Alleghany Corporation (Y) has reported a 3.45 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $149.18 million, or $9.67 a share in the quarter, compared with $154.50 million, or $9.96 a share for the same period last year.
Revenue during the quarter grew 3.62 percent to $1,532.45 million from $1,478.95 million in the previous year period. Net premium earned for the quarter went down marginally by 1.01 percent or $12.38 million to $1,209.19 million.
Total expenses move up marginally
Benefits, losses and expenses for the quarter were at $1,324.54 million, or 109.54 percent of premium earned from $1,266.63 million or 103.69 percent of premium earned in the last year period. Operating income for the quarter was $207.91 million, compared with $212.32 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.10 million compared with $1.90 million in the prior year period. At the same time, adjusted EBITDA margin improved 1 basis points in the quarter to 0.14 percent from 0.13 percent in the last year period.
Net investment income was at $115.54 million for the quarter, up 10.18 percent or $10.67 million from year-ago period. The company has recorded a gain on investments of $56.43 million in the quarter compared with a gain of $15.13 million for the previous year period.
Weston Hicks, President and chief executive officer of Alleghany, stated, "Our first quarter results reflect strong investment performance, particularly by Alleghany’s equity portfolio, and solid underwriting discipline at each of our (re)insurance businesses. Financial statement total return2 before tax was 1.7%, and net investment income increased 10.1% in the first quarter, primarily due to higher returns from our equity investment in Ares and investment returns in Ares-managed funds."
Assets outpace liabilities growth
Total assets increased 3.83 percent or $883.80 million to $23,939.14 million on Mar. 31, 2017. On the other hand, total liabilities were at $15,680.82 million as on Mar. 31, 2017, up 2.77 percent or $423.08 million from year-ago.
Return on assets stood at 0.71 percent in the quarter, down 0.05 from 0.76 percent in the last year period. At the same time, return on equity was at 1.82 percent in the quarter, down 0.17 from 1.99 percent in the last year period.
Investments move up marginally
Investments stood at $18,296.81 million as on Mar. 31, 2017, up 1.79 percent or $321.41 million from year-ago. Meanwhile, yield on investments went up 5 basis points to 0.63 percent in the quarter.
Total debt was at $1,471.18 million as on Mar. 31, 2017, up 6.33 percent or $87.61 million from year-ago. Shareholders equity stood at $8,184.85 million as on Mar. 31, 2017, up 5.32 percent or $413.11 million from year-ago. As a result, debt to equity ratio was almost stable at 0.18 percent in the quarter, when compared with the last year period.
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