Iowa | 001-34257 | 42-0644327 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
118 Second Avenue, S.E., Cedar Rapids, Iowa | 52407 | |
(Address of principal executive offices) | (Zip Code) |
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit 99.1 | Press Release, dated October 31, 2011, announcing our financial results for the quarter ended September 30, 2011. |
United Fire & Casualty Company | |||
(Registrant) | |||
Dated: | October 31, 2011 | /s/ Randy A. Ramlo | |
Randy A. Ramlo, Chief Executive Officer |
Exhibit Number | Description of Exhibit |
99.1 | Press Release, dated October 31, 2011, announcing our financial results for the quarter ended September 30, 2011. |
• | Net loss of $0.19 per diluted share for the third quarter of 2011, compared with net income per diluted share of $0.11 for the third quarter of 2010; operating loss(1) of $0.22 per share compared with operating income of $0.04 per share. |
• | Book value per share at $26.88, down $0.47 per share or 1.7 percent from December 31, 2010. |
• | Repurchased $6.3 million in company stock in the third quarter, bringing year-to-date total to $12.4 million. |
Financial Highlights | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
(In Thousands Except Shares and Per Share Data) | 2011 | 2010 | Change % | 2011 | 2010 | Change % | |||||||||||||
Revenue Highlights | |||||||||||||||||||
Net premiums earned | $ | 158,704 | $ | 119,158 | 33.2 | % | $ | 425,118 | $ | 350,548 | 21.3 | % | |||||||
Net investment income | 26,926 | 27,084 | (0.6 | ) | 81,730 | 83,343 | (1.9 | ) | |||||||||||
Total revenues | 187,574 | 147,904 | 26.8 | 513,454 | 441,043 | 16.4 | |||||||||||||
Income Statement Data | |||||||||||||||||||
Operating income (loss) (1) | $ | (5,568 | ) | $ | 2,064 | NM | $ | (20,127 | ) | $ | 31,811 | (163.3 | )% | ||||||
After-tax realized investment gains | 792 | 859 | (7.8 | ) | 3,247 | 4,156 | (21.9 | ) | |||||||||||
Net income (loss) | $ | (4,776 | ) | $ | 2,923 | NM | $ | (16,880 | ) | $ | 35,967 | (146.9 | )% | ||||||
Diluted Earnings Per Share Data | |||||||||||||||||||
Operating income (loss) (1) | $ | (0.22 | ) | $ | 0.04 | NM | $ | (0.77 | ) | $ | 1.21 | (163.6 | )% | ||||||
After-tax realized investment gains | 0.03 | 0.07 | (57.1 | ) | 0.12 | 0.15 | (20.0 | ) | |||||||||||
Net income (loss) | $ | (0.19 | ) | $ | 0.11 | NM | $ | (0.65 | ) | $ | 1.36 | (147.8 | )% | ||||||
Catastrophe Data | |||||||||||||||||||
Pre-tax catastrophe losses (1) | $ | 23,697 | $ | 4,705 | NM | $ | 71,025 | $ | 15,431 | NM | |||||||||
Effect on after-tax earnings per share | 0.60 | 0.12 | NM | 1.78 | 0.38 | NM | |||||||||||||
Effect on combined ratio | 16.4 | % | 4.4 | % | NM | 18.5 | % | 4.9 | % | NM | |||||||||
Combined ratio | 115.7 | % | 110.3 | % | 4.9 | % | 119.1 | % | 99.7 | % | 19.5 | % | |||||||
Return on equity | (3.21 | ) | 6.87 | (146.7 | ) | ||||||||||||||
Cash dividends declared per share | $ | 0.15 | $ | 0.15 | — | $ | 0.45 | $ | 0.45 | — | |||||||||
Diluted weighted average shares outstanding | 25,722,572 | 26,323,588 | (2.3 | )% | 26,004,923 | 26,375,895 | (1.4 | )% |
Property & Casualty Insurance Financial Results: | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(In Thousands) | 2011 | 2010 | 2011 | 2010 | |||||||||||
Revenues | |||||||||||||||
Net premiums written (1) | $ | 143,412 | $ | 99,962 | $ | 413,165 | $ | 324,185 | |||||||
Net premiums earned | $ | 144,065 | $ | 106,174 | $ | 384,838 | $ | 313,549 | |||||||
Investment income, net of investment expenses | 8,085 | 7,854 | 26,273 | 25,494 | |||||||||||
Net realized investment gains | |||||||||||||||
Other-than-temporary impairment charges | — | — | — | (153 | ) | ||||||||||
All other net realized gains | 692 | 1,220 | 2,293 | 2,828 | |||||||||||
Total net realized investment gains | 692 | 1,220 | 2,293 | 2,675 | |||||||||||
Other income | 504 | 99 | 1,042 | 116 | |||||||||||
Total Revenues | $ | 153,346 | $ | 115,347 | $ | 414,446 | $ | 341,834 | |||||||
Benefits, Losses and Expenses | |||||||||||||||
Losses and loss settlement expenses | $ | 115,127 | $ | 83,610 | $ | 316,916 | $ | 215,491 | |||||||
Amortization of deferred policy acquisition costs | 40,547 | 25,983 | 105,663 | 75,373 | |||||||||||
Other underwriting expenses | 11,050 | 7,506 | 35,576 | 21,826 | |||||||||||
Total Benefits, Losses and Expenses | $ | 166,724 | $ | 117,099 | $ | 458,155 | $ | 312,690 | |||||||
Income (loss) before income taxes | $ | (13,378 | ) | $ | (1,752 | ) | $ | (43,709 | ) | $ | 29,144 | ||||
Federal income tax expense (benefit) | (6,707 | ) | (2,642 | ) | (20,814 | ) | 2,496 | ||||||||
Net income (loss) | $ | (6,671 | ) | $ | 890 | $ | (22,895 | ) | $ | 26,648 | |||||
GAAP combined ratio: | |||||||||||||||
Net loss ratio | 63.5 | % | 74.4 | % | 63.9 | % | 63.8 | % | |||||||
Catastrophes - effect on net loss ratio | 16.4 | 4.4 | 18.5 | 4.9 | |||||||||||
Net loss ratio | 79.9 | % | 78.8 | % | 82.4 | % | 68.7 | % | |||||||
Expense ratio | 35.8 | 31.5 | 36.7 | 31.0 | |||||||||||
Combined ratio | 115.7 | % | 110.3 | % | 119.1 | % | 99.7 | % | |||||||
Statutory combined ratio: (1) | |||||||||||||||
Net loss ratio | 63.6 | % | 74.4 | % | 63.9 | % | 63.8 | % | |||||||
Catastrophes - effect on net loss ratio | 16.4 | 4.4 | 18.5 | 4.9 | |||||||||||
Net loss ratio | 80.0 | % | 78.8 | % | 82.4 | % | 68.7 | % | |||||||
Expense ratio | 32.7 | 32.2 | 32.2 | 31.1 | |||||||||||
Combined ratio | 112.7 | % | 111.0 | % | 114.6 | % | 99.8 | % |
• | Net premiums written increased 43.5 percent in the three-month period ended September 30, 2011, which is attributable to: |
◦ | Acquisition of Mercer Insurance Group - Total net premiums written increased $43.5 million or 33.1 percent for the quarter. The acquisition of Mercer Insurance Group contributed $33.1 million of the increase, with $28.0 million and $5.1 million, respectively, in our commercial and personal lines. |
◦ | Organic growth - The additional increase in our net premiums written is the result of a combination of controlled single digit rate increases in many of our lines, coupled with the internal growth initiatives we implemented at the beginning of 2011. |
• | Commercial lines - Competitive market conditions eased slightly on renewals, but persisted on new business during the quarter. We were encouraged by commercial pricing trends in the third quarter, which turned slightly positive in small accounts under $10,000 in premium and commercial property business. In the third quarter of 2001, net premiums written, not including Mercer Insurance Group, increased 11.1 percent. Despite the slow economy, exposure unit reductions and out-of-business policy cancellations have slowed in some areas of the country. |
• | Personal lines pricing improved again in the third quarter of 2011, with mid-single digit increases in auto insurance and upper-single digit increases in homeowners insurance. This continues a trend that began over two years ago. |
• | Policy retention rates remained strong for both commercial and personal lines, with approximately 81.0 percent of our policies renewing. |
• | GAAP combined ratio increased by 5.4 percentage points in the three-month period ended September 30, 2011, compared with the same period of 2010. For the nine-month period ended September 30, 2011, our combined ratio increased by 19.4 percentage points as compared to the same period of 2010. These increases are attributable to the following: |
◦ | Losses and loss settlement expenses increased 37.7 percent in the three-month period ended September 30, 2011 and 47.1 percent in the nine-month period ended September 30, 2011, as compared with the same periods in 2010. The primary cause for this deterioration is our direct catastrophe losses in the three-month period ended September 30, 2011, along with severe storm losses that occurred during the second quarter and assumed reinsurance losses related to the New Zealand earthquake and the earthquake and tsunami in Japan that occurred during the first quarter. We continued to see a reduction in legal expenses, which helped keep overall loss settlement expenses flat. |
• | Non-catastrophe claims experience - While a small number of severe workers' compensation losses contributed to the increase in losses and loss settlement expenses, in general, we've seen claims frequency and severity continue their downward trajectory in workers' compensation and other casualty lines during the three-month period ended September 30, 2011. For example, other liability loss and loss settlement expenses decreased significantly because of the reduction in severity and frequency, as well as favorable development on prior year claims. |
• | Acquisition of Mercer Insurance Group - the acquisition of Mercer Insurance Group accounted for $27.7 million and $55.7 million of the increase in loss and loss settlement expenses for the three- and nine-month periods ended September 30, 2011, respectively. |
◦ | Expense ratio, a component of the combined ratio, increased 4.3 percentage points and 5.7 percentage points in the three- and nine-month periods ended September 30, 2011, respectively, as compared to the same periods of 2010. This ratio is higher than our historical expense ratio, which is attributable to: |
• | Other underwriting expenses and amortization of deferred policy acquisition costs together increased 54.1 percent and 45.3 percent in the three- and nine-month periods ended September 30, 2011, respectively, primarily due to an increase in amortization of deferred policy acquisition costs and transaction costs that are related to our acquisition of Mercer Insurance Group. These costs totaled $17.9 million and $45.4 million in the three- and nine-month periods ended September 30, 2011, respectively. Amortization of deferred policy acquisition costs related to Mercer Insurance Group will be higher than normal over the remainder of 2011 and into the first quarter of 2012. Deferred policy acquisition costs are amortized in the first 12 months of operations subsequent to the acquisition, with the majority of costs recorded in the first six months of that period. |
Life Insurance Financial Results: | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(In Thousands) | 2011 | 2010 | 2011 | 2010 | |||||||||||
Revenues | |||||||||||||||
Net premiums written (1) | $ | 14,624 | $ | 12,950 | $ | 40,226 | $ | 36,912 | |||||||
Net premiums earned | $ | 14,639 | $ | 12,984 | $ | 40,280 | $ | 36,999 | |||||||
Investment income, net of investment expenses | 18,841 | 19,230 | 55,457 | 57,849 | |||||||||||
Net realized investment gains | |||||||||||||||
Other-than-temporary impairment charges | — | — | — | (306 | ) | ||||||||||
All other net realized gains | 527 | 102 | 2,703 | 4,025 | |||||||||||
Total net realized investment gains | 527 | 102 | 2,703 | 3,719 | |||||||||||
Other income | 221 | 241 | 568 | 642 | |||||||||||
Total Revenues | $ | 34,228 | $ | 32,557 | $ | 99,008 | $ | 99,209 | |||||||
Benefits, Losses and Expenses | |||||||||||||||
Losses and loss settlement expenses | $ | 5,734 | $ | 5,702 | $ | 15,938 | $ | 14,941 | |||||||
Increase in liability for future policy benefits | 9,167 | 7,218 | 25,229 | 20,983 | |||||||||||
Amortization of deferred policy acquisition costs | 2,475 | 2,508 | 7,137 | 7,556 | |||||||||||
Other underwriting expenses | 3,051 | 2,962 | 9,302 | 8,828 | |||||||||||
Interest on policyholders’ accounts | 10,897 | 10,923 | 32,224 | 32,371 | |||||||||||
Total Benefits, Losses and Expenses | $ | 31,324 | $ | 29,313 | $ | 89,830 | $ | 84,679 | |||||||
Income before income taxes | $ | 2,904 | $ | 3,244 | $ | 9,178 | $ | 14,530 | |||||||
Federal income tax expense | 1,009 | 1,211 | 3,163 | 5,211 | |||||||||||
Net income | $ | 1,895 | $ | 2,033 | $ | 6,015 | $ | 9,319 |
• | Net income decreased 6.8 percent and 35.5 percent in the three- and nine-month periods ended September 30, 2011, respectively, as compared to the same periods of 2010, which is attributable to decreased investment results and an increase in future policy benefits, which were somewhat offset by an increase in net premiums earned. |
◦ | Net premiums earned increased 12.8 percent and 8.9 percent in the three- and nine-month periods ended September 30, 2011, respectively, as compared to the same periods of 2010. This was driven by our effort to increase sales of our single premium whole life product and an increase in single premium immediate annuity products by one of our new agencies. |
◦ | Investment income decreased 2.0 percent and 4.1 percent in the three- and nine-month periods ended September 30, 2011, compared to the same periods of 2010, due to historically low investment yields. As our fixed maturity securities were called or matured, we were unable to obtain the same level of return on the reinvestment of these funds. |
◦ | Loss and loss settlement expenses increased 0.6 percent and 6.7 percent in the three- and nine-month periods ended September 30, 2011, compared to the same periods of 2010, due to an increase in both immediate annuity benefits and traditional life insurance death benefits. |
◦ | Increase in liability for future policy benefits increased 27.0 percent and 20.2 percent in the three- and nine-month periods ended September 30, 2011, compared to the same period of 2010, due to the demographics of our insureds. |
• | Deferred annuity sales increased 56.2 percent and 24.5 percent in the three- and nine-month periods ended September 30, 2011, respectively, as compared with the same periods of 2010. We attribute the increase to two reasons: First, consumers seeking products with guaranteed rates of return as equity markets remain volatile. Second, a new agency that began writing more deferred annuities with us in the second quarter continued this activity in the third quarter. We are also working to increase production of life sales and anticipate that this new agency will also play a part in that effort. While deferred annuity deposits are not recorded as a component of net premiums written or net premiums earned, they do generate investment income. |
• | Net cash inflow related to our annuity business was $19.5 million and $16.9 million in the three- and nine-month periods ended September 30, 2011, respectively, compared to $5.9 million and $4.3 million in the same periods of 2010. We attribute this to the activity described above. |
(In Thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Net premiums written | $ | 158,036 | $ | 112,912 | $ | 453,391 | $ | 361,097 | |||||||
Net change in unearned premium | 1,843 | 6,329 | (27,700 | ) | (10,552 | ) | |||||||||
Net change in prepaid reinsurance premium | (1,175 | ) | (83 | ) | (573 | ) | 3 | ||||||||
Net premiums earned | $ | 158,704 | $ | 119,158 | $ | 425,118 | $ | 350,548 |
(In Thousands Except Per Share Data) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Net income (loss) | $ | (4,776 | ) | $ | 2,923 | $ | (16,880 | ) | $ | 35,967 | |||||
After-tax realized investment gains | (792 | ) | (859 | ) | (3,247 | ) | (4,156 | ) | |||||||
Operating income (loss) | $ | (5,568 | ) | $ | 2,064 | $ | (20,127 | ) | $ | 31,811 | |||||
Diluted earnings (loss) per share | (0.19 | ) | 0.11 | (0.65 | ) | 1.36 | |||||||||
Diluted operating income (loss) per share | (0.22 | ) | 0.04 | (0.77 | ) | 1.21 |
(In Thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
ISO catastrophes (1) | $ | 20,169 | $ | 4,015 | $ | 53,061 | $ | 14,588 | |||||||
Non-ISO catastrophes (2) | 3,528 | 690 | 17,964 | 843 | |||||||||||
Total catastrophes | $ | 23,697 | $ | 4,705 | $ | 71,025 | $ | 15,431 |
Income Statement: | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(In Thousands) | 2011 | 2010 | 2011 | 2010 | |||||||||||
Revenues | |||||||||||||||
Net premiums written (1) | $ | 158,036 | $ | 112,912 | $ | 453,391 | $ | 361,097 | |||||||
Net premiums earned | $ | 158,704 | $ | 119,158 | $ | 425,118 | $ | 350,548 | |||||||
Investment income, net of investment expenses | 26,926 | 27,084 | 81,730 | 83,343 | |||||||||||
Realized investment gains | |||||||||||||||
Other-than-temporary impairment charges | — | — | — | (459 | ) | ||||||||||
All other realized gains | 1,219 | 1,322 | 4,996 | 6,853 | |||||||||||
Total realized investment gains | 1,219 | 1,322 | 4,996 | 6,394 | |||||||||||
Other income | 725 | 340 | 1,610 | 758 | |||||||||||
Total Revenues | $ | 187,574 | $ | 147,904 | $ | 513,454 | $ | 441,043 | |||||||
Benefits, Losses and Expenses | |||||||||||||||
Losses and loss settlement expenses | $ | 120,861 | $ | 89,312 | $ | 332,854 | $ | 230,432 | |||||||
Increase in liability for future policy benefits | 9,167 | 7,218 | 25,229 | 20,983 | |||||||||||
Amortization of deferred policy acquisition costs | 43,022 | 28,491 | 112,800 | 82,929 | |||||||||||
Other underwriting expenses | 14,101 | 10,468 | 44,878 | 30,654 | |||||||||||
Interest on policyholders’ accounts | 10,897 | 10,923 | 32,224 | 32,371 | |||||||||||
Total Benefits, Losses and Expenses | $ | 198,048 | $ | 146,412 | $ | 547,985 | $ | 397,369 | |||||||
Income (loss) before income taxes | (10,474 | ) | 1,492 | (34,531 | ) | 43,674 | |||||||||
Federal income tax expense (benefit) | (5,698 | ) | (1,431 | ) | (17,651 | ) | 7,707 | ||||||||
Net income (loss) | $ | (4,776 | ) | $ | 2,923 | $ | (16,880 | ) | $ | 35,967 |
Balance Sheet: | September 30, 2011 | December 31, 2010 | |||||
(In Thousands) | |||||||
Total invested assets: | |||||||
Property and casualty segment | $ | 1,265,170 | $ | 947,176 | |||
Life insurance segment | 1,602,252 | 1,535,722 | |||||
Total cash and investments | 3,021,899 | 2,662,955 | |||||
Total assets | 3,611,675 | 3,007,439 | |||||
Future policy benefits and losses, claims and loss settlement expenses | $ | 2,419,243 | $ | 1,992,421 | |||
Total liabilities | 2,926,218 | 2,291,015 | |||||
Net unrealized investment gains, after-tax | $ | 109,857 | $ | 102,649 | |||
Total stockholders’ equity | 685,457 | 716,424 | |||||
Property and casualty insurance statutory capital and surplus (1) (2) | $ | 543,498 | $ | 594,308 | |||
Life insurance statutory capital and surplus (2) | 164,303 | 158,379 |
Three Months Ended September 30, | 2011 | 2010 | 2011 | 2010 | |||||||||||
(In Thousands) | Excluding Mercer Insurance Group Premiums | Including Mercer Insurance Group Premiums (1) | |||||||||||||
Net Premiums Written | |||||||||||||||
Commercial lines: | |||||||||||||||
Other liability (2) | $ | 28,202 | $ | 25,489 | $ | 28,506 | $ | 25,489 | |||||||
Fire and allied lines (3) | 25,073 | 23,484 | 44,524 | 23,484 | |||||||||||
Automobile | 24,168 | 22,088 | 31,163 | 22,088 | |||||||||||
Workers’ compensation | 12,911 | 10,375 | 14,071 | 10,375 | |||||||||||
Fidelity and surety | 4,452 | 4,618 | 4,520 | 4,618 | |||||||||||
Miscellaneous | 228 | 192 | 228 | 192 | |||||||||||
Total commercial lines | $ | 95,034 | $ | 86,246 | $ | 123,012 | $ | 86,246 | |||||||
Personal lines: | |||||||||||||||
Fire and allied lines (4) | $ | 7,184 | $ | 6,979 | $ | 11,171 | $ | 6,979 | |||||||
Automobile | 4,185 | 3,938 | 5,278 | 3,938 | |||||||||||
Miscellaneous | 135 | 123 | 209 | 123 | |||||||||||
Total personal lines | $ | 11,504 | $ | 11,040 | $ | 16,658 | $ | 11,040 | |||||||
Reinsurance assumed | 3,742 | 2,676 | 3,742 | 2,676 | |||||||||||
Total | $ | 110,280 | $ | 99,962 | $ | 143,412 | $ | 99,962 |
Nine Months Ended September 30, | 2011 | 2010 | 2011 | 2010 | |||||||||||
(In Thousands) | Excluding Mercer Insurance Group Premiums | Including Mercer Insurance Group Premiums | |||||||||||||
Net Premiums Written | |||||||||||||||
Commercial lines: | |||||||||||||||
Other liability | $ | 92,897 | $ | 87,051 | $ | 93,535 | $ | 87,051 | |||||||
Fire and allied lines | 78,153 | 75,187 | 120,084 | 75,187 | |||||||||||
Automobile | 76,309 | 72,529 | 91,139 | 72,529 | |||||||||||
Workers’ compensation | 41,614 | 36,942 | 44,055 | 36,942 | |||||||||||
Fidelity and surety | 12,842 | 14,188 | 13,059 | 14,188 | |||||||||||
Miscellaneous | 688 | 627 | 688 | 627 | |||||||||||
Total commercial lines | $ | 302,503 | $ | 286,524 | $ | 362,560 | $ | 286,524 | |||||||
Personal lines: | |||||||||||||||
Fire and allied lines | $ | 19,605 | $ | 19,158 | $ | 27,391 | $ | 19,158 | |||||||
Automobile | 12,161 | 11,449 | 14,263 | 11,449 | |||||||||||
Miscellaneous | 426 | 380 | 593 | 380 | |||||||||||
Total personal lines | $ | 32,192 | $ | 30,987 | $ | 42,247 | $ | 30,987 | |||||||
Reinsurance assumed | 8,358 | 6,674 | 8,358 | 6,674 | |||||||||||
Total | $ | 343,053 | $ | 324,185 | $ | 413,165 | $ | 324,185 |
Three Months Ended September 30, | |||||||||||||||||||||
2011 | 2010 | ||||||||||||||||||||
Losses | Losses | ||||||||||||||||||||
and Loss | and Loss | ||||||||||||||||||||
Net | Settlement | Net | Settlement | ||||||||||||||||||
(In Thousands) | Premiums | Expenses | Loss | Premiums | Expenses | Loss | |||||||||||||||
Unaudited | Earned | Incurred | Ratio | Earned | Incurred | Ratio | |||||||||||||||
Commercial lines | |||||||||||||||||||||
Other liability | $ | 29,846 | $ | 9,213 | 30.9 | % | $ | 28,335 | $ | 26,699 | 94.2 | % | |||||||||
Fire and allied lines | 45,402 | 46,611 | 102.7 | 24,910 | 21,686 | 87.1 | |||||||||||||||
Automobile | 30,999 | 26,364 | 85.1 | 23,506 | 18,837 | 80.1 | |||||||||||||||
Workers' compensation | 14,257 | 11,572 | 81.2 | 11,459 | 8,116 | 70.8 | |||||||||||||||
Fidelity and surety | 4,375 | 925 | 21.1 | 4,993 | 275 | 5.5 | |||||||||||||||
Miscellaneous | 216 | (134 | ) | (62.0 | ) | 198 | 31 | 15.7 | |||||||||||||
Total commercial lines | $ | 125,095 | $ | 94,551 | 75.6 | % | $ | 93,401 | $ | 75,644 | 81.0 | % | |||||||||
Personal lines | |||||||||||||||||||||
Fire and allied lines | $ | 10,009 | $ | 10,962 | 109.5 | % | $ | 6,230 | $ | 3,198 | 51.3 | % | |||||||||
Automobile | 5,012 | 5,025 | 100.3 | 3,735 | 3,308 | 88.6 | |||||||||||||||
Miscellaneous | 226 | 90 | 39.8 | 121 | (143 | ) | (118.2 | ) | |||||||||||||
Total personal lines | $ | 15,247 | $ | 16,077 | 105.4 | % | $ | 10,086 | $ | 6,363 | 63.1 | % | |||||||||
Reinsurance assumed | $ | 3,723 | $ | 4,499 | 120.8 | % | $ | 2,687 | $ | 1,603 | 59.7 | % | |||||||||
Total | $ | 144,065 | $ | 115,127 | 79.9 | % | $ | 106,174 | $ | 83,610 | 78.8 | % |
Nine Months Ended September 30, | |||||||||||||||||||||
2011 | 2010 | ||||||||||||||||||||
Losses | Losses | ||||||||||||||||||||
and Loss | and Loss | ||||||||||||||||||||
Net | Settlement | Net | Settlement | ||||||||||||||||||
(In Thousands) | Premiums | Expenses | Loss | Premiums | Expenses | Loss | |||||||||||||||
Unaudited | Earned | Incurred | Ratio | Earned | Incurred | Ratio | |||||||||||||||
Commercial lines | |||||||||||||||||||||
Other liability | $ | 86,796 | $ | 31,023 | 35.7 | % | $ | 85,056 | $ | 58,644 | 68.9 | % | |||||||||
Fire and allied lines | 113,570 | 133,288 | 117.4 | 73,754 | 60,967 | 82.7 | |||||||||||||||
Automobile | 83,584 | 57,719 | 69.1 | 69,732 | 49,320 | 70.7 | |||||||||||||||
Workers' compensation | 39,352 | 33,131 | 84.2 | 34,305 | 19,899 | 58.0 | |||||||||||||||
Fidelity and surety | 12,280 | 944 | 7.7 | 13,969 | 2,757 | 19.7 | |||||||||||||||
Miscellaneous | 627 | 251 | 40.0 | 597 | 76 | 12.7 | |||||||||||||||
Total commercial lines | $ | 336,209 | $ | 256,356 | 76.2 | % | $ | 277,413 | $ | 191,663 | 69.1 | % | |||||||||
Personal lines | |||||||||||||||||||||
Fire and allied lines | $ | 26,045 | $ | 30,471 | 117.0 | % | $ | 18,317 | $ | 11,023 | 60.2 | % | |||||||||
Automobile | 13,674 | 10,995 | 80.4 | 10,818 | 9,265 | 85.6 | |||||||||||||||
Miscellaneous | 571 | 193 | 33.8 | 324 | (219 | ) | (67.6 | ) | |||||||||||||
Total personal lines | $ | 40,290 | $ | 41,659 | 103.4 | % | $ | 29,459 | $ | 20,069 | 68.1 | % | |||||||||
Reinsurance assumed | $ | 8,339 | $ | 18,901 | NM | $ | 6,677 | $ | 3,759 | 56.3 | % | ||||||||||
Total | $ | 384,838 | $ | 316,916 | 82.4 | % | $ | 313,549 | $ | 215,491 | 68.7 | % |
&UP1SIM
M;V1E/2)#35E+(B!X;7!'.G1Y<&4](E!23T-%4U,B('AM<$ 2X75)[IQ\+33,.7I0(=F>E2?
MA7DW3+T6AGJ94-@.9_'5JS9XXA9WOD_G,_.C\^?S*_/KS,_F3\P=>DOA&[_H
M?0828M.TZ)S_`'5K;U(7:@9C5VI\3$YV.FTN/3QJ`='GSRR'<_!XSF0TMXH=
MBEV*NQ5V*M8J_0__`)Q#_P"*\/EZ/0;#2;S04\J1GG];6QDLKQHWF/[Q@B47DI?"A
M_]/ZS_\`.7$DD?\`SC1^=[QNT;?X0U%"4)'P/$%8;=B"0?;,O0"]1#WAJS_W
M