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 November 5, 2012, announcing our financial results for the quarter ended September 30, 2012. |
United Fire & Casualty Company | |||
(Registrant) | |||
Dated: | November 5, 2012 | /s/ Randy A. Ramlo | |
Randy A. Ramlo, Chief Executive Officer |
Exhibit Number | Description of Exhibit |
99.1 | Press Release, dated November 5, 2012, announcing our financial results for the quarter ended September 30, 2012. |
• | Net income of $0.34 per diluted share for the third quarter of 2012, compared with net loss per diluted share of $0.19 for the third quarter of 2011. |
• | Operating income(1) of $0.31 per share for the third quarter of 2012, compared with operating loss of $0.22 per share for the third quarter of 2011. |
• | Book value per share at $29.66, up $2.37 per share or 8.7 percent from December 31, 2011. |
Financial Highlights | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
(In Thousands Except Shares and Per Share Data) | 2012 | 2011 | Change % | 2012 | 2011(1) | Change % | |||||||||||||
Revenue Highlights | |||||||||||||||||||
Net premiums earned | $ | 176,531 | $ | 158,704 | 11.2 | % | $ | 508,124 | $ | 425,118 | 19.5 | % | |||||||
Net investment income | 28,665 | 26,926 | 6.5 | 86,560 | 81,730 | 5.9 | |||||||||||||
Total revenues | 206,581 | 187,574 | 10.1 | 599,926 | 513,454 | 16.8 | |||||||||||||
Income Statement Data | |||||||||||||||||||
Operating income (loss) (2) | $ | 7,886 | $ | (5,568 | ) | NM(3) | $ | 39,603 | $ | (20,127 | ) | NM(3) | |||||||
After-tax realized investment gains | 844 | 792 | 6.6 | 3,027 | 3,247 | (6.8 | ) | ||||||||||||
Net income (loss) | $ | 8,730 | $ | (4,776 | ) | NM(3) | $ | 42,630 | $ | (16,880 | ) | NM(3) | |||||||
Diluted Earnings Per Share Data | |||||||||||||||||||
Operating income (loss) (2) | $ | 0.31 | $ | (0.22 | ) | NM(3) | $ | 1.55 | $ | (0.77 | ) | NM(3) | |||||||
After-tax realized investment gains | 0.03 | 0.03 | — | 0.12 | 0.12 | — | |||||||||||||
Net income (loss) | $ | 0.34 | $ | (0.19 | ) | NM(3) | $ | 1.67 | $ | (0.65 | ) | NM(3) | |||||||
Catastrophe Data | |||||||||||||||||||
Pre-tax catastrophe losses (2) | $ | 8,493 | $ | 23,893 | (64.5 | )% | $ | 34,546 | $ | 76,975 | (55.1 | )% | |||||||
Effect on after-tax earnings per share | 0.22 | 0.60 | (63.3 | ) | 0.88 | 1.92 | (54.2 | ) | |||||||||||
Effect on combined ratio | 5.3 | % | 16.6 | % | (68.1 | )% | 7.5 | % | 20.0 | % | (62.5 | )% | |||||||
Combined ratio | 102.5 | % | 115.7 | % | (11.4 | )% | 97.7 | % | 119.1 | % | (18.0 | )% | |||||||
Return on equity | 7.84 | % | (3.21 | )% | NM(3) | ||||||||||||||
Cash dividends declared per share | $ | 0.15 | $ | 0.15 | — | $ | 0.45 | $ | 0.45 | — | |||||||||
Diluted weighted average shares outstanding | 25,526,662 | 25,722,572 | (0.8 | )% | 25,566,646 | 26,004,923 | (1.7 | )% |
Property & Casualty Insurance Financial Results: | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(In Thousands) | 2012 | 2011 | 2012 | 2011(1) | |||||||||||
Revenues | |||||||||||||||
Net premiums written (2) | $ | 155,433 | $ | 143,412 | $ | 500,303 | $ | 413,165 | |||||||
Net premiums earned | $ | 161,232 | $ | 144,065 | $ | 461,902 | $ | 384,838 | |||||||
Investment income, net of investment expenses | 11,051 | 8,085 | 33,409 | 26,273 | |||||||||||
Net realized investment gains | |||||||||||||||
Other-than-temporary impairment charges | — | — | (4 | ) | — | ||||||||||
All other net realized gains | 1,214 | 692 | 1,769 | 2,293 | |||||||||||
1,214 | 692 | 1,765 | 2,293 | ||||||||||||
Other income (loss) | (19 | ) | 504 | 177 | 1,042 | ||||||||||
Total Revenues | $ | 173,478 | $ | 153,346 | $ | 497,253 | $ | 414,446 | |||||||
Benefits, Losses and Expenses | |||||||||||||||
Losses and loss settlement expenses | $ | 114,846 | $ | 115,127 | $ | 302,376 | $ | 316,916 | |||||||
Amortization of deferred policy acquisition costs | 34,060 | 40,547 | 98,355 | 105,663 | |||||||||||
Other underwriting expenses | 16,332 | 11,050 | 50,353 | 35,576 | |||||||||||
Total Benefits, Losses and Expenses | $ | 165,238 | $ | 166,724 | $ | 451,084 | $ | 458,155 | |||||||
Income (Loss) before income taxes | $ | 8,240 | $ | (13,378 | ) | $ | 46,169 | $ | (43,709 | ) | |||||
Federal income tax expense (benefit) | 624 | (6,707 | ) | 8,562 | (20,814 | ) | |||||||||
Net income (loss) | $ | 7,616 | $ | (6,671 | ) | $ | 37,607 | $ | (22,895 | ) | |||||
GAAP combined ratio: | |||||||||||||||
Net loss ratio - excluding catastrophes | 65.9 | % | 63.3 | % | 58.0 | % | 62.4 | % | |||||||
Catastrophes - effect on net loss ratio | 5.3 | 16.6 | 7.5 | 20.0 | |||||||||||
Net loss ratio | 71.2 | % | 79.9 | % | 65.5 | % | 82.4 | % | |||||||
Expense ratio | 31.3 | 35.8 | 32.2 | 36.7 | |||||||||||
Combined ratio | 102.5 | % | 115.7 | % | 97.7 | % | 119.1 | % | |||||||
Statutory combined ratio: (2) | |||||||||||||||
Net loss ratio - excluding catastrophes | 66.7 | % | 63.4 | % | 58.7 | % | 62.0 | % | |||||||
Catastrophes - effect on net loss ratio | 5.3 | 16.6 | 7.5 | 20.0 | |||||||||||
Net loss ratio | 72.0 | % | 80.0 | % | 66.2 | % | 82.0 | % | |||||||
Expense ratio | 33.1 | 32.7 | 31.6 | 32.7 | |||||||||||
Combined ratio | 105.1 | % | 112.7 | % | 97.8 | % | 114.7 | % |
• | Net premiums earned increased 12 percent in the third quarter of 2012, compared to the third quarter of 2011, due to: |
◦ | Organic growth - The increase in our net premiums earned is the result of a combination of increased rates, an increase in new business writings and an increase in audit premiums, which result from business policies that are audited to determine accurate premiums based on covered sales or payrolls or endorsements. |
◦ | Commercial lines renewal pricing increased in the mid-single digits for the fourth consecutive quarter. Competitive market conditions continued on new business during the quarter. In addition to the increase in audit premiums, we are also seeing growth in premium from policy changes and a decline in the number of out-of-business policy cancellations. |
◦ | Personal lines pricing has improved, with upper-single digit increases for homeowners and low-to-mid single-digit increases for personal auto. |
◦ | Policy retention rates dropped slightly, due to our rate increases. |
• | GAAP combined ratio decreased 13.2 percentage points for the three-month period ended September 30, 2012, compared with the same period of 2011. For the nine-month period ended September 30, 2012, our combined ratio decreased by 21.4 percentage points as compared to the same period of 2011. These decreases are attributable to reductions in net loss ratio and expense ratio from 2011. |
◦ | Net loss ratio, a component of the combined ratio, decreased by 8.7 percentage points and 16.9 percentage points in the three- and nine-month periods ended September 30, 2012, as compared to the same periods in 2011. Last year, we incurred significant catastrophe losses from storms domestically and assumed reinsurance losses related to the New Zealand earthquakes and the earthquake and tsunami in Japan. |
◦ | Expense ratio, a component of the combined ratio, decreased 4.5 percentage points for both the three- and nine-month periods ended September 30, 2012, as compared to the same periods in 2011. The expenses associated with the acquisition of the Mercer Insurance Group increased the expense ratio reported for 2011. Accounting rule changes in 2012 related to policy acquisition costs have increased the amount of underwriting expenses recognized in 2012. |
• | Non-catastrophe loss severity had been declining in the first two quarters of 2012. In the third quarter, however, we experienced an increase in the number and severity of Other Liability and Workers' Compensation losses. These losses, while severe, were not severe enough to exceed our retention limits and thus recover on our reinsurance contracts. As a result, they caused an increase in the GAAP combined ratio from 96.3% in the second quarter to 102.5% in the third quarter of 2012. Our overall non-catastrophe loss severity for the year remains lower than 2011, but we will continue to closely monitor the situation. |
• | Accounting rules related to deferred policy acquisition costs - Effective January 1, 2012, we prospectively adopted the change in accounting rules related to deferred policy acquisition costs. As a result of the change, the amount of underwriting expenses eligible for deferral has decreased. After consideration of our normal recovery assessment, which we refer to as a premium deficiency charge, and the amortization pattern of our deferred policy acquisition costs, we recognized approximately $1.4 million and $8.6 million of additional expense in the three- and nine-month periods ended September 30, 2012 than we would have recognized had the rules remained the same. |
Life Insurance Financial Results: | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(In Thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Revenues | |||||||||||||||
Net premiums written (1) | $ | 15,292 | $ | 14,624 | $ | 46,197 | $ | 40,226 | |||||||
Net premiums earned | $ | 15,299 | $ | 14,639 | $ | 46,222 | $ | 40,280 | |||||||
Investment income, net of investment expenses | 17,614 | 18,841 | 53,151 | 55,457 | |||||||||||
Net realized investment gains | 86 | 527 | 2,893 | 2,703 | |||||||||||
Other income | 104 | 221 | 407 | 568 | |||||||||||
Total Revenues | $ | 33,103 | $ | 34,228 | $ | 102,673 | $ | 99,008 | |||||||
Benefits, Losses and Expenses | |||||||||||||||
Losses and loss settlement expenses | $ | 4,910 | $ | 5,734 | $ | 15,630 | $ | 15,938 | |||||||
Increase in liability for future policy benefits | 9,815 | 9,167 | 28,309 | 25,229 | |||||||||||
Amortization of deferred policy acquisition costs | 2,107 | 2,475 | 6,542 | 7,137 | |||||||||||
Other underwriting expenses | 4,164 | 3,051 | 12,678 | 9,302 | |||||||||||
Interest on policyholders’ accounts | 10,327 | 10,897 | 31,610 | 32,224 | |||||||||||
Total Benefits, Losses and Expenses | $ | 31,323 | $ | 31,324 | $ | 94,769 | $ | 89,830 | |||||||
Income before income taxes | $ | 1,780 | $ | 2,904 | $ | 7,904 | $ | 9,178 | |||||||
Federal income tax expense | 666 | 1,009 | 2,881 | 3,163 | |||||||||||
Net income | $ | 1,114 | $ | 1,895 | $ | 5,023 | $ | 6,015 |
• | Net income decreased by $0.8 million and $1.0 million in the three- and nine-month periods ended September 30, 2012, respectively, as compared to the same periods of 2011, as a result of the following factors: |
◦ | Net premiums earned increased 4.5 percent and 14.8 percent in the three- and nine-month periods ended September 30, 2012, respectively, as compared to the same periods of 2011, due to increased sales of our single premium whole life product. |
◦ | Investment income decreased 6.5 percent and 4.2 percent in the three- and nine-month periods ended September 30, 2012, respectively, as compared to the same periods of 2011. The historically low interest rates continue to reduce both our investment income and margin on earnings. We continue to address this by both pricing our products appropriately and maintaining a disciplined asset liability management strategy that focuses on high quality investments. |
◦ | Loss and loss settlement expenses decreased 14.4 percent and 1.9 percent in the three- and nine-month periods ended September 30, 2012, respectively, as compared to the same periods of 2011, due to a decrease in universal life insurance death benefits. |
◦ | Increase in liability for future policy benefits increased 7.1 percent and 12.2 percent in the three- and nine-month periods ended September 30, 2012, respectively, as compared to the same periods of 2011, due to both the increase in sales of our single premium whole life product, as mentioned above, and the demographics of our insureds. |
◦ | Other underwriting expenses have increased in the three- and nine-month periods ended September 30, 2012 compared to the same periods of 2011. This is primarily driven by growth in sales of our single premium whole life product, resulting in an increase in incentives and commissions paid to our agencies. Additionally, accounting rule changes in 2012 related to policy acquisition costs have increased the amount of underwriting expenses recognized by $0.4 million and $1.3 million in the three- and nine-month periods ended September 30, 2012. For more detail on these rules changes, please see the discussion of operations for the Property & Casualty Insurance Segment. |
• | Deferred annuity deposits decreased 58.6 percent and 21.7 percent for the three- and nine-month periods ended September 30, 2012, as compared with the same periods in 2011. It has been prudent to lower the credited rate we have offered during the low investment return environment, thus affecting current deposits. Sales of single premium deferred annuities have also decreased in regard to overall portfolio production, due to strong sales of traditional life products. 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 outflow related to our annuity business was $13.2 million and $18.8 million in the three- and nine-month periods ended September 30, 2012, compared to a net cash inflow of $19.5 million and $16.9 million in the same periods of 2011. We attribute this to the activity described previously. |
(In Thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2012 | 2011 | 2012 | 2011(1) | ||||||||||||
Net premiums written | $ | 170,725 | $ | 158,036 | $ | 546,500 | $ | 453,391 | |||||||
Net change in unearned premium | 5,959 | 1,843 | (35,347 | ) | (27,700 | ) | |||||||||
Net change in prepaid reinsurance premium | (153 | ) | (1,175 | ) | (3,029 | ) | (573 | ) | |||||||
Net premiums earned | $ | 176,531 | $ | 158,704 | $ | 508,124 | $ | 425,118 |
(In Thousands Except Per Share Data) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2012 | 2011 | 2012 | 2011(1) | ||||||||||||
Net income (loss) | $ | 8,730 | $ | (4,776 | ) | $ | 42,630 | $ | (16,880 | ) | |||||
After-tax realized investment gains | (844 | ) | (792 | ) | (3,027 | ) | (3,247 | ) | |||||||
Operating income (loss) | $ | 7,886 | $ | (5,568 | ) | $ | 39,603 | $ | (20,127 | ) | |||||
Diluted earnings (loss) per share | 0.34 | (0.19 | ) | 1.67 | (0.65 | ) | |||||||||
Diluted operating income (loss) per share | 0.31 | (0.22 | ) | 1.55 | (0.77 | ) |
(In Thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
ISO catastrophes | $ | 7,204 | $ | 20,365 | $ | 33,148 | $ | 59,011 | |||||||
Non-ISO catastrophes (1) | 1,289 | 3,528 | 1,398 | 17,964 | |||||||||||
Total catastrophes | $ | 8,493 | $ | 23,893 | $ | 34,546 | $ | 76,975 |
Income Statement: | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(In Thousands) | 2012 | 2011 | 2012 | 2011(1) | |||||||||||
Revenues | |||||||||||||||
Net premiums written (2) | $ | 170,725 | $ | 158,036 | $ | 546,500 | $ | 453,391 | |||||||
Net premiums earned | $ | 176,531 | $ | 158,704 | $ | 508,124 | $ | 425,118 | |||||||
Investment income, net of investment expenses | 28,665 | 26,926 | 86,560 | 81,730 | |||||||||||
Other-than-temporary impairment charges | — | — | (4 | ) | — | ||||||||||
All other net realized gains | 1,300 | 1,219 | 4,662 | 4,996 | |||||||||||
Net realized investment gains | 1,300 | 1,219 | 4,658 | 4,996 | |||||||||||
Other income | 85 | 725 | 584 | 1,610 | |||||||||||
Total Revenues | $ | 206,581 | $ | 187,574 | $ | 599,926 | $ | 513,454 | |||||||
Benefits, Losses and Expenses | |||||||||||||||
Losses and loss settlement expenses | $ | 119,756 | $ | 120,861 | $ | 318,006 | $ | 332,854 | |||||||
Increase in liability for future policy benefits | 9,815 | 9,167 | 28,309 | 25,229 | |||||||||||
Amortization of deferred policy acquisition costs | 36,167 | 43,022 | 104,897 | 112,800 | |||||||||||
Other underwriting expenses | 20,496 | 14,101 | 63,031 | 44,878 | |||||||||||
Interest on policyholders’ accounts | 10,327 | 10,897 | 31,610 | 32,224 | |||||||||||
Total Benefits, Losses and Expenses | $ | 196,561 | $ | 198,048 | $ | 545,853 | $ | 547,985 | |||||||
Income (loss) before income taxes | 10,020 | (10,474 | ) | 54,073 | (34,531 | ) | |||||||||
Federal income tax expense (benefit) | 1,290 | (5,698 | ) | 11,443 | (17,651 | ) | |||||||||
Net income (loss) | $ | 8,730 | $ | (4,776 | ) | $ | 42,630 | $ | (16,880 | ) |
Balance Sheet: | September 30, 2012 | December 31, 2011 | |||||
(In Thousands) | |||||||
Total invested assets: | |||||||
Property and casualty segment | $ | 1,334,278 | $ | 1,257,357 | |||
Life insurance segment | 1,734,788 | 1,650,651 | |||||
Total cash and investments | 3,151,632 | 3,052,535 | |||||
Total assets | 3,737,810 | 3,618,924 | |||||
Future policy benefits and losses, claims and loss settlement expenses | $ | 2,474,683 | $ | 2,421,332 | |||
Total liabilities | 2,983,988 | 2,922,783 | |||||
Net unrealized investment gains, after-tax | $ | 149,330 | $ | 124,376 | |||
Total stockholders’ equity | 753,822 | 696,141 | |||||
Property and casualty insurance statutory capital and surplus (1) (2) | $ | 602,524 | $ | 565,843 | |||
Life insurance statutory capital and surplus (2) | 167,929 | 167,174 |
Three Months Ended September 30, | 2012 | 2011 | |||||
(In Thousands) | |||||||
Net Premiums Written | |||||||
Commercial lines: | |||||||
Other liability (1) | $ | 48,423 | $ | 42,589 | |||
Fire and allied lines (2) | 31,734 | 30,443 | |||||
Automobile | 31,224 | 31,163 | |||||
Workers’ compensation | 16,383 | 14,071 | |||||
Fidelity and surety | 4,402 | 4,520 | |||||
Miscellaneous | 264 | 228 | |||||
Total commercial lines | $ | 132,430 | $ | 123,014 | |||
Personal lines: | |||||||
Fire and allied lines (3) | $ | 11,248 | $ | 11,150 | |||
Automobile | 7,184 | 5,278 | |||||
Miscellaneous | 243 | 228 | |||||
Total personal lines | $ | 18,675 | $ | 16,656 | |||
Reinsurance assumed | 4,328 | 3,742 | |||||
Total | $ | 155,433 | $ | 143,412 |
Nine Months Ended September 30, | 2012 | 2011 | 2012 | 2011 | |||||||||||
(In Thousands) | Excluding Mercer Insurance Group Premiums | Including Mercer Insurance Group Premiums | |||||||||||||
Net Premiums Written | |||||||||||||||
Commercial lines: | |||||||||||||||
Other liability (1) | $ | 109,298 | $ | 92,897 | $ | 158,527 | $ | 122,847 | |||||||
Fire and allied lines (2) | 84,999 | 78,153 | 104,621 | 90,774 | |||||||||||
Automobile | 84,924 | 76,309 | 105,767 | 91,139 | |||||||||||
Workers’ compensation | 51,172 | 41,614 | 56,751 | 44,055 | |||||||||||
Fidelity and surety | 13,640 | 12,842 | 14,413 | 13,059 | |||||||||||
Miscellaneous | 816 | 688 | 816 | 688 | |||||||||||
Total commercial lines | $ | 344,849 | $ | 302,503 | $ | 440,895 | $ | 362,562 | |||||||
Personal lines: | |||||||||||||||
Fire and allied lines (3) | $ | 20,170 | $ | 19,605 | $ | 31,287 | $ | 27,370 | |||||||
Automobile | 13,064 | 12,161 | 17,862 | 14,263 | |||||||||||
Miscellaneous | 470 | 426 | 727 | 612 | |||||||||||
Total personal lines | $ | 33,704 | $ | 32,192 | $ | 49,876 | $ | 42,245 | |||||||
Reinsurance assumed | 9,532 | 8,358 | 9,532 | 8,358 | |||||||||||
Total | $ | 388,085 | $ | 343,053 | $ | 500,303 | $ | 413,165 |
Three Months Ended September 30, | 2012 | 2011 | |||||||||||||||||||
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 | $ | 50,887 | $ | 28,579 | 56.2 | % | $ | 43,692 | $ | 18,114 | 41.5 | % | |||||||||
Fire and allied lines | 33,574 | 24,637 | 73.4 | 31,556 | 37,710 | 119.5 | |||||||||||||||
Automobile | 34,087 | 24,703 | 72.5 | 30,999 | 26,364 | 85.0 | |||||||||||||||
Workers' compensation | 17,606 | 16,933 | 96.2 | 14,257 | 11,572 | 81.2 | |||||||||||||||
Fidelity and surety | 4,365 | 1,962 | 44.9 | 4,375 | 925 | 21.1 | |||||||||||||||
Miscellaneous | 258 | 214 | 82.9 | 216 | (134 | ) | (62.0 | ) | |||||||||||||
Total commercial lines | $ | 140,777 | $ | 97,028 | 68.9 | % | $ | 125,095 | $ | 94,551 | 75.6 | % | |||||||||
Personal lines | |||||||||||||||||||||
Fire and allied lines | $ | 10,247 | $ | 11,758 | 114.7 | % | $ | 10,009 | $ | 10,962 | 109.5 | % | |||||||||
Automobile | 5,711 | 3,562 | 62.4 | 5,012 | 5,025 | 100.3 | |||||||||||||||
Miscellaneous | 235 | 42 | 17.9 | 226 | 90 | 39.8 | |||||||||||||||
Total personal lines | $ | 16,193 | $ | 15,362 | 94.9 | % | $ | 15,247 | $ | 16,077 | 105.4 | % | |||||||||
Reinsurance assumed | $ | 4,262 | $ | 2,456 | 57.6 | % | $ | 3,723 | $ | 4,499 | 120.8 | % | |||||||||
Total | $ | 161,232 | $ | 114,846 | 71.2 | % | $ | 144,065 | $ | 115,127 | 79.9 | % |
Nine Months Ended September 30, | 2012 | 2011(1) | |||||||||||||||||||
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 | $ | 145,604 | $ | 70,793 | 48.6 | % | $ | 114,518 | $ | 51,239 | 44.7 | % | |||||||||
Fire and allied lines | 97,365 | 81,968 | 84.2 | 85,848 | 113,072 | 131.7 | |||||||||||||||
Automobile | 98,785 | 75,891 | 76.8 | 83,584 | 57,719 | 69.1 | |||||||||||||||
Workers' compensation | 50,068 | 30,260 | 60.4 | 39,352 | 33,131 | 84.2 | |||||||||||||||
Fidelity and surety | 12,780 | 1,607 | 12.6 | 12,280 | 944 | 7.7 | |||||||||||||||
Miscellaneous | 735 | 278 | 37.8 | 627 | 251 | 40.0 | |||||||||||||||
Total commercial lines | $ | 405,337 | $ | 260,797 | 64.3 | % | $ | 336,209 | $ | 256,356 | 76.2 | % | |||||||||
Personal lines | |||||||||||||||||||||
Fire and allied lines | $ | 30,479 | $ | 22,633 | 74.3 | % | $ | 26,045 | $ | 30,471 | 117.0 | % | |||||||||
Automobile | 15,896 | 10,999 | 69.2 | 13,674 | 10,995 | 80.4 | |||||||||||||||
Miscellaneous | 691 | 158 | 22.9 | 571 | 193 | 33.8 | |||||||||||||||
Total personal lines | $ | 47,066 | $ | 33,790 | 71.8 | % | $ | 40,290 | $ | 41,659 | 103.4 | % | |||||||||
Reinsurance assumed | $ | 9,499 | $ | 7,789 | 82.0 | % | $ | 8,339 | $ | 18,901 | NM(2) | ||||||||||
Total | $ | 461,902 | $ | 302,376 | 65.5 | % | $ | 384,838 | $ | 316,916 | 82.4 | % |
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