(RTTNews) - Friday, property and casualty insurance provider OneBeacon Insurance Group, Ltd. (OB: News ), reported a swing to profit in the third quarter from a year ago, reflecting higher net realized and unrealized investment gains from last year. Earnings for the quarter came in short of analysts' consensus estimate.

For the third quarter, Minnetonka, Minnesota-based OneBeacon's net income attributable to the company's shareholders was $108.6 million or $1.14 per share, compared to a net loss of $210.3 million or $2.21 per share in the year ago quarter.

Operating income for the quarter increased to $32.2 million or $0.34 per share from $21.1 million or $0.22 per share in the year earlier period.

On average, seven analysts polled by Thomson Reuters expected the company to earn $0.40 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.

Quarterly revenues rose to $650.5 million from $162.8 million in the same quarter last year.

Net investment income for the quarter was $34.4 million, compared to $43.1 million last year. Net realized and unrealized investment gains for the quarter was $117.6 million, compared to net realized and unrealized investment losses of $355.9 million in the year ago quarter.

Premiums earned for the quarter increased to $492.6 million from $471.2 million in the prior year quarter. Net written premiums for the quarter decreased to $504 million from $534 million in the year earlier period.
OneBeacon's book value per share for the quarter rose 8.4% to $14.44. Combined ratio for the quarter was 97.2%, down from 99.8% in the year-earlier period, reflecting lower catastrophe losses and continued favorable net loss reserve development in Specialty Lines and Commercial Lines.

Chief Executive Officer, Mike Miller, OneBeacon said, "We are pleased with our third quarter results, which produced 8% growth in our book value per share. These results were driven by a solid 4% investment return and 97% combined ratio."

For the nine-month period, net income attributable to OneBeacon's shareholders were $269.6 million or $2.83 per share, compared to net loss of $210.8 million or $2.19 per share last year. Operating income for the period increased to $114.2 million or $1.20 per share from $58.3 million or $0.61 per share in the prior year period.

Revenues for nine months climbed to $1.82 billion from $1.12 billion in the corresponding period last year.

OB is currently trading at $12.33, down $0.58 or 4.49%, on a volume of 0.11 million shares on the NYSE.

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by RTT Staff Writer

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