EMC INSURANCE GROUP INC. |
(Exact name of registrant as specified in its charter) |
Iowa | 0-10956 | 42-6234555 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
717 Mulberry Street, Des Moines, Iowa | 50309 | |
(Address of principal executive offices) | (Zip Code) |
(515) 345-2902 |
(Registrant’s telephone number, including area 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)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 7.01 | Regulation FD Disclosure. |
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit Number | Description |
99 | Press release |
EMC INSURANCE GROUP INC. |
Registrant |
/s/ Mark E. Reese |
Mark E. Reese |
Senior Vice President and |
Chief Financial Officer |
Exhibit Number | Description |
99 | Press release |
• | changes in the property and casualty insurance industry, interest rates or the performance of financial markets and the general economy; |
• | other risks and uncertainties inherent to the Company’s business, including those discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K. |
RECONCILIATION OF NET INCOME TO NON-GAAP OPERATING INCOME | ||||||||||||||||
($ in thousands) | ||||||||||||||||
Three months ended December 31, | Year ended December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net income | $ | 21,292 | $ | 9,895 | $ | 46,203 | $ | 50,162 | ||||||||
Realized investment gains (losses) | 4,717 | (5,402 | ) | 4,074 | 6,153 | |||||||||||
Income tax expense (benefit) | 1,651 | (1,890 | ) | 1,426 | 2,154 | |||||||||||
Net realized investment gains (losses) | 3,066 | (3,512 | ) | 2,648 | 3,999 | |||||||||||
Non-GAAP operating income | $ | 18,226 | $ | 13,407 | $ | 43,555 | $ | 46,163 |
RECONCILIATION OF NET INCOME PER SHARE TO NON-GAAP OPERATING INCOME PER SHARE | ||||||||||||||||
Three months ended December 31, | Year ended December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net income per share | $ | 1.01 | $ | 0.48 | $ | 2.20 | $ | 2.43 | ||||||||
Realized investment gains (losses) per share | 0.22 | (0.26 | ) | 0.19 | 0.29 | |||||||||||
Income tax expense (benefit) per share | 0.07 | (0.09 | ) | 0.06 | 0.10 | |||||||||||
Net realized investment gains (losses) per share | 0.15 | (0.17 | ) | 0.13 | 0.19 | |||||||||||
Non-GAAP operating income per share | $ | 0.86 | $ | 0.65 | $ | 2.07 | $ | 2.24 |
CONSOLIDATED STATEMENTS OF INCOME-UNAUDITED | ||||||||||||||||
($ in thousands, except share and per share amounts) | ||||||||||||||||
Quarter ended December 31, 2016 | Property and Casualty Insurance | Reinsurance | Parent Company | Consolidated | ||||||||||||
Revenues: | ||||||||||||||||
Premiums earned | $ | 117,878 | $ | 33,166 | $ | — | $ | 151,044 | ||||||||
Investment income, net | 8,362 | 3,241 | 4 | 11,607 | ||||||||||||
Other income | 128 | 902 | — | 1,030 | ||||||||||||
126,368 | 37,309 | 4 | 163,681 | |||||||||||||
Losses and expenses: | ||||||||||||||||
Losses and settlement expenses | 69,162 | 21,633 | — | 90,795 | ||||||||||||
Dividends to policyholders | 2,508 | — | — | 2,508 | ||||||||||||
Amortization of deferred policy acquisition costs | 20,364 | 7,299 | — | 27,663 | ||||||||||||
Other underwriting expenses | 16,624 | 854 | — | 17,478 | ||||||||||||
Interest expense | 84 | — | — | 84 | ||||||||||||
Other expenses | 163 | — | 511 | 674 | ||||||||||||
108,905 | 29,786 | 511 | 139,202 | |||||||||||||
Operating income (loss) before income taxes | 17,463 | 7,523 | (507 | ) | 24,479 | |||||||||||
Realized investment gains | 4,709 | 8 | — | 4,717 | ||||||||||||
Income (loss) before income taxes | 22,172 | 7,531 | (507 | ) | 29,196 | |||||||||||
Income tax expense (benefit): | ||||||||||||||||
Current | 5,646 | 1,122 | (147 | ) | 6,621 | |||||||||||
Deferred | 1,309 | (129 | ) | 103 | 1,283 | |||||||||||
6,955 | 993 | (44 | ) | 7,904 | ||||||||||||
Net income (loss) | $ | 15,217 | $ | 6,538 | $ | (463 | ) | $ | 21,292 | |||||||
Average shares outstanding | 21,132,500 | |||||||||||||||
Per Share Data: | ||||||||||||||||
Net income (loss) per share - basic and diluted | $ | 0.72 | $ | 0.31 | $ | (0.02 | ) | $ | 1.01 | |||||||
Catastrophe and storm losses (after tax) | $ | 0.01 | $ | 0.06 | $ | — | $ | 0.07 | ||||||||
Large losses* (after tax) | N/A | N/A | N/A | N/A | ||||||||||||
Reported favorable development experienced on prior years' reserves (after tax) | $ | 0.24 | $ | 0.12 | $ | — | $ | 0.36 | ||||||||
Favorable development that had no impact on earnings (after tax) | — | — | — | — | ||||||||||||
Implied favorable development that had an impact on earnings (after tax) | $ | 0.24 | $ | 0.12 | $ | — | $ | 0.36 | ||||||||
Dividends per share | $ | 0.210 | ||||||||||||||
Other Information of Interest: | ||||||||||||||||
Premiums written2 | $ | 92,969 | $ | 32,276 | $ | — | $ | 125,245 | ||||||||
Catastrophe and storm losses | $ | 512 | $ | 1,861 | $ | — | $ | 2,373 | ||||||||
Large losses* | N/A | N/A | N/A | N/A | ||||||||||||
Reported favorable development experienced on prior years' reserves | $ | (7,784 | ) | $ | (4,048 | ) | $ | — | $ | (11,832 | ) | |||||
Favorable development that had no impact on earnings | — | — | — | — | ||||||||||||
Implied favorable development that had an impact on earnings | $ | (7,784 | ) | $ | (4,048 | ) | $ | — | $ | (11,832 | ) | |||||
GAAP Ratios: | ||||||||||||||||
Loss and settlement expense ratio | 58.7 | % | 65.2 | % | — | 60.1 | % | |||||||||
Acquisition expense ratio | 33.5 | % | 24.6 | % | — | 31.6 | % | |||||||||
Combined ratio | 92.2 | % | 89.8 | % | — | 91.7 | % |
*Large losses are defined as reported current accident year losses greater than $500 for the EMC Insurance Companies' pool, excluding catastrophe and storm losses. Under the property and casualty insurance segment's prior reserving methodology, large losses had a direct impact on earnings. Under the new reserving methodology implemented during the third quarter of 2016, large losses are taken into consideration when establishing the current accident quarter/year ultimate estimates of losses, but there is no longer a direct relationship between large losses and earnings. As a result, it is no longer meaningful to report large losses separately. |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
($ in thousands, except share and per share amounts) | ||||||||||||||||
Quarter ended December 31, 2015 | Property and Casualty Insurance | Reinsurance | Parent Company | Consolidated | ||||||||||||
Revenues: | ||||||||||||||||
Premiums earned | $ | 113,985 | $ | 27,157 | $ | — | $ | 141,142 | ||||||||
Investment income, net | 8,367 | 3,269 | — | 11,636 | ||||||||||||
Other income (loss) | 189 | (86 | ) | — | 103 | |||||||||||
122,541 | 30,340 | — | 152,881 | |||||||||||||
Losses and expenses: | ||||||||||||||||
Losses and settlement expenses | 76,415 | 13,718 | — | 90,133 | ||||||||||||
Dividends to policyholders | 1,213 | — | — | 1,213 | ||||||||||||
Amortization of deferred policy acquisition costs | 19,698 | 3,663 | — | 23,361 | ||||||||||||
Other underwriting expenses | 16,170 | 1,897 | — | 18,067 | ||||||||||||
Interest expense | 84 | — | — | 84 | ||||||||||||
Other expenses | 180 | — | 518 | 698 | ||||||||||||
113,760 | 19,278 | 518 | 133,556 | |||||||||||||
Operating income (loss) before income taxes | 8,781 | 11,062 | (518 | ) | 19,325 | |||||||||||
Realized investment losses | (3,703 | ) | (1,699 | ) | — | (5,402 | ) | |||||||||
Income (loss) before income taxes | 5,078 | 9,363 | (518 | ) | 13,923 | |||||||||||
Income tax expense (benefit): | ||||||||||||||||
Current | 317 | 2,880 | (180 | ) | 3,017 | |||||||||||
Deferred | 862 | 149 | — | 1,011 | ||||||||||||
1,179 | 3,029 | (180 | ) | 4,028 | ||||||||||||
Net income (loss) | $ | 3,899 | $ | 6,334 | $ | (338 | ) | $ | 9,895 | |||||||
Average shares outstanding | 20,755,198 | |||||||||||||||
Per Share Data: | ||||||||||||||||
Net income (loss) per share - basic and diluted | $ | 0.19 | $ | 0.31 | $ | (0.02 | ) | $ | 0.48 | |||||||
Catastrophe and storm losses (after tax) | $ | 0.03 | $ | 0.08 | $ | — | $ | 0.11 | ||||||||
Large losses* (after tax) | $ | 0.40 | $ | — | $ | — | $ | 0.40 | ||||||||
Reported (adverse) favorable development experienced on prior years' reserves (after tax) | $ | (0.01 | ) | $ | 0.48 | $ | — | $ | 0.47 | |||||||
Favorable development that had no impact on earnings (after tax) | (0.01 | ) | (0.04 | ) | — | (0.05 | ) | |||||||||
Implied (adverse) favorable development that had an impact on earnings (after tax) | $ | (0.02 | ) | $ | 0.44 | $ | — | $ | 0.42 | |||||||
Dividends per share | $ | 0.190 | ||||||||||||||
Other Information of Interest: | ||||||||||||||||
Premiums written2 | $ | 90,105 | $ | 27,590 | $ | — | $ | 117,695 | ||||||||
Catastrophe and storm losses | $ | 958 | $ | 2,661 | $ | — | $ | 3,619 | ||||||||
Large losses* | $ | 12,786 | $ | — | $ | — | $ | 12,786 | ||||||||
Reported adverse (favorable) development experienced on prior years' reserves | $ | 338 | $ | (15,495 | ) | $ | — | $ | (15,157 | ) |
Favorable development that had no impact on earnings | 423 | 1,454 | — | 1,877 | ||||||||||||
Implied adverse (favorable) development that had an impact on earnings | $ | 761 | $ | (14,041 | ) | $ | — | $ | (13,280 | ) | ||||||
GAAP Ratios: | ||||||||||||||||
Loss and settlement expense ratio | 67.0 | % | 50.5 | % | — | 63.9 | % | |||||||||
Acquisition expense ratio | 32.6 | % | 20.5 | % | — | 30.2 | % | |||||||||
Combined ratio | 99.6 | % | 71.0 | % | — | 94.1 | % | |||||||||
*Large losses are defined as reported current accident year losses greater than $500 for the EMC Insurance Companies' pool, excluding catastrophe and storm losses. |
CONSOLIDATED STATEMENTS OF INCOME-UNAUDITED | ||||||||||||||||
($ in thousands, except share and per share amounts) | ||||||||||||||||
Year ended December 31, 2016 | Property and Casualty Insurance | Reinsurance | Parent Company | Consolidated | ||||||||||||
Revenues: | ||||||||||||||||
Premiums earned | $ | 456,467 | $ | 135,941 | $ | — | $ | 592,408 | ||||||||
Investment income, net | 33,886 | 13,591 | 13 | 47,490 | ||||||||||||
Other income | 594 | 417 | — | 1,011 | ||||||||||||
490,947 | 149,949 | 13 | 640,909 | |||||||||||||
Losses and expenses: | ||||||||||||||||
Losses and settlement expenses | 294,369 | 92,528 | — | 386,897 | ||||||||||||
Dividends to policyholders | 13,800 | — | — | 13,800 | ||||||||||||
Amortization of deferred policy acquisition costs | 78,493 | 29,910 | — | 108,403 | ||||||||||||
Other underwriting expenses | 66,463 | 3,149 | — | 69,612 | ||||||||||||
Interest expense | 337 | — | — | 337 | ||||||||||||
Other expenses | 721 | — | 2,006 | 2,727 | ||||||||||||
454,183 | 125,587 | 2,006 | 581,776 | |||||||||||||
Operating income (loss) before income taxes | 36,764 | 24,362 | (1,993 | ) | 59,133 | |||||||||||
Realized investment gains (losses) | 4,082 | (8 | ) | — | 4,074 | |||||||||||
Income (loss) before income taxes | 40,846 | 24,354 | (1,993 | ) | 63,207 | |||||||||||
Income tax expense (benefit): | ||||||||||||||||
Current | 12,071 | 6,723 | (733 | ) | 18,061 | |||||||||||
Deferred | (469 | ) | (623 | ) | 35 | (1,057 | ) | |||||||||
11,602 | 6,100 | (698 | ) | 17,004 | ||||||||||||
Net income (loss) | $ | 29,244 | $ | 18,254 | $ | (1,295 | ) | $ | 46,203 | |||||||
Average shares outstanding | 21,006,302 | |||||||||||||||
Per Share Data: | ||||||||||||||||
Net income (loss) per share - basic and diluted | $ | 1.39 | $ | 0.87 | $ | (0.06 | ) | $ | 2.20 | |||||||
Catastrophe and storm losses (after tax) | $ | 1.09 | $ | 0.39 | $ | — | $ | 1.48 | ||||||||
Large losses* (after tax) | N/A | N/A | N/A | N/A | ||||||||||||
Reported favorable development experienced on prior years' reserves (after tax) | $ | 0.93 | $ | 0.34 | $ | — | $ | 1.27 | ||||||||
Favorable development that had no impact on earnings (after tax) | (0.17 | ) | — | — | (0.17 | ) | ||||||||||
Implied favorable development that had an impact on earnings (after tax) | $ | 0.76 | $ | 0.34 | $ | — | $ | 1.10 | ||||||||
Dividends per share | $ | 0.780 | ||||||||||||||
Book value per share | $ | 26.07 | ||||||||||||||
Effective tax rate | 26.9 | % |
Net income as a percent of beg. SH equity | 8.8 | % | ||||||||||||||
Other Information of Interest: | ||||||||||||||||
Premiums written2 | $ | 463,673 | $ | 131,030 | $ | — | $ | 594,703 | ||||||||
Catastrophe and storm losses | $ | 35,299 | $ | 12,608 | $ | — | $ | 47,907 | ||||||||
Large losses* | N/A | N/A | N/A | N/A | ||||||||||||
Reported favorable development experienced on prior years' reserves | $ | (30,013 | ) | $ | (10,928 | ) | $ | — | $ | (40,941 | ) | |||||
Favorable development that had no impact on earnings | 5,592 | — | — | 5,592 | ||||||||||||
Implied favorable development that had an impact on earnings | $ | (24,421 | ) | $ | (10,928 | ) | $ | — | $ | (35,349 | ) | |||||
GAAP Ratios: | ||||||||||||||||
Loss and settlement expense ratio | 64.5 | % | 68.1 | % | — | 65.3 | % | |||||||||
Acquisition expense ratio | 34.8 | % | 24.3 | % | — | 32.4 | % | |||||||||
Combined ratio | 99.3 | % | 92.4 | % | — | 97.7 | % | |||||||||
*Large losses are defined as reported current accident year losses greater than $500 for the EMC Insurance Companies' pool, excluding catastrophe and storm losses. Under the property and casualty insurance segment's prior reserving methodology, large losses had a direct impact on earnings. Under the new reserving methodology implemented during the third quarter of 2016, large losses are taken into consideration when establishing the current accident quarter/year ultimate estimates of losses, but there is no longer a direct relationship between large losses and earnings. As a result, it is no longer meaningful to report large losses separately. The amount of large losses previously reported for the first six months of 2016 has not been carried forward and disclosed for the year ended December 31, 2016, because it would not be comparable to the amount reported for 2015. |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
($ in thousands, except share and per share amounts) | ||||||||||||||||
Year ended December 31, 2015 | Property and Casualty Insurance | Reinsurance | Parent Company | Consolidated | ||||||||||||
Revenues: | ||||||||||||||||
Premiums earned | $ | 447,197 | $ | 123,069 | $ | — | $ | 570,266 | ||||||||
Investment income, net | 32,668 | 12,923 | (9 | ) | 45,582 | |||||||||||
Other income | 771 | 954 | — | 1,725 | ||||||||||||
480,636 | 136,946 | (9 | ) | 617,573 | ||||||||||||
Losses and expenses: | ||||||||||||||||
Losses and settlement expenses | 291,883 | 78,853 | — | 370,736 | ||||||||||||
Dividends to policyholders | 7,705 | — | — | 7,705 | ||||||||||||
Amortization of deferred policy acquisition costs | 75,701 | 26,483 | — | 102,184 | ||||||||||||
Other underwriting expenses | 63,954 | 4,464 | — | 68,418 | ||||||||||||
Interest expense | 337 | — | — | 337 | ||||||||||||
Other expenses | 748 | — | 1,942 | 2,690 | ||||||||||||
440,328 | 109,800 | 1,942 | 552,070 | |||||||||||||
Operating income (loss) before income taxes | 40,308 | 27,146 | (1,951 | ) | 65,503 | |||||||||||
Realized investment gains | 4,163 | 1,990 | — | 6,153 | ||||||||||||
Income (loss) before income taxes | 44,471 | 29,136 | (1,951 | ) | 71,656 | |||||||||||
Income tax expense (benefit): | ||||||||||||||||
Current | 10,830 | 8,463 | (682 | ) | 18,611 | |||||||||||
Deferred | 2,174 | 709 | — | 2,883 | ||||||||||||
13,004 | 9,172 | (682 | ) | 21,494 | ||||||||||||
Net income (loss) | $ | 31,467 | $ | 19,964 | $ | (1,269 | ) | $ | 50,162 | |||||||
Average shares outstanding | 20,621,919 | |||||||||||||||
Per Share Data: | ||||||||||||||||
Net income (loss) per share - basic and diluted | $ | 1.52 | $ | 0.97 | $ | (0.06 | ) | $ | 2.43 | |||||||
Catastrophe and storm losses (after tax) | $ | 0.93 | $ | 0.47 | $ | — | $ | 1.40 |
Large losses* (after tax) | $ | 1.08 | $ | — | $ | — | $ | 1.08 | ||||||||
Reported favorable development experienced on prior years' reserves (after tax) | $ | 0.44 | $ | 0.67 | $ | — | $ | 1.11 | ||||||||
(Favorable) adverse development that had no impact on earnings (after tax) | (0.02 | ) | 0.03 | — | 0.01 | |||||||||||
Implied favorable development that had an impact on earnings (after tax) | $ | 0.42 | $ | 0.70 | $ | — | $ | 1.12 | ||||||||
Dividends per share | $ | 0.693 | ||||||||||||||
Book value per share | $ | 25.26 | ||||||||||||||
Effective tax rate | 30.0 | % | ||||||||||||||
Net income as a percent of beg. SH equity | 10.0 | % | ||||||||||||||
Other Information of Interest: | ||||||||||||||||
Premiums written2 | $ | 454,434 | $ | 124,504 | $ | — | $ | 578,938 | ||||||||
Catastrophe and storm losses | $ | 29,609 | $ | 14,765 | $ | — | $ | 44,374 | ||||||||
Large losses* | $ | 34,239 | $ | — | $ | — | $ | 34,239 | ||||||||
Reported favorable development experienced on prior years' reserves | $ | (13,839 | ) | $ | (21,275 | ) | $ | — | $ | (35,114 | ) | |||||
Favorable (adverse) development that had no impact on earnings | 423 | (1,041 | ) | — | (618 | ) | ||||||||||
Implied favorable development that had an impact on earnings | $ | (13,416 | ) | $ | (22,316 | ) | $ | — | $ | (35,732 | ) | |||||
GAAP Ratios: | ||||||||||||||||
Loss and settlement expense ratio | 65.3 | % | 64.1 | % | — | 65.0 | % | |||||||||
Acquisition expense ratio | 32.9 | % | 25.1 | % | — | 31.3 | % | |||||||||
Combined ratio | 98.2 | % | 89.2 | % | — | 96.3 | % | |||||||||
*Large losses are defined as reported current accident year losses greater than $500 for the EMC Insurance Companies' pool, excluding catastrophe and storm losses. |
CONSOLIDATED BALANCE SHEETS | ||||||||
December 31, 2016 | December 31, 2015 | |||||||
($ in thousands, except share and per share amounts) | (Unaudited) | |||||||
ASSETS | ||||||||
Investments: | ||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost $1,189,525 and $1,130,217) | $ | 1,199,699 | $ | 1,161,025 | ||||
Equity securities available-for-sale, at fair value (cost $147,479 and $144,176) | 213,839 | 206,243 | ||||||
Other long-term investments | 12,506 | 9,930 | ||||||
Short-term investments | 39,670 | 38,599 | ||||||
Total investments | 1,465,714 | 1,415,797 | ||||||
Cash | 307 | 224 | ||||||
Reinsurance receivables due from affiliate | 21,326 | 24,236 | ||||||
Prepaid reinsurance premiums due from affiliate | 9,309 | 6,563 | ||||||
Deferred policy acquisition costs (affiliated $40,660 and $40,535) | 40,939 | 40,720 | ||||||
Prepaid pension and postretirement benefits due from affiliate | 12,314 | 12,133 | ||||||
Accrued investment income | 11,050 | 10,789 | ||||||
Amounts receivable under reverse repurchase agreements | 20,000 | 16,850 | ||||||
Accounts receivable | 2,076 | 804 | ||||||
Income taxes recoverable | — | 1,735 | ||||||
Goodwill | 942 | 942 | ||||||
Other assets (affiliated $4,632 and $4,595) | 4,836 | 5,162 | ||||||
Total assets | $ | 1,588,813 | $ | 1,535,955 | ||||
LIABILITIES | ||||||||
Losses and settlement expenses (affiliated $685,533 and $671,169) | $ | 690,532 | $ | 678,774 | ||||
Unearned premiums (affiliated $243,682 and $238,637) | 244,885 | 239,435 | ||||||
Other policyholders' funds (all affiliated) | 13,068 | 8,721 | ||||||
Surplus notes payable to affiliate | 25,000 | 25,000 | ||||||
Amounts due affiliate to settle inter-company transaction balances | 11,222 | 6,408 | ||||||
Pension benefits payable to affiliate | 4,097 | 4,299 | ||||||
Income taxes payable | 2,359 | — | ||||||
Deferred income taxes | 11,321 | 19,029 | ||||||
Other liabilities (affiliated $27,871 and $28,598) | 32,987 | 29,351 | ||||||
Total liabilities | 1,035,471 | 1,011,017 | ||||||
STOCKHOLDERS' EQUITY | ||||||||
Common stock, $1 par value, authorized 30,000,000 shares; issued and outstanding, 21,222,535 shares in 2016 and 20,780,439 shares in 2015 | 21,223 | 20,781 | ||||||
Additional paid-in capital | 119,054 | 108,747 | ||||||
Accumulated other comprehensive income | 46,081 | 58,433 | ||||||
Retained earnings | 366,984 | 336,977 | ||||||
Total stockholders' equity | 553,342 | 524,938 | ||||||
Total liabilities and stockholders' equity | $ | 1,588,813 | $ | 1,535,955 |
LOSS AND SETTLEMENT EXPENSE BY LINE OF BUSINESS | ||||||||||||||||||||||
Three months ended December 31, | ||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
($ in thousands) | Premiums earned | Losses and settlement expenses | Loss and settlement expense ratio | Premiums earned | Losses and settlement expenses | Loss and settlement expense ratio | ||||||||||||||||
Property and casualty insurance | ||||||||||||||||||||||
Commercial lines: | ||||||||||||||||||||||
Automobile | $ | 28,492 | $ | 23,601 | 82.8 | % | $ | 27,206 | $ | 24,291 | 89.3 | % | ||||||||||
Property | 27,720 | 11,822 | 42.6 | % | 26,785 | 12,154 | 45.4 | % | ||||||||||||||
Workers' compensation | 25,245 | 11,691 | 46.3 | % | 23,678 | 18,212 | 76.9 | % | ||||||||||||||
Liability | 24,544 | 18,693 | 76.2 | % | 23,713 | 13,731 | 57.9 | % | ||||||||||||||
Other | 2,128 | (660 | ) | (31.0 | )% | 2,035 | 60 | 3.0 | % | |||||||||||||
Total commercial lines | 108,129 | 65,147 | 60.2 | % | 103,417 | 68,448 | 66.2 | % | ||||||||||||||
Personal lines | 9,749 | 4,015 | 41.2 | % | 10,568 | 7,967 | 75.4 | % | ||||||||||||||
Total property and casualty insurance | $ | 117,878 | $ | 69,162 | 58.7 | % | $ | 113,985 | $ | 76,415 | 67.0 | % | ||||||||||
Reinsurance | ||||||||||||||||||||||
Pro rata reinsurance | $ | 12,142 | $ | 5,131 | 42.3 | % | $ | 7,267 | $ | 5,965 | 82.1 | % | ||||||||||
Excess of loss reinsurance | 21,024 | 16,502 | 78.5 | % | 19,890 | 7,753 | 39.0 | % | ||||||||||||||
Total reinsurance | $ | 33,166 | $ | 21,633 | 65.2 | % | $ | 27,157 | $ | 13,718 | 50.5 | % | ||||||||||
Consolidated | $ | 151,044 | $ | 90,795 | 60.1 | % | $ | 141,142 | $ | 90,133 | 63.9 | % |
Year ended December 31, | ||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
($ in thousands) | Premiums earned | Losses and settlement expenses | Loss and settlement expense ratio | Premiums earned | Losses and settlement expenses | Loss and settlement expense ratio | ||||||||||||||||
Property and casualty insurance | ||||||||||||||||||||||
Commercial lines: | ||||||||||||||||||||||
Automobile | $ | 110,941 | $ | 93,364 | 84.2 | % | $ | 105,904 | $ | 86,134 | 81.3 | % | ||||||||||
Property | 105,012 | 64,509 | 61.4 | % | 104,303 | 65,806 | 63.1 | % | ||||||||||||||
Workers' compensation | 96,517 | 51,371 | 53.2 | % | 92,828 | 57,803 | 62.3 | % | ||||||||||||||
Liability | 96,630 | 56,738 | 58.7 | % | 92,665 | 48,399 | 52.2 | % | ||||||||||||||
Other | 8,374 | (12 | ) | (0.1 | )% | 8,079 | 854 | 10.6 | % | |||||||||||||
Total commercial lines | 417,474 | 265,970 | 63.7 | % | 403,779 | 258,996 | 64.1 | % | ||||||||||||||
Personal lines | 38,993 | 28,399 | 72.8 | % | 43,418 | 32,887 | 75.7 | % | ||||||||||||||
Total property and casualty insurance | $ | 456,467 | $ | 294,369 | 64.5 | % | $ | 447,197 | $ | 291,883 | 65.3 | % | ||||||||||
Reinsurance | ||||||||||||||||||||||
Pro rata reinsurance | $ | 56,317 | $ | 31,498 | 55.9 | % | $ | 47,421 | $ | 29,433 | 62.1 | % | ||||||||||
Excess of loss reinsurance | 79,624 | 61,030 | 76.6 | % | 75,648 | 49,420 | 65.3 | % | ||||||||||||||
Total reinsurance | $ | 135,941 | $ | 92,528 | 68.1 | % | $ | 123,069 | $ | 78,853 | 64.1 | % | ||||||||||
Consolidated | $ | 592,408 | $ | 386,897 | 65.3 | % | $ | 570,266 | $ | 370,736 | 65.0 | % |
PREMIUMS WRITTEN2 | ||||||||||||||||
Three months ended December 31, 2016 | Three months ended December 31, 2015 | |||||||||||||||
($ in thousands) | Premiums written | Percent of premiums written | Premiums written | Percent of premiums written | Change in premiums written | |||||||||||
Property and casualty insurance | ||||||||||||||||
Commercial lines: | ||||||||||||||||
Automobile | $ | 23,199 | 18.5 | % | $ | 21,735 | 18.5 | % | 6.7% | |||||||
Property | 21,066 | 16.8 | % | 20,818 | 17.7 | % | 1.2% | |||||||||
Workers' compensation | 18,613 | 14.9 | % | 17,717 | 15.0 | % | 5.1% | |||||||||
Liability | 19,359 | 15.5 | % | 19,095 | 16.2 | % | 1.4% | |||||||||
Other | 1,783 | 1.4 | % | 1,619 | 1.4 | % | 10.1% | |||||||||
Total commercial lines | 84,020 | 67.1 | % | 80,984 | 68.8 | % | 3.7% | |||||||||
Personal lines | 8,949 | 7.1 | % | 9,121 | 7.8 | % | (1.9)% | |||||||||
Total property and casualty insurance | $ | 92,969 | 74.2 | % | $ | 90,105 | 76.6 | % | 3.2% | |||||||
Reinsurance | ||||||||||||||||
Pro rata reinsurance | $ | 10,918 | 8.7 | % | $ | 8,420 | 7.1 | % | 29.7% | |||||||
Excess of loss reinsurance | 21,358 | 17.1 | % | 19,170 | 16.3 | % | 11.4% | |||||||||
Total reinsurance | $ | 32,276 | 25.8 | % | $ | 27,590 | 23.4 | % | 17.0% | |||||||
Consolidated | $ | 125,245 | 100.0 | % | $ | 117,695 | 100.0 | % | 6.4% |
Year ended December 31, 2016 | Year ended December 31, 2015 | |||||||||||||||
($ in thousands) | Premiums written | Percent of premiums written | Premiums written | Percent of premiums written | Change in premiums written | |||||||||||
Property and casualty insurance | ||||||||||||||||
Commercial lines: | ||||||||||||||||
Automobile | $ | 113,173 | 19.1 | % | $ | 108,682 | 18.7 | % | 4.1% | |||||||
Property | 106,600 | 17.9 | % | 106,671 | 18.4 | % | (0.1)% | |||||||||
Workers' compensation | 99,509 | 16.7 | % | 94,629 | 16.4 | % | 5.2% | |||||||||
Liability | 97,815 | 16.5 | % | 94,860 | 16.4 | % | 3.1% | |||||||||
Other | 8,646 | 1.4 | % | 8,032 | 1.4 | % | 7.6% | |||||||||
Total commercial lines | 425,743 | 71.6 | % | 412,874 | 71.3 | % | 3.1% | |||||||||
Personal lines | 37,930 | 6.4 | % | 41,560 | 7.2 | % | (8.7)% | |||||||||
Total property and casualty insurance | $ | 463,673 | 78.0 | % | $ | 454,434 | 78.5 | % | 2.0% | |||||||
Reinsurance | ||||||||||||||||
Pro rata reinsurance | $ | 52,996 | 8.9 | % | $ | 48,652 | 8.4 | % | 8.9% | |||||||
Excess of loss reinsurance | 78,034 | 13.1 | % | 75,852 | 13.1 | % | 2.9% | |||||||||
Total reinsurance | $ | 131,030 | 22.0 | % | $ | 124,504 | 21.5 | % | 5.2% | |||||||
Consolidated | $ | 594,703 | 100.0 | % | $ | 578,938 | 100.0 | % | 2.7% |
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