EX-99.1 2 a06-3404_1ex99d1.htm EXHIBIT 99

Exhibit 99.1

 

NEWS RELEASE

 

 

RLI Corp.

9025 N. Lindbergh Dr. ½ Peoria, IL 61615-1499

Phone: 309-692-1000 ½ Fax: 309-692-1068

www.rlicorp.com

 

FOR IMMEDIATE RELEASE

 

CONTACT: Aaron Jacoby

 

 

(309) 693-5880

 

 

Aaron_Jacoby@rlicorp.com

 

 

www.rlicorp.com

 

RLI sets record year

 

PEORIA, ILLINOIS, January 24, 2006 — RLI Corp. (NYSE: RLI) – RLI Corp. reported 2005 net earnings of $107.1 million ($4.07 per diluted share), compared to $73.0 million ($2.80 per diluted share) reported last year.

 

Earnings Per Diluted Share

 

2005

 

2004

 

2003

 

Net earnings

 

$

4.07

 

$

2.80

 

$

2.76

 

Operating earnings

 

$

3.67

 

$

2.47

 

$

2.27

 

 

Other significant accomplishments for the year include:

 

•                  $96.5 million of operating earnings ($3.67 per share)

•                  86.0 combined ratio across all segments

•                  10.1% growth in book value per share, to $27.12

•                  $198 million of net operating cash flow

•                  14.0% growth in investment income

 

“On behalf of all RLI associates, I am extremely proud to present these results to our shareholders,” said RLI Corp. President & CEO Jonathan E. Michael.  “We generated a 21.6% shareholder return from dividends and stock price appreciation in 2005. We also delivered an exceptional 86.0 combined ratio, marking the 10th consecutive year RLI has achieved a combined ratio below 100. These strong 2005 results occurred against a backdrop of unprecedented industry-wide hurricane losses.  RLI’s ability to sustain these losses – and prosper – illustrates the advantage of our diversified portfolio of specialty insurance products.”

 

The following significant items affected earnings in 2005. A table on page four provides additional information to this summary:

 

•                  $45.7 million pretax ($1.13 per share) of favorable loss development from prior years’ reserves.

•                  $18.0 million pretax ($0.44 per share) hurricane loss, including favorable development of 2004 hurricanes.

•                  $12.2 million pretax ($0.30 per share) underwriting loss attributable to construction coverage in the fourth quarter. During the quarter, RLI withdrew from certain construction coverages within the property segment due to continued poor performance.

•                  $4.5 million after tax ($0.17 per share) gain in the fourth quarter as a result of favorable tax treatment on a dividend from unconsolidated investee Maui Jim. In January, 2006 the board of directors of Maui Jim, Inc. declared a dividend that will be payable in the first quarter of 2006. RLI’s share of the cash dividend will be $16.5 million.

 

Each of these items includes bonus-related impacts which affected other insurance and general corporate expenses.

 

— more —

 


 

Final quarter results affected by Hurricane Wilma and construction loss

 

Net earnings for the fourth quarter were $18.1 million ($0.68 per share) versus $29.5 million ($1.13 per share) last year. The quarter, in addition to the construction loss ($12.2 million, $0.30 per share) and the tax benefit attributable to the Maui Jim dividend ($4.5 million, $0.17 per share), included other significant items. A table on page four provides additional information to this summary:

 

•                  $16.9 million of operating earnings ($0.64 per share) compared to $26.8 million ($1.02 per share) for the same period last year

•                  100.4 combined ratio versus 81.3 from 2004’s fourth quarter

•                  $4.8 million pretax ($0.12 per share) hurricane loss, including favorable development of previous 2004 and 2005 hurricanes

•                  $3.6 million pretax ($0.09 per share) of favorable loss development from prior years’ accident reserves in the surety and casualty segments

 

Underwriting profit for 10th straight year

 

RLI achieved $68.9 million of underwriting income in 2005 on an 86.0 combined ratio compared to $39.9 million of underwriting income on a 92.2 combined ratio in 2004. For the quarter, RLI recorded an underwriting loss of $0.4 million on a 100.4 combined ratio versus $24.4 million of underwriting income on an 81.3 combined ratio in the fourth quarter of 2004.  The 2005 fourth quarter loss was driven by Hurricane Wilma and the construction loss, and was partially offset by favorable reserve development. The following table highlights annual gross premiums written and combined ratios by segment:

 

Gross Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Written (in millions)

 

2005

 

2004

 

2003

 

Combined Ratio

 

2005

 

2004

 

2003

 

Casualty

 

$

519.1

 

$

519.8

 

$

497.7

 

Casualty

 

80.0

 

94.7

 

98.4

 

Property

 

176.2

 

178.6

 

193.4

 

Property

 

110.3

 

79.2

 

63.8

 

Surety

 

60.7

 

54.2

 

51.4

 

Surety

 

90.0

 

100.2

 

114.2

 

Total

 

$

756.0

 

$

752.6

 

$

742.5

 

Total

 

86.0

 

92.2

 

92.0

 

 

“Although most of our products experienced very strong results, our construction book was a notable exception,” said Michael. “Part of the resiliency of RLI’s business plan is that we have the agility to enter lines of business that look promising, as we did with RLI Marine in the second quarter of this year. This nimbleness also means we can, and sometimes have to, exit a business that isn’t performing up to expectations.”

 

Hurricane losses, including favorable development of estimates from prior events, increased the full year combined ratio by 3.8 points and the quarter by 4.2 points.  Favorable reserve development primarily from casualty lines improved the combined ratio for the year by 9.5 points and the quarter by 3.1 points.

 

Gross premiums written were up 0.5% for the year and 11.2% in the fourth quarter.

 

Casualty

 

RLI’s casualty segment’s gross premiums written were flat for the year, but grew 3.8% in the fourth quarter. The combined ratios – 80.0 for the year and 86.4 for the quarter – were both driven by strong underlying profitability and favorable reserve development.

 

Property

 

RLI’s property segment’s gross premiums written were down 1.3% for the year and up 36.3% in the fourth quarter.  The 2005 premium volume was negatively influenced by the exit from certain construction policies, while the fourth quarter’s growth was driven by market penetration of excess & surplus lines policies as well as rate increases in select geographic areas. The $8.3 million of underwriting loss for the year and $15.3 million for the quarter reflects both

 

2


 

the hurricane and construction impacts. These results drove the year-end combined ratio of 110.3, which contrasts to last year’s 79.2 year-end combined ratio, itself hindered by the four Southeast hurricanes of 2004.

 

Surety

 

RLI’s surety segment’s gross premiums written were up 12.0% for the year and up 15.4% in the fourth quarter. This growth was achieved with continued strong combined ratios – 90.0 for the year and 79.4 in the fourth quarter– both aided slightly by favorable reserve development.

 

In commenting on current marketplace conditions, Michael noted, “Our property underwriters are starting to report new business opportunities as other companies restrict activity in the Gulf region. RLI remains committed to the area and will apply our proven underwriting standards as we review these opportunities. Reinsurance costs for these coverages have also risen, and we have already started to see a firming pricing environment. Casualty business should remain relatively stable, which represents an improvement over recent softening trends. Surety remains healthy and recent growth trends should persist.

 

“A solid balance sheet and reserve strength are hallmarks of RLI,” continued Michael. “As we enter 2006, our balance sheet remains strong and we are well-positioned in what promises to be improving marketplace conditions.”

 

Investment and other income

 

Year-end investment income grew 14.0% due to continued positive operating cash flows, from $54.1 million in 2004 to $61.6 million in 2005. Investment income for the quarter reached $16.5 million, an 11.9% increase over the fourth quarter of last year.

 

The investment portfolio’s total return for 2005 was 3.3%. The bond portfolio gained 3.1% and the equity portfolio’s return was 4.4%. For the quarter, the portfolio’s total return was 0.6% based on a bond portfolio return of 0.7% and an equity portfolio return of 0.1%.

 

In addition to the investment portfolio results, equity in earnings of unconsolidated investees in 2005 was $10.9 million compared to $5.4 million in 2004, primarily due to the performance of Maui Jim. During the fourth quarter of 2005, equity in earnings of unconsolidated investees was $2.5 million versus $1.1 million for the same period in 2004.  Higher sales and continued strong operating performance by Maui Jim drove the growth in the current quarter and year versus the comparable periods of 2004.

 

Comprehensive earnings, which include after-tax unrealized gains/losses from the investment portfolio, were $83.9 million for the year ($3.19 per share) compared to $81.4 million ($3.12 per share) in 2004. Quarterly comprehensive earnings were $10.9 million ($0.41 per share) versus $39.1 million ($1.49 per share) last year.

 

Other RLI news

 

The company paid a fourth quarter cash dividend of $0.17 per share on January 13, 2006, which reflected a $0.01 increase over the prior quarter. 2005 marked the 30th consecutive year that RLI has increased dividends. Dividends for the year increased 23.5% to $0.63 per share.

 

At 3:15 p.m. CDT today, January 24, RLI management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion through the Internet at RLI’s website, www.rlicorp.com.

 

3


 

Except for historical information, this news release may include forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) including, without limitation, statements reflecting our current expectations about the future performance of our company or our business segments or about future market conditions.  These statements are subject to certain risk factors that could cause actual results to differ materially. Various risk factors that could affect future results are listed in the company’s filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2004.

 

RLI, a specialty insurance company, offers a diversified portfolio of property and casualty coverages and surety bonds serving “niche” or underserved markets. RLI operates in all 50 states from 23 office locations. The company’s talented associates have delivered underwriting profits in 25 of the last 29 years, including the last 10.

 

RLI’s insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and RLI Indemnity Company – are rated A+ “Superior” by A.M. Best Company and A+ “Strong” by Standard & Poor’s.

 

For additional information, contact RLI Vice President, Corporate Development Aaron Jacoby at (309) 693-5880 or at aaron_jacoby@rlicorp.com, or visit our website at www.rlicorp.com.

 

Supplemental disclosure regarding the earnings impact of specific items:

 

 

 

 

Operating Earnings Per Share

 

 

 

2005

 

2004

 

 

 

4th Qtr

 

Full Year

 

4th Qtr

 

Full Year

 

Operating Earnings Per Share

 

$

0.64

 

$

3.67

 

$

1.02

 

$

2.47

 

 

 

 

 

 

 

 

 

 

 

Specific gain/(loss) items:

 

 

 

 

 

 

 

 

 

•             (Loss) from 2005 Hurricanes Katrina, Rita and
Wilma (1)

 

$

(0.17

)

$

(0.58

)

—

 

—

 

•             Gain/(loss) from 2004 Southeast U.S.
hurricanes (1)(2)

 

$

0.05

 

$

0.14

 

$

0.04

 

$

(0.38

)

•             Gain from favorable reserve development (1)

 

$

0.09

 

$

1.13

 

$

0.29

 

$

0.29

 

•             (Loss) on construction coverage (1)

 

$

(0.30

)

$

(0.30

)

—

 

—

 

 

 

 

 

 

 

 

 

 

 

•             Gain from change in tax rate applicable to the $16.5 million dividend from Maui Jim (1)(3)

 

$

0.17

 

$

0.17

 

—

 

—

 

 

(1)          Includes bonus-related impacts which affected other insurance and general corporate expenses.

(2)          Gains reflect reductions in previously estimated losses.

(3)          As required under Statement of Financial Accounting Standards 109, “Accounting for Income Taxes,” the gain reflects the tax benefit of applying the lower tax rate applicable to affiliated dividends (7%) as compared to the corporate capital gains tax rate (35%) on which previous tax estimates were based.

 

4


 

RLI CORP.

2005 FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share amounts)

 

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

 

 

2005

 

2004

 

% Change

 

2005

 

2004

 

% Change

 

SUMMARIZED INCOME STATEMENT DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

 

$

117,464

 

$

130,556

 

-10.0

%

$

491,307

 

$

511,348

 

-3.9

%

Net investment income

 

16,508

 

14,756

 

11.9

%

61,641

 

54,087

 

14.0

%

Net realized investment gains

 

1,787

 

4,139

 

-56.8

%

16,354

 

13,365

 

22.4

%

Consolidated revenue

 

135,759

 

149,451

 

-9.2

%

569,302

 

578,800

 

-1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and settlement expenses

 

75,493

 

61,768

 

22.2

%

251,170

 

306,131

 

-18.0

%

Policy acquisition costs

 

33,787

 

34,999

 

-3.5

%

136,058

 

134,595

 

1.1

%

Other insurance expenses

 

8,566

 

9,369

 

-8.6

%

35,196

 

30,731

 

14.5

%

Interest expense on debt

 

1,701

 

1,766

 

-3.7

%

7,118

 

6,894

 

3.2

%

General corporate expenses

 

1,670

 

2,013

 

-17.0

%

6,780

 

5,536

 

22.5

%

Total expenses

 

121,217

 

109,915

 

10.3

%

436,322

 

483,887

 

-9.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated investees

 

2,505

 

1,063

 

135.7

%

10,896

 

5,429

 

100.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

17,047

 

40,599

 

-58.0

%

143,876

 

100,342

 

43.4

%

Income tax expense

 

(1,058

)

11,130

 

-109.5

%

36,742

 

27,306

 

34.6

%

Net Earnings

 

$

18,105

 

$

29,469

 

-38.6

%

$

107,134

 

$

73,036

 

46.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive earnings (loss), net of tax

 

(7,244

)

9,624

 

-175.3

%

(23,232

)

8,318

 

-379.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive earnings

 

$

10,861

 

$

39,093

 

-72.2

%

$

83,902

 

$

81,354

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Earnings:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Earnings

 

$

18,105

 

$

29,469

 

-38.6

%

$

107,134

 

$

73,036

 

46.7

%

Less: Realized investment gains, net of tax

 

1,161

 

2,690

 

-56.8

%

10,630

 

8,687

 

22.4

%

Operating earnings

 

$

16,944

 

$

26,779

 

-36.7

%

$

96,504

 

$

64,349

 

50.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (trailing four quarters)

 

 

 

 

 

 

 

16.2

%

12.5

%

 

 

Comprehensive earnings (trailing four quarters)

 

 

 

 

 

 

 

12.7

%

14.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in 000’s)

 

26,461

 

26,155

 

 

 

26,324

 

26,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS from operations (1)

 

$

0.64

 

$

1.02

 

-37.3

%

$

3.67

 

$

2.47

 

48.6

%

Realized gains, net of tax

 

0.04

 

0.11

 

-63.6

%

0.40

 

0.33

 

21.2

%

Net earnings per share

 

$

0.68

 

$

1.13

 

-39.8

%

$

4.07

 

$

2.80

 

45.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive earnings per share

 

$

0.41

 

$

1.49

 

-72.5

%

$

3.19

 

$

3.12

 

2.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends per share

 

$

0.17

 

$

0.14

 

21.4

%

$

0.63

 

$

0.51

 

23.5

%

 

(1)         Operating earnings and EPS from operations consist of our net earnings reduced by after-tax realized investment gains/losses.  This measure is useful in gauging our core operating performance across reporting periods, but may not be comparable to the definition of operating earnings used by all companies.

 

5


 

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

 

 

2005

 

2004

 

% Change

 

2005

 

2004

 

% Change

 

Total Gross Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

198,444

 

178,495

 

11.2

%

$

756,012

 

752,588

 

0.5

%

Net investment income

 

16,508

 

14,756

 

11.9

%

61,641

 

54,087

 

14.0

%

Net realized investment gains

 

1,787

 

4,139

 

-56.8

%

16,354

 

13,365

 

22.4

%

Total

 

$

216,739

 

$

197,390

 

9.8

%

$

834,007

 

$

820,040

 

1.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Flow from Operations

 

$

50,410

 

$

13,645

 

269.4

%

$

198,027

 

$

188,962

 

4.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,
2005

 

December 31,
2004

 

% Change

 

 

 

 

 

 

 

SUMMARIZED BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income and short-term investments

 

$

1,376,695

 

$

1,253,843

 

9.8

%

 

 

 

 

 

 

(amortized cost - $1,384,620 at 12/31/05)

 

 

 

 

 

 

 

 

 

 

 

 

 

(amortized cost - $1,237,361 at 12/31/04)

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

321,096

 

315,875

 

1.7

%

 

 

 

 

 

 

(cost - $186,417 at 12/31/05)

 

 

 

 

 

 

 

 

 

 

 

 

 

(cost - $169,479 at 12/31/04)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investments

 

1,697,791

 

1,569,718

 

8.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums and reinsurance balances receivable

 

126,894

 

146,667

 

-13.5

%

 

 

 

 

 

 

Ceded unearned premiums

 

114,668

 

101,446

 

13.0

%

 

 

 

 

 

 

Reinsurance recoverable on unpaid losses

 

593,209

 

464,180

 

27.8

%

 

 

 

 

 

 

Deferred acquisition costs

 

69,477

 

67,146

 

3.5

%

 

 

 

 

 

 

Property and equipment

 

20,859

 

18,335

 

13.8

%

 

 

 

 

 

 

Investment in unconsolidated investees

 

54,340

 

43,398

 

25.2

%

 

 

 

 

 

 

Goodwill

 

26,214

 

26,214

 

0.0

%

 

 

 

 

 

 

Other assets

 

32,418

 

31,671

 

2.4

%

 

 

 

 

 

 

Total assets

 

$

2,735,870

 

$

2,468,775

 

10.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unpaid losses and settlement expenses

 

1,331,866

 

1,132,599

 

17.6

%

 

 

 

 

 

 

Unearned premiums

 

383,683

 

367,205

 

4.5

%

 

 

 

 

 

 

Reinsurance balances payable

 

97,526

 

78,062

 

24.9

%

 

 

 

 

 

 

Short-term debt

 

15,541

 

46,839

 

-66.8

%

 

 

 

 

 

 

Long-term debt - bonds payable

 

100,000

 

100,000

 

0.0

%

 

 

 

 

 

 

Income taxes - deferred

 

22,717

 

38,966

 

-41.7

%

 

 

 

 

 

 

Other liabilities

 

91,596

 

81,443

 

12.5

%

 

 

 

 

 

 

Total liabilities

 

2,042,929

 

1,845,114

 

10.7

%

 

 

 

 

 

 

Shareholders’ equity

 

692,941

 

623,661

 

11.1

%

 

 

 

 

 

 

Total liabilities & shareholders’ equity

 

$

2,735,870

 

$

2,468,775

 

10.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (in 000’s)

 

25,551

 

25,316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book Value per share

 

$

27.12

 

$

24.64

 

10.1

%

 

 

 

 

 

 

Closing stock price per share

 

$

49.87

 

$

41.57

 

20.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statutory Surplus

 

$

690,547

 

$

605,967

 

14.0

%

 

 

 

 

 

 

 

6


 

UNDERWRITING SEGMENT DATA

(in thousands)

 

 

 

Property

 

GAAP
Ratios

 

Surety

 

GAAP
Ratios

 

Casualty

 

GAAP
Ratios

 

Total

 

GAAP
Ratios

 

Three Months Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premium written

 

$

49,937

 

 

 

$

13,007

 

 

 

$

135,500

 

 

 

$

198,444

 

 

 

Net premium written

 

18,479

 

 

 

12,350

 

 

 

87,668

 

 

 

118,497

 

 

 

Net premium earned

 

14,868

 

 

 

14,062

 

 

 

88,534

 

 

 

117,464

 

 

 

Net loss & settlement expenses

 

20,318

 

136.7

%

2,232

 

15.9

%

52,943

 

59.8

%

75,493

 

64.3

%

Net operating expenses

 

9,868

 

66.4

%

8,929

 

63.5

%

23,556

 

26.6

%

42,353

 

36.1

%

Underwriting income(loss)

 

$

(15,318

)

203.1

%

$

2,901

 

79.4

%

$

12,035

 

86.4

%

$

(382

)

100.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premium written

 

$

36,628

 

 

 

$

11,270

 

 

 

$

130,597

 

 

 

$

178,495

 

 

 

Net premium written

 

18,156

 

 

 

10,096

 

 

 

92,654

 

 

 

120,906

 

 

 

Net premium earned

 

24,585

 

 

 

12,085

 

 

 

93,886

 

 

 

130,556

 

 

 

Net loss & settlement expenses

 

5,124

 

20.8

%

4,432

 

36.7

%

52,212

 

55.6

%

61,768

 

47.3

%

Net operating expenses

 

8,987

 

36.6

%

7,634

 

63.2

%

27,747

 

29.6

%

44,368

 

34.0

%

Underwriting income(loss)

 

$

10,474

 

57.4

%

$

19

 

99.9

%

$

13,927

 

85.2

%

$

24,420

 

81.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property

 

GAAP
Ratios

 

Surety

 

GAAP
Ratios

 

Casualty

 

GAAP
Ratios

 

Total

 

GAAP
Ratios

 

Twelve Months Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premium written

 

$

176,228

 

 

 

$

60,669

 

 

 

$

519,115

 

 

 

$

756,012

 

 

 

Net premium written

 

89,089

 

 

 

56,011

 

 

 

349,465

 

 

 

494,565

 

 

 

Net premium earned

 

80,528

 

 

 

51,886

 

 

 

358,893

 

 

 

491,307

 

 

 

Net loss & settlement expenses

 

55,344

 

68.7

%

14,327

 

27.6

%

181,499

 

50.6

%

251,170

 

51.1

%

Net operating expenses

 

33,526

 

41.6

%

32,358

 

62.4

%

105,370

 

29.4

%

171,254

 

34.9

%

Underwriting income(loss)

 

$

(8,342

)

110.3

%

$

5,201

 

90.0

%

$

72,024

 

80.0

%

$

68,883

 

86.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premium written

 

$

178,625

 

 

 

$

54,146

 

 

 

$

519,817

 

 

 

$

752,588

 

 

 

Net premium written

 

91,549

 

 

 

49,214

 

 

 

370,449

 

 

 

511,212

 

 

 

Net premium earned

 

98,043

 

 

 

47,688

 

 

 

365,617

 

 

 

511,348

 

 

 

Net loss & settlement expenses

 

41,735

 

42.6

%

18,355

 

38.5

%

246,041

 

67.3

%

306,131

 

59.9

%

Net operating expenses

 

35,908

 

36.6

%

29,402

 

61.7

%

100,016

 

27.4

%

165,326

 

32.3

%

Underwriting income(loss)

 

$

20,400

 

79.2

%

$

(69

)

100.2

%

$

19,560

 

94.7

%

$

39,891

 

92.2

%

 

7