The company reported record quarterly net income of $312 million or $1.67 per share.
This improvement was evidenced in our current accident year combined ratio ex-cats of 88.8% and strong investment income and net investment gains, which contributed to an annualized quarterly return on equity of 20.6%.
Growth in our gross premiums written accelerated through the year, with fourth quarter representing growth of 9.3%.
Similarly, net premiums written grew by 8.2% to approximately $1.8 billion in the quarter.
All lines of business grew in the insurance segment, with the exception of workers' compensation, increasing net premiums written by 7.2% to approximately $1.6 billion.
Professional liability led this growth with 29.6%, followed by commercial auto of 20.6%, other liability of 10.6% and short-tail lines of 2%.
Growth in the reinsurance and Monoline Excess segment was 16.8%, bringing net premiums written to $205 million.
Casualty reinsurance led this growth with 21.2%, followed by 9.3% in property reinsurance and 6% in Monoline Excess.
Rate improvement, along with lower claims frequency and non-cap property losses contributed to our improvement in underwriting income of 44.2% to $165 million.
We recognized $42 million of total catastrophe losses in the quarter or 2.3 loss ratio points, of which, 1.5 loss ratio points relates to COVID-19.
The current quarter's natural cat losses compare favorably with the prior year quarter of $20 million, or 1.2 loss ratio points.
The reported loss ratio was 61.3% in the current quarter, compared with 62.4% in 2019.
Prior year loss reserves developed favorably by $4 million or 0.2 loss ratio points in the current quarter.
Accordingly, our current accident year loss ratio, excluding catastrophes, was 59.2% compared with 61.4% a year ago.
Rounding out the combined ratio, we benefited from an improving expense ratio of 1.3 points to 29.6%.
We continue to benefit from growth in net premiums earned at 5.6%, which outpaced an increase in underwriting expenses of 1.2%.
This contributes a benefit of more than 50 basis points to the expense ratio.
Net investment income for the quarter increased 32% to approximately $181 million.
The increase was driven by investment fund income of $53 million due to market value adjustments and arbitrage trading income of $26 million, in large part coming from investments in special purpose acquisition companies.
In addition, we continue to maintain a cash and cash equivalent position of approximately $2.4 billion, enabling us to maintain a relatively short duration of 2.4 years and significant liquidity.
Pre-tax net investment gains in the quarter of $163 million is primarily attributable to realized gains of $127 million and changes in unrealized gains on equity securities of $36 million.
As previously announced, the realized gain was largely driven by the sale of a real estate investment in New York City, which resulted in a gain of $105 million.
In the quarter, our unrealized currency translation loss improved by $66 million, resulting in a net equity pick up of approximately $47 million.
As a reminder, expenses included a non-recurring cost of $8.4 million relating to the redemption of our $350 million subordinated debentures in the quarter.
Stockholders equity increased 5.3% in the quarter and book value per share before share repurchases and dividends increased 6.1%.
We ended the year with more than $6.3 billion in stockholders equity, after share repurchases of approximately 6.4 million shares for $346 million at an average price per share of $54.43 and ordinary dividends totaling $84 million.
That brings total return to shareholders of $430 million in the year.
Finally, the company had strong cash flow from operations in the quarter of $480 million and more than $1.6 billion for the full year, an increase of more than 41%.
When we look at the marketplace, is it what we saw at least at this stage in ‘86.
And whether it will prove to be similar to what we saw in sort of late 2001 and 2002 and 2003, we’ll only see with the time, but the reality is no cycle looks like any other cycle.
As you may have picked up in the release ex-comp, we got 15.5-ish points of rate.
In the quarter, if you go back a year earlier to Q4 2019, we were getting just shy of 9 points of rate, Q4 2018, 4 points of rate, Q4 2017, 2.3, Q4 2016, we got a point of rate.
Turning to our quarter, as Rich referenced, pretty healthy growth on the top-line, the growth was up about 9%, the net was up about 8%.
So you're getting 15 points a rate in this quarter or so.
One, the 15 basis points benefit, if you will, that the expense ratio is getting as a result of a reduction of activity on our end with travel and entertainment, and so on.
Penciling in on average, give or take 25 million a quarter is what we've suggested to people in the past.
As we have suggested to people there are going to be moments when the funds do great, there are going to be moments where the funds are lagging a little bit but on average, we suggested that people pencil in high teens, call it 20 million a quarter.
Rich mentioned and I know we've talked about this last quarter how the duration is sitting there at about 2.4 years.
But the simple fact is that if you move rates up, call it our modeling 100 basis points or so, the impact on a quarterly basis, we will pick up after-tax give or take maybe $5 million.
But if you move rates up 100 basis points, the impact on book value will be approximately $160 million.

Summary:
The company reported record quarterly net income of $312 million or $1.67 per share.
Growth in our gross premiums written accelerated through the year, with fourth quarter representing growth of 9.3%.