Iowa | 001-34257 | 45-2302834 | ||
(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) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | 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 February 21, 2012, announcing our financial results for the quarter ended December 31, 2011. |
United Fire Group, Inc. | |||
(Registrant) | |||
Dated: | February 21, 2012 | /s/ Randy A. Ramlo | |
Randy A. Ramlo, Chief Executive Officer |
Exhibit Number | Description of Exhibit |
Exhibit 99.1 | Press Release, dated February 21, 2012, announcing our financial results for the quarter ended December 31, 2011. |
• | Net income of $0.66 per diluted share for the fourth quarter of 2011, compared with net income per diluted share of $0.44 for the fourth quarter of 2010 |
• | Operating income(1) of $0.62 per share for the fourth quarter of 2011, compared with operating income of $0.39 per share for the fourth quarter of 2010. |
• | Book value per share at $27.29, down $0.06 per share or 0.2 percent from December 31, 2010. |
• | Repurchased $12.4 million in company stock in 2011. |
Financial Highlights | Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||
(In Thousands Except Shares and Per Share Data) | 2011 | 2010 | Change % | 2011 | 2010 | Change % | |||||||||||||
Revenue Highlights | |||||||||||||||||||
Net premiums earned | $ | 161,665 | $ | 118,925 | 35.9 | % | $ | 586,783 | $ | 469,473 | 25.0 | % | |||||||
Net investment income | 27,764 | 28,342 | (2.0 | ) | 109,494 | 111,685 | (2.0 | ) | |||||||||||
Total revenues | 191,554 | 150,029 | 27.7 | 705,008 | 591,072 | 19.3 | |||||||||||||
Income Statement Data | |||||||||||||||||||
Operating income (loss) (1) | $ | 15,952 | $ | 10,184 | 56.6 | % | $ | (4,175 | ) | $ | 41,995 | (109.9 | )% | ||||||
After-tax realized investment gains | 939 | 1,362 | (31.1 | ) | 4,186 | 5,518 | (24.1 | ) | |||||||||||
Net income | $ | 16,891 | $ | 11,546 | 46.3 | % | $ | 11 | $ | 47,513 | (100.0 | )% | |||||||
Diluted Earnings Per Share Data | |||||||||||||||||||
Operating income (loss) (1) | $ | 0.62 | $ | 0.39 | 59.0 | % | $ | (0.16 | ) | $ | 1.60 | (110.0 | )% | ||||||
After-tax realized investment gains | 0.04 | 0.05 | (20.0 | ) | 0.16 | 0.20 | (20.0 | ) | |||||||||||
Net income | $ | 0.66 | $ | 0.44 | 50.0 | % | $ | — | $ | 1.80 | (100.0 | )% | |||||||
Catastrophe Data | |||||||||||||||||||
Pre-tax catastrophe losses (1) | $ | 9,768 | $ | 4,339 | 125.1 | % | $ | 80,793 | $ | 19,770 | NM | ||||||||
Effect on after-tax earnings per share | $ | 0.25 | $ | 0.11 | 127.3 | $ | 2.03 | $ | 0.49 | NM | |||||||||
Effect on combined ratio | 6.6 | % | 4.1 | % | 61.0 | 15.1 | % | 4.7 | % | NM | |||||||||
Combined ratio | 94.0 | % | 100.5 | % | (6.5 | )% | 112.1 | % | 99.9 | % | 12.2 | % | |||||||
Return on equity (2) | — | % | 6.84 | % | (100.0 | )% | |||||||||||||
Cash dividends declared per share | $ | 0.15 | $ | 0.15 | — | $ | 0.60 | $ | 0.60 | — | |||||||||
Diluted weighted average shares outstanding | 25,566,914 | 26,255,419 | (2.6 | )% | 25,878,535 | 26,337,678 | (1.7 | )% |
(1) The Measurement of Results section of this release defines and reconciles data not prepared in accordance with U.S. GAAP. | ||||
(2) Technically 2011 return on equity is positive but too small to display |
Property & Casualty Insurance Financial Results: | Three Months Ended December 31, | Years Ended December 31, | |||||||||||||
(In Thousands) | 2011 | 2010 | 2011 | 2010 | |||||||||||
Revenues | |||||||||||||||
Net premiums written (1) | $ | 138,758 | $ | 90,723 | $ | 551,923 | $ | 414,908 | |||||||
Net premiums earned | $ | 148,933 | $ | 106,824 | $ | 533,771 | $ | 420,373 | |||||||
Investment income, net of investment expenses | 9,240 | 9,293 | 35,513 | 34,787 | |||||||||||
Net realized investment gains | |||||||||||||||
Other-than-temporary impairment charges | — | — | — | (153 | ) | ||||||||||
All other net realized gains | 788 | 918 | 3,081 | 3,746 | |||||||||||
Total net realized investment gains | 788 | 918 | 3,081 | 3,593 | |||||||||||
Other income | 550 | 31 | 1,592 | 147 | |||||||||||
Total Revenues | $ | 159,511 | $ | 117,066 | $ | 573,957 | $ | 458,900 | |||||||
Benefits, Losses and Expenses | |||||||||||||||
Losses and loss settlement expenses | $ | 90,915 | $ | 73,946 | $ | 407,831 | $ | 289,437 | |||||||
Amortization of deferred policy acquisition costs | 38,289 | 24,937 | 143,952 | 100,310 | |||||||||||
Other underwriting expenses | 10,828 | 8,487 | 46,404 | 30,313 | |||||||||||
Total Benefits, Losses and Expenses | $ | 140,032 | $ | 107,370 | $ | 598,187 | $ | 420,060 | |||||||
Income (loss) before income taxes | $ | 19,479 | $ | 9,696 | $ | (24,230 | ) | $ | 38,840 | ||||||
Federal income tax expense (benefit) | 4,223 | 1,618 | (16,591 | ) | 4,114 | ||||||||||
Net income (loss) | $ | 15,256 | $ | 8,078 | $ | (7,639 | ) | $ | 34,726 | ||||||
GAAP combined ratio: | |||||||||||||||
Net loss ratio | 54.4 | % | 65.1 | % | 61.3 | % | 64.2 | % | |||||||
Catastrophes - effect on net loss ratio | 6.6 | 4.1 | 15.1 | 4.7 | |||||||||||
Net loss ratio | 61.0 | % | 69.2 | % | 76.4 | % | 68.9 | % | |||||||
Expense ratio | 33.0 | 31.3 | 35.7 | 31.0 | |||||||||||
Combined ratio | 94.0 | % | 100.5 | % | 112.1 | % | 99.9 | % | |||||||
Statutory combined ratio: (1) | |||||||||||||||
Net loss ratio | 54.4 | % | 65.1 | % | 61.3 | % | 64.2 | % | |||||||
Catastrophes - effect on net loss ratio | 6.6 | 4.1 | 15.1 | 4.7 | |||||||||||
Net loss ratio | 61.0 | % | 69.2 | % | 76.4 | % | 68.9 | % | |||||||
Expense ratio | 32.2 | 30.9 | 32.2 | 31.0 | |||||||||||
Combined ratio | 93.2 | % | 100.1 | % | 108.6 | % | 99.9 | % |
• | Net income increased 88.9 percent in the three-month period ended December 31, 2011 and decreased 122.0 percent in the year ended December 31, 2011 as compared to the same periods in 2010. The improvement in the fourth quarter of 2011 is primarily the result of increased premiums earned. The deterioration in our year-over-year results is due to an increase in loss and loss settlement expenses primarily from catastrophe losses and one-time acquisition related costs and other expenses associated with our acquisition of Mercer Insurance Group. |
• | Net premiums written increased 52.9 percent and 33.0 percent in the three-month period and year ended December 31, 2011, respectively. We attribute these increases to: |
◦ | Acquisition of Mercer Insurance Group - Total net premiums written increased $48.0 million for the quarter. The acquisition of Mercer Insurance Group contributed $34.9 million of the increase, with $30.2 million and $4.7 million, respectively, in our commercial and personal lines. |
◦ | Improved Pricing - The increase in our net premiums written also reflects low to mid-single digit rate increases across all lines, along with growth from internal initiatives we implemented at the beginning of 2011. |
• | Commercial lines - Competitive market conditions eased during the year, although not equally among all regions. All regions increased renewal premiums at a greater percentage in each month of the fourth quarter. New business is up by $15.7 million over 2010. All regions continue to see policy cancellations, though at a declining rate, due to insureds going out of business. |
• | Personal lines pricing continued to improve during 2011, continuing a trend that began over two years ago. |
• | Policy retention rates remained strong for both commercial and personal lines, with approximately 82.0 percent of our policies renewing. |
• | GAAP combined ratio decreased by 6.5 percentage points in the three-month period ended December 31, 2011, compared with the same period of 2010. For the year ended December 31, 2011, our combined ratio increased by 12.2 percentage points as compared to the same period of 2010. These increases are attributable to the following: |
◦ | Net loss ratio, a component of the combined ratio, decreased by 8.2 percentage points in the three-month period ended December 31, 2011 and increased by 7.5 percentage points in the year ended December 31, 2011, as compared with the same periods in 2010. The factors impacting the ratio were as follows: |
• | Catastrophe losses - Several large natural disasters in 2011 resulted in catastrophe losses totaling $9.8 million and $80.8 million for the three-month period and year ended December 31, 2011, respectively. Of these losses $5.4 million and $21.1 million occurred from our assumed reinsurance business, which experienced significant losses from natural disasters in New Zealand and Japan, for the three-month period and year ended December 31, 2011, respectively. |
• | Acquisition of Mercer Insurance Group - The acquisition of Mercer Insurance Group accounted for $26.0 million and $81.7 million of the increase in loss and loss settlement expenses for the three-month period and year ended December 31, 2011, respectively. |
• | Non-catastrophe claims experience - While a small number of severe workers' compensation losses contributed to the increase in losses and loss settlement expenses, other lines experienced improvement during the three-month period and year ended December 31, 2011. |
• | Legal expenses - In 2011, we continued to see success with our initiative to reduce legal expenses by better management of the claims subject to litigation that began in 2009. For the year ended December 31, 2011, we experienced a reduction of $7.3 million as compared to the same period of 2010. |
◦ | Expense ratio, a component of the combined ratio, increased 1.7 percentage points and 4.7 percentage points in the three-month period and year ended December 31, 2011, respectively, as compared to the same periods of 2010. This ratio, which is higher than our historical expense ratio is attributable to: |
• | Amortization of deferred policy acquisition costs increased 53.5 percent and 43.5 percent in the three-month period and year ended December 31, 2011, respectively, primarily due to our acquisition of Mercer Insurance Group and the impact of amortization of the value of business acquired ("VOBA") asset. Deferred policy acquisition costs from VOBA 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 as related to the Mercer Insurance Group purchase. As of December 31, 2011, the VOBA asset was $1.7 million, which will be fully amortized in the first quarter of 2012. For the three-month period and year ended December 31, 2011, VOBA, which is a GAAP concept and not included in the statutory expense ratio, contributed 2.7 and 4.8 percentage points to the GAAP expense ratio. |
• | Other underwriting expenses increased 27.6 percent and 53.1 percent in the three-month period and year ended December 31, 2011, respectively, primarily due to our acquisition of Mercer Insurance Group. In 2011, we incurred one-time acquisition-related costs in connection with this transaction totaling $8.3 million, which included change in control payments, legal expenses and other acquisition related expenses. These one-time acquisition-related costs, which are expensed under GAAP, contributed 1.6 percentage points to the GAAP expense ratio for 2011. |
Life Insurance Financial Results: | Three Months Ended December 31, | Years Ended December 31, | |||||||||||||
(In Thousands) | 2011 | 2010 | 2011 | 2010 | |||||||||||
Revenues | |||||||||||||||
Net premiums written (1) | $ | 12,718 | $ | 12,072 | $ | 52,944 | $ | 48,984 | |||||||
Net premiums earned | $ | 12,732 | $ | 12,101 | $ | 53,012 | $ | 49,100 | |||||||
Investment income, net of investment expenses | 18,524 | 19,049 | 73,981 | 76,898 | |||||||||||
Net realized investment gains | |||||||||||||||
Other-than-temporary impairment charges | (395 | ) | — | (395 | ) | (306 | ) | ||||||||
All other net realized gains | 1,051 | 1,177 | 3,754 | 5,202 | |||||||||||
Total net realized investment gains | 656 | 1,177 | 3,359 | 4,896 | |||||||||||
Other income | 131 | 636 | 699 | 1,278 | |||||||||||
Total Revenues | $ | 32,043 | $ | 32,963 | $ | 131,051 | $ | 132,172 | |||||||
Benefits, Losses and Expenses | |||||||||||||||
Losses and loss settlement expenses | $ | 6,620 | $ | 5,418 | $ | 22,558 | $ | 20,359 | |||||||
Increase in liability for future policy benefits | 7,338 | 6,246 | 32,567 | 27,229 | |||||||||||
Amortization of deferred policy acquisition costs | 2,087 | 3,179 | 9,224 | 10,735 | |||||||||||
Other underwriting expenses | 3,051 | 2,490 | 12,353 | 11,318 | |||||||||||
Interest on policyholders’ accounts | 10,610 | 10,617 | 42,834 | 42,988 | |||||||||||
Total Benefits, Losses and Expenses | $ | 29,706 | $ | 27,950 | $ | 119,536 | $ | 112,629 | |||||||
Income before income taxes | $ | 2,337 | $ | 5,013 | $ | 11,515 | $ | 19,543 | |||||||
Federal income tax expense | 702 | 1,545 | 3,865 | 6,756 | |||||||||||
Net income | $ | 1,635 | $ | 3,468 | $ | 7,650 | $ | 12,787 |
• | Net income decreased 52.9 percent and 40.2 percent in the three-month period and year ended December 31, 2011, respectively, as compared to the same periods of 2010, due primarily to historically low investment yields, but were also impacted by an increase in future policy benefits and a one-time increase in death benefits, as detailed below. |
◦ | Net premiums earned increased 5.2 percent and 8.0 percent in the three-month period and year ended December 31, 2011, respectively, as compared to the same periods of 2010, due to an increase in sales of our single premium whole life product and sales of single premium immediate annuities, which are attractive to consumers seeking a consistent rate of return. |
◦ | Investment income decreased 2.8 percent and 3.8 percent in the three-month period and year ended December 31, 2011, compared to the same periods of 2010. This was driven by the continuing low interest rate environment. In the fourth quarter, we began taking advantage of the decreasing spread between AAA- and A-rated fixed maturity securities to improve the quality of our fixed maturity purchases. Additionally, in 2011 we began increasing the duration of our investment portfolio to more closely match our liabilities, which have increased in conjunction with sales of our single premium whole life product. |
◦ | Loss and loss settlement expenses increased 22.2 percent and 10.8 percent in the three-month period |
▪ | Increase in liability for future policy benefits increased 17.5 percent and 19.6 percent in the three-month period and year ended December 31, 2011, compared to the same period of 2010. As a result of our initiative to achieve a more balanced product mix, we have increased the sale of our single premium whole life product. This has resulted in a corresponding increase in our reserves given the demographics of our insureds. |
• | Deferred annuity sales increased 73.3 percent and 33.7 percent in the three-month period and year ended December 31, 2011, respectively, as compared with the same periods of 2010. We attribute this to some consumers continuing to seek products with a consistent rate of return as the equity markets remain volatile and interest rates remain low. 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 $0.7 million and $17.6 million in the three-month period and year ended December 31, 2011, respectively, compared to a cash outflow of $3.8 million and a cash inflow of $0.4 million in the same periods of 2010. We attribute this to the activity described above. |
(In Thousands) | Three Months Ended December 31, | Years Ended December 31, | |||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Net premiums written | $ | 151,476 | $ | 102,795 | $ | 604,867 | $ | 463,892 | |||||||
Net change in unearned premium | 11,299 | 16,221 | (16,401 | ) | 5,669 | ||||||||||
Net change in prepaid reinsurance premium | (1,110 | ) | (91 | ) | (1,683 | ) | (88 | ) | |||||||
Net premiums earned | $ | 161,665 | $ | 118,925 | $ | 586,783 | $ | 469,473 |
(In Thousands Except Per Share Data) | Three Months Ended December 31, | Years Ended December 31, | |||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Net income | $ | 16,891 | $ | 11,546 | $ | 11 | $ | 47,513 | |||||||
After-tax realized investment gains | (939 | ) | (1,362 | ) | (4,186 | ) | (5,518 | ) | |||||||
Operating income (loss) | $ | 15,952 | $ | 10,184 | $ | (4,175 | ) | $ | 41,995 | ||||||
Diluted earnings per share | 0.66 | 0.44 | — | 1.80 | |||||||||||
Diluted operating income (loss) per share | 0.62 | 0.39 | (0.16 | ) | 1.60 |
(In Thousands) | Three Months Ended December 31, | Years Ended December 31, | |||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
ISO catastrophes (1) | $ | 4,177 | $ | 1,642 | $ | 57,238 | $ | 16,230 | |||||||
Non-ISO catastrophes (2) | 5,591 | 2,697 | 23,555 | 3,540 | |||||||||||
Total catastrophes | $ | 9,768 | $ | 4,339 | $ | 80,793 | $ | 19,770 |
Income Statement: | Three Months Ended December 31, | Years Ended December 31, | |||||||||||||
(In Thousands) | 2011 | 2010 | 2011 | 2010 | |||||||||||
Revenues | |||||||||||||||
Net premiums written (1) | $ | 151,476 | $ | 102,795 | $ | 604,867 | $ | 463,892 | |||||||
Net premiums earned | $ | 161,665 | $ | 118,925 | $ | 586,783 | $ | 469,473 | |||||||
Investment income, net of investment expenses | 27,764 | 28,342 | 109,494 | 111,685 | |||||||||||
Realized investment gains | |||||||||||||||
Other-than-temporary impairment charges | (395 | ) | — | (395 | ) | (459 | ) | ||||||||
All other realized gains | 1,839 | 2,095 | 6,835 | 8,948 | |||||||||||
Total realized investment gains | 1,444 | 2,095 | 6,440 | 8,489 | |||||||||||
Other income | 681 | 667 | 2,291 | 1,425 | |||||||||||
Total Revenues | $ | 191,554 | $ | 150,029 | $ | 705,008 | $ | 591,072 | |||||||
Benefits, Losses and Expenses | |||||||||||||||
Losses and loss settlement expenses | $ | 97,535 | $ | 79,364 | $ | 430,389 | $ | 309,796 | |||||||
Increase in liability for future policy benefits | 7,338 | 6,246 | 32,567 | 27,229 | |||||||||||
Amortization of deferred policy acquisition costs | 40,376 | 28,116 | 153,176 | 111,045 | |||||||||||
Other underwriting expenses | 13,879 | 10,977 | 58,757 | 41,631 | |||||||||||
Interest on policyholders’ accounts | 10,610 | 10,617 | 42,834 | 42,988 | |||||||||||
Total Benefits, Losses and Expenses | $ | 169,738 | $ | 135,320 | $ | 717,723 | $ | 532,689 | |||||||
Income (loss) before income taxes | 21,816 | 14,709 | (12,715 | ) | 58,383 | ||||||||||
Federal income tax expense (benefit) | 4,925 | 3,163 | (12,726 | ) | 10,870 | ||||||||||
Net income | $ | 16,891 | $ | 11,546 | $ | 11 | $ | 47,513 |
Balance Sheet: | December 31, 2011 | December 31, 2010 | |||||
(In Thousands) | |||||||
Total invested assets: | |||||||
Property and casualty segment | $ | 1,257,357 | $ | 947,176 | |||
Life insurance segment | 1,650,651 | 1,535,722 | |||||
Total cash and investments | 3,052,535 | 2,662,955 | |||||
Total assets | 3,618,924 | 3,007,439 | |||||
Future policy benefits and losses, claims and loss settlement expenses | $ | 2,421,332 | $ | 1,992,421 | |||
Total liabilities | 2,922,783 | 2,291,015 | |||||
Net unrealized investment gains, after-tax | $ | 124,376 | $ | 102,649 | |||
Total stockholders’ equity | 696,141 | 716,424 | |||||
Property and casualty insurance statutory capital and surplus (1) (2) | $ | 565,843 | $ | 594,308 | |||
Life insurance statutory capital and surplus (2) | 167,174 | 158,379 |
Three Months Ended December 31, | 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) | $ | 27,812 | $ | 23,358 | $ | 28,162 | $ | 23,358 | |||||||
Fire and allied lines (3) | 23,423 | 21,909 | 45,373 | 21,909 | |||||||||||
Automobile | 22,296 | 19,849 | 29,363 | 19,849 | |||||||||||
Workers’ compensation | 11,647 | 8,572 | 13,139 | 8,572 | |||||||||||
Fidelity and surety | 3,364 | 3,399 | 2,712 | 3,399 | |||||||||||
Miscellaneous | 210 | 195 | 210 | 195 | |||||||||||
Total commercial lines | $ | 88,752 | $ | 77,282 | $ | 118,959 | $ | 77,282 | |||||||
Personal lines: | |||||||||||||||
Fire and allied lines (4) | $ | 6,155 | $ | 6,004 | $ | 9,751 | $ | 6,004 | |||||||
Automobile | 3,940 | 3,702 | 4,928 | 3,702 | |||||||||||
Miscellaneous | 125 | 114 | 208 | 114 | |||||||||||
Total personal lines | $ | 10,220 | $ | 9,820 | $ | 14,887 | $ | 9,820 | |||||||
Reinsurance assumed | 4,912 | 3,621 | 4,912 | 3,621 | |||||||||||
Total | $ | 103,884 | $ | 90,723 | $ | 138,758 | $ | 90,723 |
Years Ended December 31, | 2011 | 2010 | 2011 | 2010 | |||||||||||
(In Thousands) | Excluding Mercer Insurance Group Premiums | Including Mercer Insurance Group Premiums | |||||||||||||
Net Premiums Written | |||||||||||||||
Commercial lines: | |||||||||||||||
Other liability | $ | 120,709 | $ | 110,409 | $ | 121,697 | $ | 110,409 | |||||||
Fire and allied lines | 101,576 | 97,096 | 165,457 | 97,096 | |||||||||||
Automobile | 98,605 | 92,378 | 120,502 | 92,378 | |||||||||||
Workers’ compensation | 53,261 | 45,514 | 57,194 | 45,514 | |||||||||||
Fidelity and surety | 16,206 | 17,587 | 15,771 | 17,587 | |||||||||||
Miscellaneous | 898 | 822 | 898 | 822 | |||||||||||
Total commercial lines | $ | 391,255 | $ | 363,806 | $ | 481,519 | $ | 363,806 | |||||||
Personal lines: | |||||||||||||||
Fire and allied lines | $ | 25,760 | $ | 25,162 | $ | 37,142 | $ | 25,162 | |||||||
Automobile | 16,101 | 15,151 | 19,191 | 15,151 | |||||||||||
Miscellaneous | 551 | 494 | 801 | 494 | |||||||||||
Total personal lines | $ | 42,412 | $ | 40,807 | $ | 57,134 | $ | 40,807 | |||||||
Reinsurance assumed | 13,270 | 10,295 | 13,270 | 10,295 | |||||||||||
Total | $ | 446,937 | $ | 414,908 | $ | 551,923 | $ | 414,908 |
Three Months Ended December 31, | |||||||||||||||||||||
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 | $ | 31,004 | $ | 11,339 | 36.6 | % | $ | 28,499 | $ | 36,001 | 126.3 | % | |||||||||
Fire and allied lines | 46,419 | 23,357 | 50.3 | 24,919 | 17,207 | 69.1 | |||||||||||||||
Automobile | 31,646 | 26,502 | 83.7 | 23,428 | 17,626 | 75.2 | |||||||||||||||
Workers' compensation | 15,052 | 14,022 | 93.2 | 10,869 | 7,339 | 67.5 | |||||||||||||||
Fidelity and surety | 4,385 | 405 | 9.2 | 5,144 | 376 | 7.3 | |||||||||||||||
Miscellaneous | 227 | (661 | ) | NM | 207 | 972 | NM | ||||||||||||||
Total commercial lines | $ | 128,733 | $ | 74,964 | 58.2 | % | $ | 93,066 | $ | 79,521 | 85.4 | % | |||||||||
Personal lines | |||||||||||||||||||||
Fire and allied lines | $ | 9,982 | $ | 5,615 | 56.3 | % | $ | 6,351 | $ | 2,827 | 44.5 | % | |||||||||
Automobile | 5,070 | 4,547 | 89.7 | 3,798 | 3,377 | 88.9 | |||||||||||||||
Miscellaneous | 226 | (96 | ) | (42.5 | ) | 123 | (697 | ) | NM | ||||||||||||
Total personal lines | $ | 15,278 | $ | 10,066 | 65.9 | % | $ | 10,272 | $ | 5,507 | 53.6 | % | |||||||||
Reinsurance assumed | $ | 4,922 | $ | 5,885 | 119.6 | % | $ | 3,486 | $ | (11,082 | ) | NM | |||||||||
Total | $ | 148,933 | $ | 90,915 | 61.0 | % | $ | 106,824 | $ | 73,946 | 69.2 | % |
Years Ended December 31, | |||||||||||||||||||||
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 | $ | 117,800 | $ | 42,362 | 36.0 | % | $ | 113,555 | $ | 94,645 | 83.3 | % | |||||||||
Fire and allied lines | 159,989 | 156,645 | 97.9 | 98,673 | 78,174 | 79.2 | |||||||||||||||
Automobile | 115,230 | 84,221 | 73.1 | 93,160 | 66,946 | 71.9 | |||||||||||||||
Workers' compensation | 54,404 | 47,153 | 86.7 | 45,174 | 27,238 | 60.3 | |||||||||||||||
Fidelity and surety | 16,665 | 1,349 | 8.1 | 19,113 | 3,133 | 16.4 | |||||||||||||||
Miscellaneous | 854 | (410 | ) | (48.0 | ) | 804 | 1,048 | 130.3 | |||||||||||||
Total commercial lines | $ | 464,942 | $ | 331,320 | 71.3 | % | $ | 370,479 | $ | 271,184 | 73.2 | % | |||||||||
Personal lines | |||||||||||||||||||||
Fire and allied lines | $ | 36,027 | $ | 36,086 | 100.2 | % | $ | 24,668 | $ | 13,850 | 56.1 | % | |||||||||
Automobile | 18,744 | 15,542 | 82.9 | 14,616 | 12,642 | 86.5 | |||||||||||||||
Miscellaneous | 797 | 97 | 12.2 | 447 | (916 | ) | NM | ||||||||||||||
Total personal lines | $ | 55,568 | $ | 51,725 | 93.1 | % | $ | 39,731 | $ | 25,576 | 64.4 | % | |||||||||
Reinsurance assumed | $ | 13,261 | $ | 24,786 | 186.9 | % | $ | 10,163 | $ | (7,323 | ) | (72.1 | )% | ||||||||
Total | $ | 533,771 | $ | 407,831 | 76.4 | % | $ | 420,373 | $ | 289,437 | 68.9 | % |
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