Odyssey Re’s 2006 Q1 COR increases

Odyssey Re Holdings Corp. (NYSE: ORH) reported investment and net income increases for 2006 Q1, as well as a significant improvement in its combined operating ratio (COR) over the same period last year.

Odyssey Re reported net income available to common shareholders of US$149.7 million for 2006 Q1, compared to US$33.7 million last year.

The company’s COR of 91.8% in the first quarter of 2006 marked a significant difference compared to the COR of 100.3% for 2005 Q1.

Commenting on the first quarter, Andrew A. Barnard, Odyssey Re’s president and CEO, said: “During the quarter, we achieved solid underwriting and investment performance, resulting in 7.7% growth in book value per share. As the year progresses, we will continue to optimize our portfolio mix to capture the most attractive return opportunities, which is expected to lead to lower overall reinsurance premiums.

The reinsurer reported gross premiums written of US$592.8 million during 2006 Q1, a decrease of 12% over the Q1 of 2005. Net premiums earned were US$553.5 million, a decrease of 1.9% over 2005 Q1.

Net investment income (excluding realized capital gains of an equity investee) amounted to US$59.5 million, an increase of 49.5% over first quarter 2005.