Issue link: http://www.e-digitaleditions.com/i/826230
TMR 2016 Annual Repor t | 04 YCUCPQVJGTRTQƒVCDNG[GCTHQT6/4+PEJCNNGPIKPIOCTMGVEQPFKVKQPU we achieved a net income of USD 120.7 million for the year compared to USD 107.8 million in 2015. This resulted in a return on equity of 9.2% compared VQKP7PFGTYTKVKPIKPEQOGDGPGƒVGFHTQOCEQPVKPWKPIFKUEKRNKPGF underwriting approach and prudent reserving practice. In addition, our results DGPGƒVGFHTQOUVTQPIEQPVTKDWVKQPUHTQOKPXGUVOGPVKPEQOGHQTGKIPGZEJCPIG gains and active cost control. SOLID UNDERWRITING PERFORMANCE BASED ON DISCIPLINED UNDERWRITING The overall underwriting performance remained solid in 2016, delivering a net underwriting income of USD 156.1 million. The decrease of 10.8% compared to 2015 stemmed primarily from higher cat loss activity this year compared to 2015. The disciplined underwriting efforts were noticeable at the top line premium level. Gross written premium for 2016 remained stable at USD 1.5 billion. The combined ratio YCUDGPGƒVKPIHTQOVJGTGNCVKXGCDUGPEGQHNCTIGPCVWTCNECVCUVTQRJGGXGPVUKP the year and net prior year reserve releases equating to 3.2 loss ratio points. We utilised some of these positive gains to bolster current year reserves, maintaining our prudent stance in that regard. TMR RESULTS AIDED BY INVESTMENT RETURNS AND FOREIGN EXCHANGE GAINS Our 2016 result was more positive thanks to an investment income return of USD 60.9 million, contributing 50% of our net income after tax, compared to USD 35.3 million in 2015. The investment income increased by 72% compared to prior year primarily due to increased investment leverage on our balance sheet and an increased allocation to higher yielding assets. TMR also recorded a foreign exchange gain of 75&OKNNKQPHQTVJG[GCTYJKEJGPJCPEGFVJGDQVVQONKPGUKIPKƒECPVN[6JKUYCU in large part due to the appreciation of USD against GBP following the UK's vote to leave the European Union. M E S S A G E F R O M T H E C F O The 2016 results reflect our careful underwriting approach, a successful investment strategy and disciplined cost management.