Allied World Reports Strong 4th Quarter 2011 Results; Grows Diluted Book Value per Share 8% in 2011
ZUG, Switzerland, February 15, 2012 /PRNewswire/ --
Allied World Assurance Company Holdings, AG (NYSE: AWH) today reported operating income of $94.7 million, or $2.40 per diluted share, for the fourth quarter of 2011 compared to operating income of $97.3 million, or $2.24 per diluted share, for the fourth quarter of 2010. Operating income for the year ended December 31, 2011 was $183.7 million, or $4.63 per diluted share, compared to operating income of $397.8 million, or $7.97 per diluted share, for the year ended December 31, 2010.
The company reported net income of $183.1 million, or $4.63 per diluted share, for the fourth quarter of 2011 compared to net income of $92.8 million, or $2.13 per diluted share, for the fourth quarter of 2010. Net income for the year ended December 31, 2011 was $274.5 million, or $6.92 per diluted share, compared to net income of $665.0 million, or $13.32 per diluted share, for the year ended December 31, 2010.
President and Chief Executive Officer Scott Carmilani commented, "In the face of a number of challenges that confronted our company and the insurance industry globally, Allied World continues to generate solid profitability and growth in book value. Our three operating segments all contributed, with each experiencing premium growth in 2011. We again benefited from focusing our efforts on targeted lines and select geographies throughout the world. Collectively, our gross production was up by 10% for the year with our new business initiatives driving the increase."
"The company had a strong fourth quarter of 2011, producing operating income of $95 million and net income of $183 million. For the full year, we made $275 million in net income in spite of it being the costliest catastrophe year in history. We benefited from continued favorable loss reserve emergence that significantly offset our catastrophe losses for the year as well as from a merger breakup fee. The investment returns underperformed 2010 due to lower interest rates and a weaker overall investment environment."
Mr. Carmilani concluded, "Ultimately, we judge ourselves by our ability to build shareholder value, and we grew diluted book value per share by 8% in what was a volatile 2011. This reflects our robust risk management controls, strong ratings and a healthy capital base. The company is well positioned as we move forward into 2012."
Underwriting Results
Gross premiums written were $416.5 million in the fourth quarter of 2011, a 9.1% increase compared to $381.9 million in the fourth quarter of 2010. For the year ended December 31, 2011, gross premiums written totaled $1,939.5 million, a 10.3% increase compared to $1,758.4 million for the year ended December 31, 2010. Net premiums written were $306.8 million in the fourth quarter of 2011, a 6.8% increase compared to $287.2 million in the fourth quarter of 2010. For the year ended December 31, 2011, net premiums written totaled $1,533.8 million, a 10.1% increase compared to $1,392.5 million for the year ended December 31, 2010.
The combined ratio was 83.5% in the fourth quarter of 2011 compared to 82.8% in the fourth quarter of 2010. The loss and loss expense ratio was 53.9% in the fourth quarter of 2011 compared to 46.7% in the fourth quarter of 2010. During the fourth quarter of 2011, the company recorded net favorable reserve development on prior loss years of $92.4 million. This favorable reserve development resulted in a benefit of 23.4 percentage points to the company's loss and loss expense ratio for the quarter. This compares to the fourth quarter of 2010, where the company recorded net favorable reserve development on prior loss years of $73.9 million, a benefit of 21.6 percentage points to the company's loss and loss expense ratio for that quarter. Absent these adjustments, the loss and loss expense ratio for the fourth quarter of 2011 was 77.3% compared to 68.3% for the fourth quarter of 2010. The fourth quarter 2011 loss and loss expense ratio was impacted by $59.1 million of net losses, or 14.9 percentage points, from the flooding in Thailand that occurred in the fourth quarter of 2011 and from other catastrophes that occurred earlier in 2011. These catastrophe losses were comprised of $23.6 million from our international insurance segment and $35.8 million from our reinsurance segment and were modestly offset by a $0.3 million reduction for prior quarter catastrophe losses recorded in our U.S. insurance segment. The fourth quarter 2010 loss and loss expense ratio was impacted by $21.4 million of net losses, or 6.2 percentage points, from major loss events occurring during 2010.
For the year ended December 31, 2011, the combined ratio was 95.9% compared to 84.9% for the year ended December 31, 2010. For the year ended December 31, 2011, the company recorded net favorable reserve development on prior loss years of $253.5 million, a benefit of 17.4 percentage points to the company's loss and loss expense ratio. For the year ended December 31, 2010, the company recorded net favorable reserve development on prior loss years of $313.3 million, a benefit of 23.1 percentage points to the company's loss and loss expense ratio. Absent prior year reserve adjustments, the loss and loss expense ratio related to 2011 was 83.2% compared to 75.2% for 2010. The 2011 loss and loss expense ratio was impacted by $292.2 million of net losses, or 20.1 percentage points, from global catastrophes occurring during 2011. This compares to 2010 which was impacted by $164.6 million of net losses, or 12.1 percentage points, from major loss events occurring during 2010.
The company's expense ratio was 29.6% for the fourth quarter of 2011 compared to 36.1% for the fourth quarter of 2010. The expense ratio was 30.1% for the year ended December 31, 2011 compared to 32.8% for the year ended December 31, 2010. The decreases in these ratios for the three months and year ended December 31, 2011 were driven by increases in earned premiums and decreases in performance-based incentive compensation expenses. In 2010, we also incurred one-time expenses in connection with our redomestication to Switzerland.
Investment Results
The total return on the company's investment portfolio for the three months and year ended December 31, 2011 was 0.9% and 2.0%, respectively. See the table below for the components of our investment returns for the three months and year ended December 31, 2011:
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG FINANCIAL STATEMENT PORTFOLIO RETURN (expressed in thousands of THREE MONTHS ENDED YEAR ENDED U.S. Dollars) DECEMBER 31, 2011 DECEMBER 31, 2011 Net investment income $ 45,489 $ 195,948 Net realized investment gains 31,632 10,077 Decrease in unrealized investment gains (3,297) (45,686) Net investment income, realized gains and unrealized gains $ 73,824 $ 160,339 Average invested assets $ 8,062,561 $ 7,902,633 Financial statement portfolio return 0.9% 2.0% Note: net investment income, net realized gains/losses and change in unrealized gains/losses are disclosed on a pre-tax basis.
Other Income
Other income for the three months and year ended December 31, 2011 was $66.7 million and $101.7 million, respectively. This represented the termination fee resulting from our previously announced merger agreement with Transatlantic Holdings, Inc., which was terminated on September 15, 2011. Given the non-recurring nature of this item, it has been excluded from the computation of the company's operating returns.
Shareholders' Equity
As of December 31, 2011, our total shareholders' equity was $3,149.0 million, compared to $3,075.8 million as of December 31, 2010.
The company's annualized net income return on average shareholders' equity for the three months and year ended December 31, 2011 was 23.9% and 8.9%, respectively. The company's annualized operating return on average shareholders' equity for the three months and year ended December 31, 2011 was 12.4% and 6.0%, respectively.
As of December 31, 2011, diluted book value per share was $80.11, an increase of 5.7% and 7.8% compared to $75.82 and $74.29, respectively, as of September 30, 2011 and December 31, 2010.
Share Repurchase Program
During the fourth quarter 2011, the company repurchased 450,000 of its common shares through its share repurchase program in the open market at an average repurchase price of $59.33 per share for an aggregate cost of $26.7 million. For the year ended December 31, 2011, the company repurchased 1,419,163 of its common shares through its program in the open market at an average repurchase price of $61.09 per share for an aggregate cost of $86.7 million. As of December 31, 2011, the company had $174.2 million of remaining capacity available under its share repurchase program.
Investment Supplement
Allied World will be providing additional information on its investment portfolio as of December 31, 2011. This information will be available at the "Investor Relations" section of the company's website at http://www.awac.com.
Financial Supplement
A financial supplement relating to the fourth quarter and year ended December 31, 2011 will be available at the "Investor Relations" section of the company's website at http://www.awac.com.
Conference Call
Allied World will host a conference call on Thursday, February 16, 2012 at 9:00 a.m. (Eastern Time) to discuss the results for the fourth quarter and year ended December 31, 2011. The public may access a live webcast of the conference call at the "Investor Relations" section of the company's website at http://www.awac.com. In addition, the conference call can be accessed by dialing (866) 843-0890 (U.S. and Canada callers) or +1-412-317-9250 (international callers) and entering the passcode 6211936 approximately ten minutes prior to the call.
Following the conclusion of the presentation, a replay of the call will be available through Thursday, March 1, 2012 by dialing (877) 344-7529 (U.S. and Canada callers) or +1-412-317-0088 (international callers) and entering the passcode 10008556. In addition, the webcast will remain available online through Thursday, March 1, 2012 at http://www.awac.com.
Non-GAAP Financial Measures
In presenting the company's results, management has included and discussed in this press release certain non-generally accepted accounting principles ("non-GAAP") financial measures within the meaning of Regulation G as promulgated by the U.S. Securities and Exchange Commission. Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain the company's results of operations in a manner that allows for a more complete understanding of the underlying trends in the company's business. However, these measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles ("U.S. GAAP").
"Operating income" is an internal performance measure used in the management of the company's operations and represents after-tax operational results excluding, as applicable, net realized investment gains or losses, net impairment charges recognized in earnings, net foreign exchange gain or loss and impairment of intangible assets, and other non-recurring items. The company excludes net realized investment gains or losses, net impairment charges recognized in earnings, net foreign exchange gain or loss, and other non-recurring items from the calculation of operating income because these amounts are heavily influenced by and fluctuate in part according to the availability of market opportunities and other factors. The company excludes impairment of intangible assets as these are non-recurring charges. In addition to presenting net income determined in accordance with U.S. GAAP, the company believes that showing operating income enables investors, analysts, rating agencies and other users of the company's financial information to more easily analyze our results of operations and underlying business performance. Operating income should not be viewed as a substitute for U.S. GAAP net income.
The company has included "diluted book value per share" because it takes into account the effect of dilutive securities; therefore, the company believes it is an important measure of calculating shareholder returns.
"Annualized net income return on average shareholders' equity" ("ROAE") is calculated using average shareholders' equity, excluding the average after tax unrealized gains (or losses) on investments. Unrealized gains (losses) on investments are primarily the result of interest rate and credit spread movements and the resultant impact on fixed income securities. Such gains (losses) are not related to management actions or operational performance, nor are they likely to be realized. Therefore, the company believes that excluding these unrealized gains (losses) provides a more consistent and useful measurement of operating performance, which supplements U.S. GAAP information. In calculating ROAE, the net income (loss) available to shareholders for the period is multiplied by the number of such periods in a calendar year in order to arrive at annualized net income (loss) available to shareholders. The company presents ROAE as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information.
"Annualized operating return on average shareholders' equity" is calculated using operating income (as defined above and annualized in the manner described for net income (loss) available to shareholders under ROAE above), and average shareholders' equity, excluding the average after tax unrealized gains (losses) on investments. Unrealized gains (losses) are excluded from equity for the reasons outlined in the annualized net income return on average shareholders' equity explanation above.
Reconciliations of these financial measures to their most directly comparable U.S. GAAP measures are included in the attached tables.
About Allied World Assurance Company
Allied World Assurance Company Holdings, AG, through its subsidiaries, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions, offering superior client service through a global network of offices and branches. All of Allied World's rated insurance and reinsurance subsidiaries are rated A by A.M. Best Company, A by Standard & Poor's, and A2 by Moody's, and our Lloyd's Syndicate 2232 is rated A+ by Standard & Poor's and Fitch. Please visit http://www.awac.com for further information on Allied World.
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this press release reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, our forward-looking statements could be affected by pricing and policy term trends; increased competition; the impact of acts of terrorism and acts of war; greater frequency or severity of unpredictable catastrophic events; negative rating agency actions; the adequacy of our loss reserves; the company or its subsidiaries becoming subject to significant income taxes in the United States or elsewhere; changes in regulations or tax laws; changes in the availability, cost or quality of reinsurance or retrocessional coverage; adverse general economic conditions; and judicial, legislative, political and other governmental developments, as well as management's response to these factors, and other factors identified in our filings with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We are under no obligation (and expressly disclaim any such obligation) to update or revise any forward-looking statement that may be made from time to time, whether as a result of new information, future developments or otherwise.
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in thousands of United States dollars, except share and per share amounts) Quarter Ended Year Ended December 31, December 31, 2011 2010 2011 2010 Revenues: Gross premiums written $ 416,537 $ 381,942 $ 1,939,521 $ 1,758,397 Premiums ceded (109,705) (94,743) (405,755) (365,942) Net premiums written 306,832 287,199 1,533,766 1,392,455 Change in unearned premiums 88,637 55,605 (76,774) (32,907) Net premiums earned 395,469 342,804 1,456,992 1,359,548 Net investment income 45,489 50,168 195,948 244,143 Net realized investment gains (losses) 31,632 (3,738) 10,077 285,612 Net impairment charges recognized in earnings - - - (168) Other income 66,744 - 101,744 913 Total revenue 539,334 389,234 1,764,761 1,890,048 Expenses: Net losses and loss expenses 213,345 160,019 959,156 707,883 Acquisition costs 46,562 38,848 167,295 159,489 General and administrative expenses 70,492 85,134 271,656 286,557 Amortization and impairment of intangible assets 678 808 2.978 3.483 Interest expense 13,754 11,650 54,989 40.242 Foreign exchange (gain) loss (549) 196 3,159 444 Total expenses 344,282 296,655 1,459,233 1,198,098 Income before income taxes 195,052 92,579 305,528 691,950 Income tax expense (benefit) 11,952 (207) 30,980 26,945 NET INCOME $ 183.100 $ 92.786 $ 274.548 $ 665.005 PER SHARE DATA: Basic earnings per share $ 4.80 $ 2.30 $ 7.21 $ 14.30 Diluted earnings per share $ 4.63 $ 2.13 $ 6.92 $ 13.32 Weighted average common shares outstanding 38,138,558 40,291,620 38,093,351 46,491,279 Weighted average common shares and common share equivalents outstanding 39,524,273 43,501,068 39,667,905 49,913,317 Dividends paid per share $ 0.375 $ 0.45 $ 0.75 $ 1.05
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Expressed in thousands of United States dollars, except share and per share amounts) As of As of December 31, December 31, ASSETS: 2011 2010 Fixed maturity investments available for sale, at fair value (amortized cost: 2011: $226,397; 2010: $828,544) $ 244,016 $ 891,849 Fixed maturity investments trading, at fair value (amortized cost: 2011: $6,207,991; 2010: $5,714,322) 6,254,686 5,769,097 Equity securities trading, at fair value (cost: 2011: $356,370; 2010: $160,513) 367,483 174,976 Other invested assets trading, at fair value 540,409 347,632 Total investments 7,406,594 7,183,554 Cash and cash equivalents 716,604 853,368 Insurance balances receivable 652,158 529,927 Prepaid reinsurance 226,721 187,287 Reinsurance recoverable 1,002,919 927,588 Accrued investment income 38,263 40,520 Net deferred acquisition costs 100,334 96,803 Goodwill 268,376 268,376 Intangible assets 53,898 56,876 Net deferred tax assets 22,646 19,740 Other assets 53,202 75,184 Total assets $ 10,541,715 $ 10,239,223 LIABILITIES: Reserve for losses and loss expenses $ 5,225,143 $ 4,879,188 Unearned premiums 1,078,412 962,203 Reinsurance balances payable 124,539 99,732 Net balances payable on purchases and sales of investments 36,285 318,570 Dividends payable 14,302 - Senior notes 797,949 797,700 Accounts payable and accrued liabilities 116,063 106,010 Total liabilities $ 7,392,693 $ 7,163,403 SHAREHOLDERS' EQUITY: Common shares: 2011: par value CHF 14.03 per share and 2010: par value CHF 15.00 per share (2011: 40,003,642; 2010: 40,003,642 shares issued and 2011: 37,742,131; 2010: 38,089,226 shares outstanding) 557,153 600,055 Additional paid-in capital 78,225 170,239 Treasury shares, at cost (2011: 2,261,511; 2010: 1,914,416) (136,590) (112,811) Retained earnings 2,635,750 2,361,202 Accumulated other comprehensive income, net of tax 14,484 57,135 Total shareholders' equity 3,149,022 3,075,820 Total liabilities and shareholders' equity $ 10,541,715 $ 10,239,223
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG UNAUDITED CONSOLIDATED SEGMENT DATA (Expressed in thousands of United States dollars, except for ratio information) Quarter Ended U.S. International December 31, 2011 Insurance Insurance Reinsurance Total Gross premiums written $ 227,005 $ 130,920 $ 58,612 $ 416,537 Net premiums written 169,097 79,813 57,922 306,832 Net premiums earned 152,491 80,585 162,393 395,469 Net losses and loss expenses (92,953) (19,661) (100,731) (213,345) Acquisition costs (18,449) (165) (27,948) (46,562) General and administrative expenses (33,437) (21,351) (15,704) (70,492) Underwriting income 7,652 39,408 18,010 65,070 Net investment income 45,489 Net realized investment gains 31,632 Other income - termination fee 66,744 Amortization and impairment of intangible assets (678) Interest expense (13,754) Foreign exchange gain 549 Income before income taxes $ 195,052 GAAP Ratios: Loss and loss expense ratio 61.0% 24.4% 62.0% 53.9% Acquisition cost ratio 12.1% 0.2% 17.2% 11.8% General and administrative expense ratio 21.9% 26.5% 9.7% 17.8% Combined ratio 95.0% 51.1% 88.9% 83.5% Quarter Ended U.S. International December 31, 2010 Insurance Insurance Reinsurance Total Gross premiums written $ 196,287 $ 115,056 $ 70,599 $ 381,942 Net premiums written 143,789 73,973 69,437 287,199 Net premiums earned 133,930 81,764 127,110 342,804 Net losses and loss expenses (74,750) (27,084) (58,185) -(160,019) Acquisition costs (16,902) 431 (22,377) (38,848) General and administrative expenses (38,978) (26,905) (19,251) (85,134) Underwriting income 3,300 28,206 27,297 58,803 Net investment income 50,168 Net realized investment losses (3,738) Amortization and impairment of intangible assets (808) Interest expense (11,650) Foreign exchange loss (196) Income before income taxes $ 92,579 GAAP Ratios: Loss and loss expense ratio 55.8% 33.1% 45.8% 46.7% Acquisition cost ratio 12.6% (0.5%) 17.6% 11.3% General and administrative expense ratio 29.1% 32.9% 15.1% 24.8% Combined ratio 97.5% 65.5% 78.5% 82.8%
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG UNAUDITED CONSOLIDATED SEGMENT DATA (Expressed in thousands of United States dollars, except for ratio information) Year Ended U.S. International December 31, 2011 Insurance Insurance Reinsurance Total Gross premiums written $ 838,567 $ 530,450 $ 570,504 $ 1,939,521 Net premiums written 639,196 325,094 569,476 1,533,766 Net premiums earned 584,303 317,006 555,683 1,456,992 Net losses and loss expenses (387,099) (206,593) (365,464) (959,156) Acquisition costs (74,976) 2,781 (95,100) (167,295) General and administrative expenses (124,434) (84,290) (62,932) (271,656) Underwriting (loss) income (2,206) 28,904 32,187 58,885 Net investment income 195,948 Net realized investment gains 10,077 Other income - termination fee 101,744 Amortization and impairment of intangible assets (2,978) Interest expense (54,989) Foreign exchange loss (3,159) Income before income taxes $ 305,528 GAAP Ratios: Loss and loss expense ratio 66.2% 65.2% 65.8% 65.8% Acquisition cost ratio 12.8% (0.9%) 17.1% 11.5% General and administrative expense ratio 21.3% 26.6% 11.3% 18.6% Combined ratio 100.3% 90.9% 94.2% 95.9% Year Ended U.S. International December 31, 2010 Insurance Insurance Reinsurance Total Gross premiums written $ 729,267 $ 504,937 $ 524,193 $ 1,758,397 Net premiums written 551,063 319,083 522,309 1,392,455 Net premiums earned 518,444 338,791 502,313 1,359,548 Other income 913 - - 913 Net losses and loss expenses (297,517) (160,153) (250,213) (707,883) Acquisition costs (67,797) 460 (92,152) (159,489) General and administrative expenses (128,556) (94,226) (63,775) (286,557) Underwriting income 25,487 84,872 96,173 206,532 Net investment income 244,143 Net realized investment gains 285,612 Net impairment charges recognized in earnings (168) Amortization and impairment of intangible assets (3,483) Interest expense (40,242) Foreign exchange loss (444) Income before income taxes $ 691,950 GAAP Ratios: Loss and loss expense ratio 57.4% 47.3% 49.8% 52.1% Acquisition cost ratio 13.1% (0.1%) 18.3% 11.7% General and administrative expense ratio 24.8% 27.8% 12.7% 21.1% Combined ratio 95.3% 75.0% 80.8% 84.9%
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG UNAUDITED OPERATING INCOME RECONCILIATION (Expressed in thousands of United States dollars, except share and per share amounts) Quarter Ended Year Ended December 31, December 31, 2011 2010 2011 2010 Net income $ 183,100 $ 92,786 $ 274,548 $ 665,005 Add after tax affect of: Net realized investment (gains) losses (26,332) 4,306 (213) (267,727) Net impairment charges recognized in earnings - - - 109 Other Income - termination fee (61,538) - (93,808) - Foreign exchange (gain) / loss (549) 196 3,159 444 Operating income $ 94,681 $ 97,288 $ 183,686 $ 397,831 Weighted average common shares outstanding: Basic 38,138,558 40,291,620 38,093,351 46,491,279 Diluted 39,524,273 43,501,068 39,667,905 49,913,317 Basic per share data: Net income $ 4.80 $ 2.30 $ 7.21 $ 14.30 Add after tax affect of: Net realized investment (gains) losses (0.69) 0.11 (0.01) (5,75) Net impairment charges recognized in earnings - - - - Other Income - termination fee (1.62) - (2.46) - Foreign exchange (gain) / loss (0.01) - 0.08 0,01 Operating income $ 2.48 $ 2.41 $ 4.82 $ 8.56 Diluted per share data Net income $ 4.63 $ 2.13 $ 6.92 $ 13.32 Add after tax affect of: Net realized investment (gains) losses (0.67) 0.10 (0.01) (5,36) Net impairment charges recognized in earnings - - - - Other Income - termination fee (1.56) - (2.36) - Foreign exchange (gain) / loss - 0.01 0.08 0,01 Operating income $ 2.40 $ 2.24 $ 4.63 $ 7.97
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG UNAUDITED DILUTED BOOK VALUE PER SHARE RECONCILIATION (Expressed in thousands of United States dollars, except share and per share amounts) As of As of December 31, December 31, 2011 2010 Price per share at period end $ 62.93 $ 59.44 Total shareholders' equity $ 3,149,022 $ 3,075,820 Basic common shares outstanding 37,742,131 38,089,226 Add: unvested restricted share units 249,251 571,178 Add: Performance based equity awards 889,939 1,440,017 Add: employee share purchase plan 11,053 10,576 Add: dilutive options/warrants outstanding 1,525,853 3,272,739 Weighted average exercise price per share $ 45.72 $ 35.98 Deduct: options bought back via treasury method (1,108,615) (1,980,884) Common shares and common share equivalents outstanding 39,309,612 41,402,852 Basic book value per common share $ 83.44 $ 80.75 Diluted book value per common share $ 80.11 $ 74.29
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG UNAUDITED ANNUALIZED RETURN ON SHAREHOLDERS' EQUITY RECONCILIATION (Expressed in thousands of United States dollars, except for percentage information) Quarter Ended December 31, Year Ended December 31, 2011 2010 2011 2010 Opening shareholders' equity $ 3,003,074 $ 3,341,314 $ 3,075,820 $ 3,213,295 Deduct: accumulated other comprehensive income (17,796) (111,760) (57,135) (149,849) Adjusted opening shareholders' equity 2,985,278 3,229,554 3,018,685 3,063,446 - - Closing shareholders' equity $ 3,149,022 $ 3,075,820 $ 3,149,022 $ 3,075,820 Deduct: accumulated other comprehensive income (14,484) (57,135) (14,484) (57,135) Adjusted closing shareholders' equity 3,134,538 3,018,685 3,134,538 3,018,685 Average shareholders' equity $ 3,059,908 $ 3,124,120 $ 3,076,612 $ 3,041,066 Net income available to shareholders $ 183,100 $ 92,786 $ 274,548 $ 665,005 Annualized net income available to shareholders 732,400 371,144 274,548 665,005 Annualized return on average shareholders' equity - net income available to shareholders 23.9% 11.9% 8.9% 21.9% Operating income available to shareholders $ 94,681 $ 97,288 $ 183,686 $ 397,831 Annualized operating income available to shareholders 378,724 389,152 183,686 397,831 Annualized return on average shareholders' equity - operating income available to shareholders 12.4% 12.5% 6.0% 13.1%
Share this article