months ended June 30, 2006 compared to $82.6 million, or $1.20 per diluted share, for the comparable period of 2005. Book value per common share Book Value Per Common Share A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Formula: was $25.07 at June 30, 2006, an increase of 13.6%, or $3.00 per share, compared to $22.07 at December December: see month. 31, 2005. Total shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was $1.83 billion at June 30, 2006, an increase of $208.5 million compared to total shareholders' equity of $1.62 billion at December 31, 2005. Results for the periods presented herein reflect a restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. to correct the accounting treatment for certain equity and convertible bond investments, as discussed in more detail below. There is no change in shareholders' equity at March 31, 2006 as a result of the total cumulative impact of the restatement through the first quarter of 2006. Highlights for the second quarter of 2006 are summarized as follows: --Net operating income of $89.4 million ($1.24 per diluted share) more than doubled over second quarter 2005, a record for the Company --Gross premiums written of $584.1 million, a decrease of 2.9% over second quarter 2005 --Net premiums earned of $584.6 million, an increase of 2.9% over second quarter 2005 --Combined ratio of 95.3%, compared to 96.5% for the second quarter of 2005 --Net investment income (excluding realized capital gains of an equity investee) of $94.1 million, an increase of 88.2% over second quarter 2005 --Annualized operating return on equity of 21.2% for the second quarter and 18.1% for the first half of the year --Total invested assets were $6.5 billion, an increase of 9.4% over December 31, 2005 Gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. for the three months ended June 30, 2006 were $584.1 million, a decrease of 2.9% compared to $601.7 million for the three months ended June 30, 2005. The change was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a 0.2% decrease in the Company's worldwide reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. business and a 9.8% decrease in its specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. insurance business, reflecting increased competitive market conditions, particularly in the Company's international insurance business written through Lloyds. Net premiums written for the second quarter of 2006 were $542.8 million, an increase of 1.0% over second quarter 2005 net premiums written of $537.5 million. The combined ratio for the second quarter of 2006 was 95.3%, versus 96.5% for the comparable 2005 period. Results for the three months ended June 30, 2006 reflect net catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). losses, including net catastrophe losses from prior periods, of $16.9 million after tax, or $0.23 per diluted share, compared to $5.3 million, or $0.08 per diluted share, for the second quarter of 2005. Commenting on the second quarter, Andrew A. Barnard Bar·nard , Christiaan Neethling 1923-2001. South African surgeon who performed the first human heart transplant (1967). , President and Chief Executive Officer, stated, "We achieved the highest level of earnings this quarter in our history as we continued to benefit from solid underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and investment performance. Book value per share has increased 13.6% to date in 2006, allowing us to continue the momentum in compounding book value by 15% over the long term." Net investment income, excluding realized capital gains of an equity investee included in net investment income, amounted to $94.1 million for the second quarter of 2006, compared to $50.0 million for the second quarter of 2005. Net pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta realized capital gains were $174.3 million for the second quarter of 2006, compared to $22.3 million for the second quarter of 2005. This includes realized capital gains of an equity investee included in net investment income of $103.3 million and $1.4 million for the three months ended June 30, 2006 and 2005, respectively. For the three months ended June 30, 2006, net cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was $26.9 million, a decrease of 64.0% from $74.7 million for the three months ended June 30, 2005. At June 30, 2006, total investments and cash were $6.5 billion, an increase of $555.8 million or 9.4% over December 31, 2005. Net unrealized losses Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. , net of taxes, were $91.5 million at June 30, 2006 compared to net unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. , after tax, of $87.3 million at December 31, 2005. In the second quarter of 2006, OdysseyRe paid a cash dividend of $0.03125 per common share on June 30, 2006 to common shareholders of record as of June 16, 2006. Restatement of Financial Results: OdysseyRe also announced today that it is restating its financial results for the years 2001 through 2005, as well as its results for the three months ended March 31, 2006. The purpose of the restatement is to correct the accounting treatment for certain equity and convertible bond investment securities. OdysseyRe's decision to restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state its financial results is based on its determination that while there will be no change in shareholders' equity from the restatement, the corrections are material to net income in certain previously reported periods. The corrections primarily relate to the accounting for convertible bond securities held as investments. Under SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 133, the change in the value of the embedded option Embedded Option An option that is an inseparable part of another instrument. Compare this to a normal (or bare) option, which trades separately from the underlying security. Notes: A common embedded option is the call provision in most corporate bonds. in a convertible security is required to be included in income through realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. and losses rather than unrealized gains and losses included in shareholders' equity, as previously reported by the Company. In addition, certain gains and losses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc investments in which the Company utilizes the equity method of accounting should have been recognized as realized gains and losses rather than unrealized gains and losses included in shareholders' equity, as previously reported by the Company. The restatement will have no effect on shareholders' equity through March 31, 2006. OdysseyRe estimates that, as a result of the restatement, net income for the three months ended March 31, 2006 will be increased by $9.8 million and the net loss for the year ended December 31, 2005 will be increased by $6.7 million, with an increase in net income of $7.1 million attributable to the first six months of 2005. There is an offsetting change in other comprehensive income, a component of shareholders' equity, in each period for the same amount. There is no change in shareholders' equity for each period. The effects of these adjustments are reflected in the Company's unaudited financial results included herein. The Company will finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... its restatement and file an amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. 2005 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Although the Company is not aware of further adjustments, it is possible that further adjustments will be made to the Company's financial results as presented herein. Management is also in the process of completing its assessment of the impact of the restatement on the Company's internal controls over financial reporting. Until the Company files its amended 2005 Form 10-K, its published financial statements cannot be relied upon.
(1) "Operating income" after tax is a non-GAAP financial measure
often used by investors to evaluate performance in the insurance
and reinsurance industry. Operating income after tax is equal to
net income available to common shareholders, excluding net
realized capital gains as reported, net realized capital gains of
an equity investee included in net investment income and the loss
on early extinguishment of debt. Although realized capital gains
or losses are an integral part of the Company's operations, the
amount recognized during any particular period cannot be
reasonably estimated and can vary significantly. Management
believes that providing operating income after tax to investors is
a useful supplement to GAAP information concerning the Company's
performance. A reconciliation of net income available to common
shareholders to operating income after tax and related amounts per
diluted common share is as follows (in millions, except per share
amounts):
Three months ended (unaudited)
June 30, 2005
June 30, 2006 (Restated)
---------------------------------
Per Per
Diluted Diluted
$ Share $ Share
---------------------------------
Net income available to common
shareholders $202.4 $2.80 $51.1 $0.74
Less: Net realized capital gains,
after tax (46.1) (0.64) (13.6) (0.19)
Less: Net realized capital gains of
an equity investee included in net
investment income, after tax (67.1) (0.92) (0.9) (0.01)
Add: Loss on early extinguishment of
debt, after tax 0.2 - 2.1 0.03
---------------------------------
Operating income, after tax $89.4 $1.24 $38.7 $0.57
=================================
Six months ended (unaudited)
June 30, 2005
June 30, 2006 (Restated)
---------------------------------
Per Per
Diluted Diluted
$ Share $ Share
---------------------------------
Net income available to common
shareholders $361.8 $5.01 $82.6 $1.20
Less: Net realized capital gains,
after tax (105.9) (1.46) (10.5) (0.15)
Less: Net realized capital gains of
an equity investee included in net
investment income, after tax (108.6) (1.50) (17.4) (0.25)
Add: Loss on early extinguishment
of debt, after tax 0.2 - 2.1 0.03
---------------------------------
Operating income, after tax $147.5 $2.05 $56.8 $0.83
=================================
A conference call to discuss second quarter results will be held at 10:00 a.m. Eastern Daylight Saving Time daylight saving time (DST), time observed when clocks and other timepieces are set ahead so that the sun will rise and set later in the day as measured by civil time. on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , July July: see month. 28, 2006. A live audio webcast of the conference call will be available on the Odyssey Re Holdings Corp. web site (www.odysseyre.com). In addition, callers may listen to the conference call by dialing (800) 500-3792 (domestic) or (719) 457-2734 (international) and asking for the OdysseyRe call. A replay of the call will be available from 12:00 p.m. Eastern Daylight Saving Time on Friday, July 28, 2006 until 11:59 p.m. Eastern Daylight Saving Time on Sunday Sunday: see Sabbath; week. , August 6, 2006. To access the replay, please call either (888) 203-1112 (domestic) or (719) 457-0820 (international); the passcode number is 7245104. Odyssey Re Holdings Corp. is a leading worldwide underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. of property and casualty treaty and facultative facultative /fac·ul·ta·tive/ (fak´ul-ta?tiv) not obligatory; pertaining to the ability to adjust to particular circumstances or to assume a particular role. fac·ul·ta·tive adj. 1. reinsurance, as well as specialty insurance. OdysseyRe operates through its subsidiaries, Odyssey America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. Reinsurance Corporation, Hudson Hudson, towns, United States Hudson. 1 Industrial town (1990 pop. 17,233), Middlesex co., E central Mass., on the Assabet River, in an apple-growing region; settled c.1699, inc. 1866. Insurance Company, Hudson Specialty Insurance Company, Clearwater Clearwater, city, United States Clearwater, residential and resort city (1990 pop. 98,784), seat of Pinellas co., W central Fla., on the Pinellas peninsula, between Clearwater Bay and the Gulf of Mexico; inc. 1891. Insurance Company, Newline End of line code. See CR/LF. (character, jargon) newline - /n[y]oo'li:n/ Line feed or other character sequence used to terminate a line of text. Unix uses line feed as its text line terminator - a Bell-Labs-ism rather than a Berkeleyism. Underwriting Management Limited and Newline Insurance Company Limited. The Company underwrites through offices in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , Paris, Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). , Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . Odyssey Re Holdings Corp. is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol ORH. Certain statements contained herein may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and are made pursuant to the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Such factors include, among others, the following: a reduction in net income if the Company's loss reserves are insufficient in·suf·fi·cient adj. 1. Not sufficient. 2. Incapable of proper functioning. ; the occurrence of catastrophic events with a frequency or severity exceeding the Company's estimates; the lowering or loss of one of the Company's financial or claims-paying ratings, including those of the Company's subsidiaries; an inability to realize the Company's investment objectives; a decrease in the level of demand for the Company's reinsurance or insurance business, or increased competition; emerging claim and coverage issues; risks relating to ongoing investigations by U.S. government authorities; the risk that ongoing regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. developments will disrupt the Company's business or mandate A judicial command, order, or precept, written or oral, from a court; a direction that a court has the authority to give and an individual is bound to obey. A mandate might be issued upon the decision of an appeal, which directs that a particular action be taken, or upon a changes in industry practices that increase the Company's costs; changes in economic conditions, including interest rate, currency, equity and credit conditions; the Company's inability to access its subsidiaries' cash; loss of services A deprivation of a family member, such as a parent or spouse, of the right to benefit from the performance of various duties, coupled with the privation of love and companionship, provided by the victim of a personal injury or Wrongful Death. of any of the Company's key employees; risks related to the Company's use of reinsurance brokers; failure of the Company's reinsurers to honor As a verb, to accept a bill of exchange, or to pay a note, check, or accepted bill, at maturity. To pay or to accept and pay, or, where a credit so engages, to purchase or discount a draft complying with the terms of the draft. their obligations; regulatory and legislative changes; risks associated with the growth of the Company's specialty insurance business; and other factors that are described in the Company's filings with the Securities and Exchange Commission. Except as otherwise required by federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Visit OdysseyRe's web site - www.odysseyre.com - for additional information about the Company. In addition, anyone may view the Company's historical press releases and filings with the Securities and Exchange Commission, which provide additional data regarding the Company's prior quarterly and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. results. This historical information may be found on OdysseyRe's web site under "Investor Information."
ODYSSEY RE HOLDINGS CORP.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
June 30, December 31,
2006 2005
----------- -----------
(unaudited)
ASSETS
Investments and cash:
Fixed income securities, available for
sale, at fair value (amortized cost
$2,481,602 and $2,636,294,
respectively) $2,320,975 $2,585,587
Equity securities:
Common stocks, at fair value (cost
$522,720 and $589,394,
respectively) 544,086 605,768
Common stocks, at equity 251,094 534,427
Short-term investments, at cost which
approximates fair value 310,110 199,503
Cash and cash equivalents 2,602,848 1,528,427
Cash collateral for borrowed
securities 274,114 240,642
Other invested assets 179,916 233,039
----------- -----------
Total investments and cash 6,483,143 5,927,393
Accrued investment income 53,277 46,843
Premiums receivable 522,610 550,496
Reinsurance recoverable on paid losses 130,128 140,881
Reinsurance recoverable on unpaid losses 932,844 1,206,785
Prepaid reinsurance premiums 65,283 84,696
Funds held by reinsureds 155,882 172,896
Deferred acquisition costs 152,815 171,350
Federal and foreign income taxes 229,391 251,423
Other assets 66,121 67,475
----------- -----------
Total assets $8,791,494 $8,620,238
=========== ===========
LIABILITIES
Unpaid losses and loss adjustment
expenses $5,128,144 $5,117,708
Unearned premiums 758,504 834,485
Reinsurance balances payable 122,452 160,185
Funds held under reinsurance contracts 118,008 167,020
Debt obligations 551,890 469,155
Obligation to return borrowed securities 99,036 82,543
Other liabilities 181,530 165,704
----------- -----------
Total liabilities 6,959,564 6,996,800
----------- -----------
SHAREHOLDERS' EQUITY
Preferred shares, $0.01 par value;
200,000,000 shares authorized; 2,000,000
series A shares and 2,000,000 series B
shares issued and outstanding 40 40
Common shares, $0.01 par value;
500,000,000 shares authorized; 69,242,857
shares issued 692 692
Additional paid-in capital 983,189 984,571
Treasury shares, at cost (63,671 and
115,325 shares, respectively) (1,546) (2,916)
Unearned stock compensation - (1,770)
Accumulated other comprehensive income,
net of deferred income taxes (51,859) 98,931
Retained earnings 901,414 543,890
----------- -----------
Total shareholders' equity 1,831,930 1,623,438
----------- -----------
Total liabilities and
shareholders' equity $8,791,494 $8,620,238
=========== ===========
ODYSSEY RE HOLDINGS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
Six Months Ended Three Months Ended
June 30, June 30,
------------------------ ------------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
REVENUES
Gross premiums
written $1,176,870 $1,275,134 $584,059 $601,657
Ceded premiums
written 98,051 128,120 41,240 64,178
----------- ----------- ----------- -----------
Net premiums
written 1,078,819 1,147,014 542,819 537,479
(Increase) decrease
in unearned
premiums 59,242 (14,703) 41,790 30,708
----------- ----------- ----------- -----------
Net premiums
earned 1,138,061 1,132,311 584,609 568,187
Net investment
income 322,451 117,842 197,391 51,387
Net realized
investment gains 162,877 16,213 70,981 20,895
----------- ----------- ----------- -----------
Total revenues 1,623,389 1,266,366 852,981 640,469
----------- ----------- ----------- -----------
EXPENSES
Losses and loss
adjustment
expenses 746,345 805,785 395,983 392,550
Acquisition costs 246,808 236,020 124,429 120,930
Other underwriting
expenses 72,016 72,279 36,830 34,959
Other expense, net 9,935 11,627 2,741 4,437
Interest expense 18,508 13,917 9,691 7,511
Loss on early
extinguishment of
debt 2,403 2,060 2,403 2,060
----------- ----------- ----------- -----------
Total expenses 1,096,015 1,141,688 572,077 562,447
----------- ----------- ----------- -----------
Income before
income taxes 527,374 124,678 280,904 78,022
----------- ----------- ----------- -----------
Federal and foreign
income tax provision
(benefit):
Current 151,914 51,046 78,770 23,662
Deferred 9,561 (8,930) (2,306) 3,248
----------- ----------- ----------- -----------
Total federal
and foreign
income tax
provision 161,475 42,116 76,464 26,910
----------- ----------- ----------- -----------
Net income 365,899 82,562 204,440 51,112
Preferred dividends (4,054) - (2,057) -
----------- ----------- ----------- -----------
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
$361,845 $82,562 $202,383 $51,112
=========== =========== =========== ===========
BASIC
Weighted average
common shares
outstanding 68,473,794 64,317,054 68,478,035 64,352,281
=========== =========== =========== ===========
Basic earnings per
common share $5.28 $1.28 $2.96 $0.79
=========== =========== =========== ===========
DILUTED
Weighted average
common shares
outstanding 72,481,547 69,874,831 72,435,220 69,765,394
=========== =========== =========== ===========
Diluted earnings
per common share $5.01 $1.20 $2.80 $0.74
=========== =========== =========== ===========
DIVIDENDS
Dividends declared
per common share $0.063 $0.063 $0.031 $0.031
=========== =========== =========== ===========
COMPREHENSIVE INCOME
Net income $365,899 $82,562 $204,440 $51,112
Other comprehensive
income (loss), net
of tax (150,790) 44,604 (110,914) 62,144
----------- ----------- ----------- -----------
Comprehensive
income $215,109 $127,166 $93,526 $113,256
=========== =========== =========== ===========
ODYSSEY RE HOLDINGS CORP.
BUSINESS SEGMENTS (UNAUDITED)
(IN THOUSANDS)
Six Months Ended Three Months Ended
June 30, June 30,
--------------------- ------------------
% %
2006 2005 Change 2006 2005 Change
---------- ---------- ------- -------- -------- ------
GROSS PREMIUMS
WRITTEN
Americas $ 466,411 $ 548,920 (15.0)% $233,899 $250,253 (6.5)%
EuroAsia 287,653 282,791 1.7 151,916 143,562 5.8
London Market 177,234 194,811 (9.0) 92,458 97,468 (5.1)
U.S. Insurance 245,572 248,612 (1.2) 105,786 110,374 (4.2)
---------- ---------- -------- --------
Total $1,176,870 $1,275,134 (7.7)% $584,059 $601,657 (2.9)%
========== ========== ======== ========
NET PREMIUMS
WRITTEN
Americas $ 448,724 $ 529,236 (15.2)% $226,408 $235,699 (3.9)%
EuroAsia 282,730 270,540 4.5 154,124 142,473 8.2
London Market 160,059 174,883 (8.5) 84,500 85,102 (0.7)
U.S. Insurance 187,306 172,355 8.7 77,787 74,205 4.8
---------- ---------- -------- --------
Total $1,078,819 $1,147,014 (5.9)% $542,819 $537,479 1.0 %
========== ========== ======== ========
NET PREMIUMS
EARNED
Americas $ 504,717 $ 538,083 (6.2)% $262,867 $265,978 (1.2)%
EuroAsia 275,203 271,348 1.4 146,631 139,019 5.5
London Market 170,881 178,122 (4.1) 87,705 86,876 1.0
U.S. Insurance 187,260 144,758 29.4 87,406 76,314 14.5
---------- ---------- -------- --------
Total $1,138,061 $1,132,311 0.5 % $584,609 $568,187 2.9%
========== ========== ======== ========
Six Months Ended Three Months Ended
June 30, June 30,
--------------------- % ------------------ %
Point Point
2006 2005 Change 2006 2005 Change
---------- ---------- ------- -------- -------- ------
LOSSES AND LOSS
ADJUSTMENT EXPENSES
RATIO
Americas 73.0 % 78.2 % (5.2) 75.0 % 80.3 % (5.3)
EuroAsia 59.1 67.0 (7.9) 60.0 57.6 2.4
London Market 63.7 62.5 1.2 65.9 56.9 9.0
U.S. Insurance 56.8 63.6 (6.8) 60.8 65.0 (4.2)
Total 65.6 % 71.2 % (5.6) 67.7 % 69.1 % (1.4)
ACQUISITION COSTS AND
OTHER UNDERWRITING EXPENSES
RATIO
Americas 31.9 % 30.3 % 1.6 30.7 % 30.4 % 0.3
EuroAsia 25.5 26.5 (1.0) 25.1 26.9 (1.8)
London Market 25.1 24.3 0.8 26.1 25.8 0.3
U.S. Insurance 24.1 20.5 3.6 23.7 20.0 3.7
Total 28.0 % 27.2 % 0.8 27.6 % 27.4 % 0.2
COMBINED RATIO
Americas 104.9 % 108.5 % (3.6) 105.7 % 110.7 % (5.0)
EuroAsia 84.6 93.5 (8.9) 85.1 84.5 0.6
London Market 88.8 86.8 2.0 92.0 82.7 9.3
U.S. Insurance 80.9 84.1 (3.2) 84.5 85.0 (0.5)
Total 93.6 % 98.4 % (4.8) 95.3 % 96.5 % (1.2)
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