Hurricane losses sent Allied World Assurance Holdings Ltd. to a fourth quarter 2005 loss of $23.9 million compared to income of $103 million in the same period of 2004.

The Bermuda-based property and casualty insurer incurred Hurricane Wilma losses of $83 million in the quarter bringing the total incurred property losses from Hurricanes Wilma, Katrina and Rita to $456 million.

The full year loss at AWAC was $159.8 million compared to income of $197.2 million for the year ended December 31, 2004.

?Although we sustained significant losses from these storms, our exposure management and product diversification adequately protected our capital position,? said president and chief executive officer Scott Carmilani.

?We believe that our focus on the primary property market versus underwriting high excess property layers has afforded us less volatility, along with the ability to maintain greater control through a risk-based underwriting approach to catastrophe exposures for each client. ?As a result, we can act upon favourable market conditions or make adjustments as opportunities emerge.?

? Net loss: $23.9 million compared to earnings of $103 million during the fourth quarter last year

? Operating loss: $16.9 million compared to operating income of $100.6 million in the same quarter a year ago

? Gross premiums written: $283.4 million, a 12 percent decrease compared to $323.1 million in the same period a year ago

? Gross premiums written: $1.6 billion, an 8.6 percent decrease compared to $1.7 billion in the same period a year ago

? Net investment income: $50.8 million, a 53 improvement compared to $33.2 million a year ago

? Combined ratio: 119.9 percent compared to 79.2 percent during the same period a year ago

? Shareholders? equity increased to $1.42 billion compared to $2.14 million at the end of 2004