A number of insurers have released their financial results for Q2 2012. The following is a compilation of their announcements:
21st Century reported Q2 2012 net income of $1.4 million ($0.18 per share) compared with a net loss of $0.8 million ($0.10 per share) in the same quarter last year.
Total revenues increased 18.7 percent to $16.8 million, compared with $14.2 million for the same quarter last year.
Gross written premiums increased by 18.1 percent to $33.1 million compared with $28.0 million for the same quarter last year. Net written premium was $21,344,258, compared with $14,492,347 for the same quarter last year.
Premium breakout by line of business:
• Homeowners' increased to $28,283 million from $22,568 million.
• Commercial General Liability decreased to $2,533 million from $2,819 million.
• Federal Flood increased to $1,452 million from $1,274 million.
• Automobile decreased to $803 million from $1,341 million.
"Our continued focus on writing sustainable quality business and controlling expenses has led to another profitable quarter,” said Michael Braun, president and CEO. “The growth in our policy count, gross written premium, and net earned premiums are notable after tightly controlling our book of business over the prior two years. While we have taken a prudent path towards growth, we feel these decisions have set the course for future success."
Argo Group reported Q2 2012 net income of $24.0 million ($0.92 per diluted share) compared with $21.6 million ($0.79 per diluted share) for the same period last year. Net operating income was $14.3 million ($0.55 per diluted share) for the same quarter last year. Results were affected by Q2 2012 pre-tax catastrophe losses, net of reinsurance and estimated reinstatement premiums, of $3.9 million. By comparison, the second quarter of 2011 produced net income of $21.6 million or $0.78 per diluted share.
"It was another solid quarter in terms of profits and growth,” said Mark Watson III, CEO. “Each of our four business segments generated top line growth in the quarter and three of our four businesses reported an underwriting profit. It’s good to be heading in the right direction.”
Excess and Surplus Lines: Gross written premiums were $143.9 million, resulting in pre-tax operating income of $22.3 million, compared with $131.8 million and pre-tax operating income of $7.5 million in the same quarter last year.
Commercial Specialty: Gross written premiums were $92.7 million, resulting in a pre-tax operating loss of $8.8 million, compared with gross written premiums of $88.2 million and a pre-tax operating loss of $11.8 million in the same quarter last year.
International Specialty: Gross written premiums were $84.3 million, resulting in pre-tax operating income of $9.6 million, compared with gross written premiums of $62.9 million and pre-tax operating income of $2.0 million in the same quarter last year.
Syndicate 1200: Gross written premiums were $153.2 million, resulting in pre-tax operating income of $4.5 million, compared to gross written premiums of $123.8 million and pre-tax operating income of $2.9 million in the same quarter last year.
Total gross written premiums were $474.2 million, compared with $406.7 million in the same quarter last year. Net written premium for the quarter was $361.5 million, compared with $283.3 million for the same quarter last year. Net investment income decreased to $30.0 million from $32.9 million. During the quarter, the company repurchased 602,046 shares of its outstanding common stock, at an average share price of $28.76, for a total of $17.4 million. The combined ratio improved to 102.5 percent from 109.3 percent the same quarter of last year.
Infinity Property and Casualty
Infinity Property and Casualty reported Q2 2012 net earnings of $7.0 million, compared with $6.8 million for the same quarter last year. Revenues were $306.0 million, compared with $264.2 million for the same period last year, an increase of 15.8 percent. Gross written premium increased 11.9 percent to $290.4 million, from $259.4 million for the same period last year. Operating earnings per diluted share increased 21.1 percent to $0.46, from $0.38 for the same period last year. Infinity reaffirmed its operating earnings guidance of $2.00 to $2.50, assuming gross written premium growth between 10.0 percent and 12.5 percent compared with last year and an accident-year combined ratio of between 97.5 percent and 98.5 percent, excluding development on prior-accident-year-loss and loss-adjustment-expense reserves.
EMC reported a Q2 2012 net loss of $2.576 million ($0.20 per share), including realized investment gains and losses, compared with a net loss of $12.902 million ($1.00 per share) for the same quarter last year. For the quarter, the company reported an operating loss per share of $0.14; net loss per share of $0.20; net realized investment losses per share of $0.06; catastrophe losses per share of $1.25; large losses per share of $0.31; and a GAAP combined ratio of 113.9 percent.
“We have expended a great deal of time and resources into implementing much needed rate level increases in the commercial lines of business during the first six months of the year, and those efforts have been successful. Unfortunately, the positive impact those rate increases had on second quarter operating results was overshadowed by a high level of catastrophe losses and a decline in the amount of favorable development experienced on prior years’ reserves,” said Bruce Kelley, president and CEO. “We continue to believe that the persistent level of above-average catastrophe losses is an aberration attributed to an active weather cycle, and does not reflect a permanent change in weather patterns. Future operating results should benefit from the rate level increases we are implementing now.”
ManuLife reported a Q2 net loss of CAD 300 million ($0.18 per share), compared with a net income of $1.206 billion in the same quarter last year, and attributed the loss to the “challenging equity markets and interest rate environment, ” which were responsible for CAD 727 million in losses.
"While volatile equity markets and lower interest rates took their toll, we made substantive progress against our strategic priorities, delivered excellent operating results and prudently managed our capital and financial position,” said Donald Guloien, president and CEO. “We improved our product mix, increased pricing on a number of products, delivered robust insurance sales growth, achieved another all-time record in funds under management, generated strong new business embedded value and strengthened underlying earnings. Our variable annuity hedging program was highly effective during the quarter and we significantly reduced our earnings sensitivity to interest rates."
Tower Group reported a Q2 2012 net operating loss of $15.1 million ($0.39 per diluted share) compared with net income of $24.1 million ($0.58 per diluted share) for the same period last year. The loss includes an after-tax charge of $42.3 million ($1.08 per share) for prior-year reserve strengthening, compared with $0.3 million ($0.01 per share) of favorable reserve development for the same period last year. Gross written premiums increased 14.9 percent to $537.6 million. Net investment income was flat at $31.8 million; the net combined ratio rose to 110.8 percent from 94.9 percent.
“We believe we have taken decisive actions to address our reserve position from prior accident years, so that our future results should better reflect the underwriting profitability of our ongoing business,” said Michael Lee, president and CEO. “Excluding this reserve development, our operating results continue to be strong, and in the second quarter we experienced 15 percent top line growth and a 95.3 percent combined ratio. During the quarter, we continued to successfully implement our organic growth initiative to expand into new products, and improve existing and create new business units.”
XL Group reported a Q2 2012 net income from property/casualty operations of $221 million ($0.71 per share), a 2.2 percent decline compared with $226 million ($0.69 per share) for the same quarter last year. Gross premium written was $1.763 billion compared with $1.762 billion for the same quarter last year. Net premiums earned were $1.401 billion, compared with $1.306 billion for the same quarter last year. The combined ratio improved to 90.8 percent from 94.9 percent in the same quarter last year. Total investment income decreased to $263 million from $297 million for the same quarter last year.
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