Transatlantic Holdings Beats on Top and Bottom Line (TRH)

Transatlantic Holdings Inc. TRH reports Q2 earnings of $1.70 versus estimates of $1.68. Transatlantic Holdings Inc. reports Q2 revenues of $1.1 billion versus $996.60 million. Net premiums written were $947.6 million, declining 4% year over year, excluding the impact of foreign exchange. Net operating cash flow of was $183 million. Book value per common share is now $63.53 as of June 30, 2010, an increase of 2.5% during the quarter. Second quarter 2010 net income and net operating income include $27 million of pre-tax net costs related to significant catastrophe events, including $14 million attributable to the Deepwater Horizon explosion and additional costs associated with events occurring in earlier periods, principally the earthquake in Chile. Catastrophe costs in the second quarter of 2009 were insignificant. Commenting on results, Robert F. Orlich, President and Chief Executive Officer, said, "Transatlantic performed well in the quarter. We grew book value per share by 2.5% and achieved an annualized GAAP ROE of 11%, based on second quarter net income. Our operations were strong and the impact of 2010 catastrophe events modest. He added, "In this challenging market environment, we continue to pursue favorable opportunities in segments that coincide with our traditional strengths, while fine tuning our book to emphasize business that meets our margin requirements. Utilizing our broad expertise, local market presence and strict underwriting discipline, we continue to capitalize on quality business opportunities across the globe." Shares of TRH are bid lower in the after-hours.