DALLAS, Aug. 07, 2019 (GLOBE NEWSWIRE) -- Hallmark Financial Services, Inc. (“Hallmark Financial”) (NASDAQ: HALL) today announced financial results for the second quarter and six months ended June 30, 2019.
| (Unaudited) | Second Quarter | Year-to-Date | |||||||
| 2019 | 2018 | 2019 | 2018 | ||||||
| $ in millions: | |||||||||
| Net Income | $ | 13.0 | $ | 5.1 | $ | 28.1 | $ | 5.7 | |
| Operating Earnings (1) | $ | 7.6 | $ | 4.7 | $ | 13.2 | $ | 9.1 | |
| $ per diluted share: | |||||||||
| Net Income | $ | 0.71 | $ | 0.28 | $ | 1.54 | $ | 0.31 | |
| Operating Earnings (1) | $ | 0.42 | $ | 0.26 | $ | 0.73 | $ | 0.50 | |
| (1) See “Non-GAAP Financial Measures” below | |||||||||
Second Quarter 2019 Highlights (all comparisons to same prior year period):
- Gross premiums written increased 26% to $218.2 million
- Net premiums written increased 38% to $123.8 million
- Net combined ratio improved to 94.5% compared to 97.0%
- Net income of $13.0 million, or $0.71 per diluted share, compared to $5.1 million, or $0.28 per diluted share
- Operating earnings of $7.6 million, or $0.42 per diluted share, compared to $4.7 million, or $0.26 per diluted share (see “Non-GAAP Financial Measures” below)
- Net investment gains of $6.8 million, including $0.1 million in net realized gains and a $6.7 million increase in net unrealized gains, compared to net investment gains of $0.5 million
Year-to-Date June 2019 Highlights (all comparisons to same prior year period):
- Gross premiums written increased 24% to $405.6 million
- Net premiums written increased 33% to $241.2 million
- Net combined ratio improved to 95.4% compared to 97.1%
- Net income of $28.1 million, or $1.54 per diluted share, compared to $5.7 million, or $0.31 per diluted share
- Operating earnings of $13.2 million, or $0.73 per diluted share, compared to $9.1 million, or $0.50 per diluted share (see “Non-GAAP Financial Measures” below)
- Net investment gains of $18.8 million, including $4.2 million in net realized gains and a $14.6 million increase in net unrealized gains, compared to net investment losses of $4.3 million
- Annualized return on beginning stockholders’ equity of 22%
- Annualized operating return on beginning tangible equity of 12.6%, driven by strong underwriting results (see “Non-GAAP Financial Measures” below)
- Book value per share grew 12% over prior year and 13% year-to-date to $15.98
| Second Quarter | Year-to-Date | |||||||||||||
| 2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||
| ($ in thousands, unaudited) | ||||||||||||||
| Gross premiums written | 218,236 | 173,219 | 26 | % | 405,552 | 326,724 | 24 | % | ||||||
| Net premiums written | 123,843 | 89,846 | 38 | % | 241,246 | 181,279 | 33 | % | ||||||
| Net premiums earned | 106,499 | 90,978 | 17 | % | 205,529 | 182,925 | 12 | % | ||||||
| Investment income, net of expenses | 5,412 | 4,406 | 23 | % | 10,523 | 8,846 | 19 | % | ||||||
| Investment gains (losses), net | 6,817 | 533 | 1,179 | % | 18,754 | (4,302 | ) | 536 | % | |||||
| Net income | 13,029 | 5,090 | 156 | % | 28,054 | 5,737 | 389 | % | ||||||
| Operating earnings (1) | 7,644 | 4,669 | 64 | % | 13,238 | 9,136 | 45 | % | ||||||
| Net income per share - basic | $ | 0.72 | $ | 0.28 | 157 | % | $ | 1.55 | $ | 0.32 | 384 | % | ||
| Net income per share - diluted | $ | 0.71 | $ | 0.28 | 154 | % | $ | 1.54 | $ | 0.31 | 397 | % | ||
| Operating earnings per share - diluted (1) | $ | 0.42 | $ | 0.26 | 62 | % | $ | 0.73 | $ | 0.50 | 46 | % | ||
| Book value per share | $ | 15.98 | $ | 14.23 | 12 | % | ||||||||
| (1) See “Non-GAAP Financial Measures” below | ||||||||||||||
Management Commentary
Overview
Naveen Anand, President and Chief Executive Officer, stated, “The second quarter 2019 results reflect our continued positive momentum as we effectively execute our strategy of building a national specialty business. Operating earnings increased by 64% over the comparable prior year period driven by continued improvement in underwriting results and increased premiums in our specialty markets. For the second quarter, our net combined ratio improved to 94.5% from 97.0% last year. Annualized operating return on tangible equity improved to 12.6%. Rate increases across most of our portfolio were strong and a key contributor to our growth in gross premiums written, along with new business, driven by sharp increase in submissions.
Premiums / Segment Overview
Mr. Anand continued, “These rate increases materialized in our Specialty Commercial Segment, which grew second quarter gross premiums written by 27% over last year and achieved a second quarter net combined ratio of 91.8% versus 95.2% last year. For the quarter, we achieved written rate increases in the double digits, driven by commercial auto as well as most of our E&S lines. Submissions increased over 25% as compared to the first six months of 2018 in the Specialty Commercial Segment. E&S property, commercial auto, E&S casualty and professional liability product lines saw the largest increases in submissions reflecting the market dislocation in these lines. The environment in primary commercial auto remains challenging from a severity perspective and we continue to make strides in improving risk selection, culling our portfolio and increasing rates to exceed rising loss trends.
“Our Personal Segment produced a second quarter 91.5% net combined ratio compared to 105.1% last year. Our Standard Commercial Segment grew second quarter gross written premiums by $0.3 million compared to the prior year. This segment produced a second quarter net combined ratio of 94.2% which included 4.0% attributable to catastrophe losses,” concluded Mr. Anand.
Executive Chairman’s Remarks
Mark E. Schwarz, Executive Chairman of Hallmark Financial, stated, “Book value per share increased 13% to $15.98 during the first six months of 2019, a high-water mark for the Company, driven largely by an increase in the market valuation of our investment portfolio, particularly equities, as well as strong operating earnings. Our net investment income was $10.5 million for the first six months of 2019, representing a 19% increase compared to the prior year period. Our total investments and cash increased 5% during the first six months of 2019 to $700.9 million or $38.67 per share.”
Second Quarter and Year-to-Date 2019 Financial Review
Gross Premiums Written
During the three and six months ended June 30, 2019, Hallmark Financial’s gross premiums written were $218.2 million and $405.6 million, respectively, representing an increase of 26% and 24%, respectively, from the $173.2 million and $326.7 million in gross premiums written for the same periods in 2018.
Net Premiums Written
During the three and six months ended June 30, 2019, Hallmark Financial’s net premiums written were $123.8 million and $241.2 million, respectively, representing an increase of 38% and 33%, respectively, from the $89.8 million and $181.3 million in net premiums written for the same periods of 2018. The increase in net premiums written for the three and six months ended June 30, 2019 was primarily due to premium growth in both the Specialty Commercial and Personal Segments, as well as increased net retention of business in the Personal Segment.
Net Premiums Earned
Hallmark Financial’s net premiums earned were $106.5 million and $205.5 million for the three and six months ended June 30, 2019, respectively, as compared to $91.0 million and $182.9 million for the same periods in 2018.
Pre-Tax Income
Hallmark Financial had pre-tax income of $16.5 million and $35.4 million for the three and six months ended June 30, 2019, respectively, as compared to $6.4 million and $7.2 million reported during the same periods in 2018.
The improvement in income before tax for the three and six months ended June 30, 2019 was largely due to increased net unrealized gains on our equity and other investments of $6.7 million and $14.6 million, respectively, as compared to an increase in net unrealized gains of $0.2 million and a decrease in net unrealized gains of $4.7 million reported for the same periods in 2018. Also contributing to the improvement in income before tax for the quarter and year-to-date was increased net premiums earned, higher finance charges and higher net investment income. Year-to-date net realized gains of $4.2 million as compared to $0.4 million for the comparable prior year period also contributed to the improvement in year-to-date income before tax.
Loss and Loss Adjustment Expenses (“LAE”) and Net Combined Ratio
These increases in revenue were partially offset by increased losses and LAE for the three and six months ended June 30, 2019 of $9.6 million and $16.0 million, respectively, as compared to the prior year periods due primarily to increased net premiums earned.
Hallmark Financial reported $1.5 million and $1.4 million, respectively, of unfavorable net prior year loss reserve development during the three and six months ended June 30, 2019 as compared to $5.0 million and $4.5 million, respectively, of unfavorable net prior year loss reserve development during the same periods of 2018.
Hallmark Financial had a net loss ratio of 68.8% and 69.7% for the three and six months ended June 30, 2019, respectively, as compared to 70.0% and 69.6% reported during the same periods in 2018. Catastrophe losses contributed 1.9% and 2.0% to the net loss ratios for the three and six months ended June 30, 2019, as compared to 2.2% and 1.6% for the same periods of the prior year.
The expense ratio was 25.7% for both the three and six months ended June 30, 2019, respectively, as compared to 27.0% and 27.5% reported during the same periods in 2018. The Company reported a net combined ratio of 94.5% and 95.4% for the three and six months ended June 30, 2019, compared to 97.0% and 97.1% during the same periods in 2018.
Net Income
Hallmark Financial reported net income of $13.0 million and $28.1 million for the three and six months ended June 30, 2019 as compared to $5.1 million and $5.7 million for the three and six months ended June 30, 2018.
On a diluted basis per share, the Company reported net income of $0.71 per share and $1.54 per share for the three and six months ended June 30, 2019 as compared to $0.28 per share and $0.31 per share for the three and six months ended June 30, 2018.
Non-GAAP Financial Measures
The Company’s financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”). However, the Company also presents and discusses certain non-GAAP financial measures that it believes are useful to investors as measures of operating performance. Management may also use such non-GAAP financial measures in evaluating the effectiveness of business strategies and for planning and budgeting purposes. However, these non-GAAP financial measures should not be viewed as an alternative or substitute for the results reflected in the Company’s GAAP financial statements. In addition, the Company’s definitions of these items may not be comparable to the definitions used by other companies.
Operating earnings and operating earnings per share are calculated by excluding net investment gains and losses from GAAP net income. Management believes that operating earnings and operating earnings per share provide useful information to investors about the performance of and underlying trends in the Company’s core insurance operations. Net income and net income per share are the GAAP measures that are most directly comparable to operating earnings and operating earnings per share. A reconciliation of operating earnings and operating earnings per share to the most comparable GAAP financial measures is presented below.
| Weighted | |||||||||||||
| Income | Less Tax | Net | Average | Diluted | |||||||||
| ($ in thousands) | Before Tax | Effect | After Tax | Shares Diluted | Per Share | ||||||||
| Second Quarter 2019 | |||||||||||||
| Reported GAAP measures | $ | 16,484 | $ | 3,455 | $ | 13,029 | 18,251 | $ | 0.71 | ||||
| Excluded investment (gains)/losses | $ | (6,817 | ) | $ | (1,432 | ) | $ | (5,385 | ) | 18,251 | $ | (0.30 | ) |
| Operating earnings | $ | 9,667 | $ | 2,023 | $ | 7,644 | 18,251 | $ | 0.42 | ||||
| Second Quarter 2018 | |||||||||||||
| Reported GAAP measures | $ | 6,372 | $ | 1,282 | $ | 5,090 | 18,174 | $ | 0.28 | ||||
| Excluded investment (gains)/losses | $ | (533 | ) | $ | (112 | ) | $ | (421 | ) | 18,174 | $ | (0.02 | ) |
| Operating earnings | $ | 5,839 | $ | 1,170 | $ | 4,669 | 18,174 | $ | 0.26 | ||||
| Year-to-Date 2019 | |||||||||||||
| Reported GAAP measures | $ | 35,402 | $ | 7,348 | $ | 28,054 | 18,250 | $ | 1.54 | ||||
| Excluded investment (gains)/losses | $ | (18,754 | ) | $ | (3,938 | ) | $ | (14,816 | ) | 18,250 | $ | (0.81 | ) |
| Operating earnings | $ | 16,648 | $ | 3,410 | $ | 13,238 | 18,250 | $ | 0.73 | ||||
| Year-to-Date 2018 | |||||||||||||
| Reported GAAP measures | $ | 7,181 | $ | 1,444 | $ | 5,737 | 18,230 | $ | 0.31 | ||||
| Excluded investment (gains)/losses | $ | 4,302 | $ | 903 | $ | 3,399 | 18,230 | $ | 0.19 | ||||
| Operating earnings | $ | 11,483 | $ | 2,347 | $ | 9,136 | 18,230 | $ | 0.50 | ||||
Operating return on beginning tangible equity is calculated as operating earnings divided by GAAP equity at the beginning of the period excluding goodwill. Management believes that operating return on beginning tangible equity provides useful information to investors about the performance of the Company’s core insurance operations relative to its core shareholder equity exclusive of non-depreciable goodwill from prior acquisitions. Return on beginning equity is the GAAP measure that is most directly comparable to operating return on beginning tangible equity. A reconciliation of operating return on beginning tangible equity to return on beginning equity is presented below.
| Year-to-date 2019 net income | 28,054 | a | |
| Excluded investment gains, net of tax | (14,816 | ) | |
| Year-to-date 2019 operating earnings | 13,238 | b | |
| Annualized year-to-date 2019 net income | 56,108 | (a x 2) | |
| Annualized year-to-date 2019 operating earnings | 26,476 | (b x 2) | |
| Beginning GAAP equity | 255,532 | c | |
| Reverse goodwill | (44,695 | ) | |
| Beginning tangible equity | 210,837 | d | |
| Annualized return on beginning GAAP equity | 22.0 | % | (a x 2) / c |
| Annualized operating return on beginning tangible equity | 12.6 | % | (b x 2) / d |
About Hallmark Financial
Hallmark Financial is a specialty property and casualty insurance holding company with a diversified portfolio of insurance products written on a national platform. With six insurance subsidiaries and offices in Dallas/Fort Worth, San Antonio, Chicago, Jersey City and Atlanta, Hallmark Financial markets, underwrites and services over $650 million annually in commercial and personal insurance premiums in select markets. Hallmark Financial is headquartered in Dallas, Texas and its common stock is listed on NASDAQ under the symbol "HALL."
Forward-looking statements in this release are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that actual results may differ materially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, continued acceptance of the Company’s products and services in the marketplace, competitive factors, interest rate trends, general economic conditions, the availability of financing, underwriting loss experience and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission.
For further information, please contact:
Mr. Naveen Anand, President and Chief Executive Officer at 817.348.1600
www.hallmarkgrp.com
| Hallmark Financial Services, Inc. and Subsidiaries | ||||||
| Consolidated Balance Sheets | ||||||
| ($ in thousands, except par value) | Jun. 30 | Dec. 31 | ||||
| ASSETS | 2019 | 2018 | ||||
| Investments: | (unaudited) | |||||
| Debt securities, available-for-sale, at fair value (amortized cost: $530,516 in 2019 and $550,268 in 2018) | $ | 533,148 | $ | 545,870 | ||
| Equity securities (cost: $68,709 in 2019 and $68,709 in 2018) | 94,012 | 80,896 | ||||
| Other investment (cost: $3,763 in 2019 and $3,763 in 2018) | 2,585 | 1,148 | ||||
| Total investments | 629,745 | 627,914 | ||||
| Cash and cash equivalents | 67,670 | 35,594 | ||||
| Restricted cash | 3,486 | 4,877 | ||||
| Ceded unearned premiums | 150,883 | 133,031 | ||||
| Premiums receivable | 144,674 | 119,778 | ||||
| Accounts receivable | 1,332 | 1,619 | ||||
| Receivable for securities | 2,581 | 3,369 | ||||
| Reinsurance recoverable | 300,155 | 252,029 | ||||
| Deferred policy acquisition costs | 20,308 | 14,291 | ||||
| Goodwill | 44,695 | 44,695 | ||||
| Intangible assets, net | 6,323 | 7,555 | ||||
| Deferred federal income taxes, net | - | 4,983 | ||||
| Prepaid expenses | 3,282 | 2,588 | ||||
| Other assets | 30,634 | 12,571 | ||||
| Total Assets | $ | 1,405,768 | $ | 1,264,894 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Liabilities: | ||||||
| Revolving credit facility payable | $ | 30,000 | $ | 30,000 | ||
| Subordinated debt securities (less unamortized debt issuance cost of $872 in 2019 and $898 in 2018) | 55,830 | 55,804 | ||||
| Reserves for unpaid losses and loss adjustment expenses | 551,543 | 527,247 | ||||
| Unearned premiums | 351,630 | 298,061 | ||||
| Reinsurance balances payable | 73,977 | 67,328 | ||||
| Current federal income tax payable | 870 | 4 | ||||
| Deferred federal income taxes, net | 143 | - | ||||
| Pension liability | 1,946 | 2,018 | ||||
| Payable for securities | 3,167 | 698 | ||||
| Accounts payable and other accrued expenses | 47,126 | 28,202 | ||||
| Total Liabilities | 1,116,232 | 1,009,362 | ||||
| Commitments and contingencies | ||||||
| Stockholders’ equity: | ||||||
| Common stock, $.18 par value, authorized 33,333,333 shares; issued 20,872,831 shares in 2019 and 2018 | 3,757 | 3,757 | ||||
| Additional paid-in capital | 122,778 | 123,168 | ||||
| Retained earnings | 189,249 | 161,195 | ||||
| Accumulated other comprehensive loss | (1,047 | ) | (6,660 | ) | ||
| Treasury stock (2,749,738 shares in 2019 and 2,846,131 shares in 2018), at cost | (25,201 | ) | (25,928 | ) | ||
| Total Stockholders’ Equity | 289,536 | 255,532 | ||||
| Total Liabilities & Stockholders' Equity | $ | 1,405,768 | $ | 1,264,894 | ||
| Hallmark Financial Services, Inc. and Subsidiaries | |||||||||||||
| Consolidated Statements of Operations | Three Months Ended | Six Months Ended | |||||||||||
| ($ in thousands, except per share amounts) | June 30, | June 30, | |||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Gross premiums written | $ | 218,236 | $ | 173,219 | $ | 405,552 | $ | 326,724 | |||||
| Ceded premiums written | (94,393 | ) | (83,373 | ) | (164,306 | ) | (145,445 | ) | |||||
| Net premiums written | 123,843 | 89,846 | 241,246 | 181,279 | |||||||||
| Change in unearned premiums | (17,344 | ) | 1,132 | (35,717 | ) | 1,646 | |||||||
| Net premiums earned | 106,499 | 90,978 | 205,529 | 182,925 | |||||||||
| Investment income, net of expenses | 5,412 | 4,406 | 10,523 | 8,846 | |||||||||
| Investment gains (losses), net | 6,817 | 533 | 18,754 | (4,302 | ) | ||||||||
| Finance charges | 1,797 | 1,161 | 3,531 | 2,201 | |||||||||
| Commission and fees | 364 | 1,032 | 657 | 1,735 | |||||||||
| Other income | 14 | 15 | 30 | 61 | |||||||||
| Total revenues | 120,903 | 98,125 | 239,024 | 191,466 | |||||||||
| Losses and loss adjustment expenses | 73,226 | 63,648 | 143,313 | 127,323 | |||||||||
| Operating expenses | 29,336 | 26,360 | 56,582 | 53,573 | |||||||||
| Interest expense | 1,240 | 1,128 | 2,493 | 2,155 | |||||||||
| Amortization of intangible assets | 617 | 617 | 1,234 | 1,234 | |||||||||
| Total expenses | 104,419 | 91,753 | 203,622 | 184,285 | |||||||||
| Income before tax | 16,484 | 6,372 | 35,402 | 7,181 | |||||||||
| Income tax expense | 3,455 | 1,282 | 7,348 | 1,444 | |||||||||
| Net income | $ | 13,029 | $ | 5,090 | $ | 28,054 | $ | 5,737 | |||||
| Net income per share: | |||||||||||||
| Basic | $ | 0.72 | $ | 0.28 | $ | 1.55 | $ | 0.32 | |||||
| Diluted | $ | 0.71 | $ | 0.28 | $ | 1.54 | $ | 0.31 | |||||
| Hallmark Financial Services, Inc. and Subsidiaries | |||||||||||||||||||||||||||||
| Consolidated Segment Data | |||||||||||||||||||||||||||||
| Three Months Ended Jun. 30 | |||||||||||||||||||||||||||||
| Specialty Commercial Segment | Standard Commercial Segment | Personal Segment | Corporate | Consolidated | |||||||||||||||||||||||||
| ($ in thousands, unaudited) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
| Gross premiums written | $ | 172,940 | $ | 136,079 | $ | 21,835 | $ | 21,574 | $ | 23,461 | $ | 15,566 | $ | - | $ | - | $ | 218,236 | $ | 173,219 | |||||||||
| Ceded premiums written | (83,370 | ) | (72,083 | ) | (7,170 | ) | (2,645 | ) | (3,853 | ) | (8,645 | ) | - | - | (94,393 | ) | (83,373 | ) | |||||||||||
| Net premiums written | 89,570 | 63,996 | 14,665 | 18,929 | 19,608 | 6,921 | - | - | 123,843 | 89,846 | |||||||||||||||||||
| Change in unearned premiums | (20,216 | ) | 2,333 | 1,611 | (824 | ) | 1,261 | (377 | ) | - | - | (17,344 | ) | 1,132 | |||||||||||||||
| Net premiums earned | 69,354 | 66,329 | 16,276 | 18,105 | 20,869 | 6,544 | - | - | 106,499 | 90,978 | |||||||||||||||||||
| Total revenues | 73,592 | 72,081 | 17,310 | 19,247 | 23,116 | 7,916 | 6,885 | (1,119 | ) | 120,903 | 98,125 | ||||||||||||||||||
| Losses and loss adjustment expenses | 48,374 | 48,352 | 10,613 | 10,621 | 14,239 | 4,675 | - | - | 73,226 | 63,648 | |||||||||||||||||||
| Pre-tax income (loss) | 10,427 | 8,770 | 2,057 | 2,656 | 2,441 | (1 | ) | 1,559 | (5,053 | ) | 16,484 | 6,372 | |||||||||||||||||
| Net loss ratio (1) | 69.7 | % | 72.9 | % | 65.2 | % | 58.7 | % | 68.2 | % | 71.4 | % | 68.8 | % | 70.0 | % | |||||||||||||
| Net expense ratio (1) | 22.1 | % | 22.3 | % | 29.0 | % | 33.2 | % | 23.3 | % | 33.7 | % | 25.7 | % | 27.0 | % | |||||||||||||
| Net combined ratio (1) | 91.8 | % | 95.2 | % | 94.2 | % | 91.9 | % | 91.5 | % | 105.1 | % | 94.5 | % | 97.0 | % | |||||||||||||
| Favorable (Unfavorable) Prior Year Development | (3,277 | ) | (5,849 | ) | 1,778 | 507 | 29 | 359 | - | - | (1,470 | ) | (4,983 | ) | |||||||||||||||
| (1) | The net loss ratio is calculated as incurred losses and loss adjustment expenses divided by net premiums earned, each determined in accordance with GAAP. The net expense ratio is calculated as total underwriting expenses offset by agency fee income divided by net premiums earned, each determined in accordance with GAAP. The net combined ratio is calculated as the sum of the net loss ratio and the net expense ratio. |
| Hallmark Financial Services, Inc. and Subsidiaries | |||||||||||||||||||||||||||||
| Consolidated Segment Data | |||||||||||||||||||||||||||||
| Six Months Ended Jun. 30 | |||||||||||||||||||||||||||||
| Specialty Commercial Segment | Standard Commercial Segment | Personal Segment | Corporate | Consolidated | |||||||||||||||||||||||||
| ($ in thousands, unaudited) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
| Gross premiums written | $ | 307,339 | $ | 250,892 | $ | 47,363 | $ | 44,371 | $ | 50,850 | $ | 31,461 | $ | - | $ | - | $ | 405,552 | $ | 326,724 | |||||||||
| Ceded premiums written | (140,731 | ) | (122,741 | ) | (15,273 | ) | (5,200 | ) | (8,302 | ) | (17,504 | ) | - | - | (164,306 | ) | (145,445 | ) | |||||||||||
| Net premiums written | 166,608 | 128,151 | 32,090 | 39,171 | 42,548 | 13,957 | - | - | 241,246 | 181,279 | |||||||||||||||||||
| Change in unearned premiums | (33,066 | ) | 5,868 | 1,560 | (3,199 | ) | (4,211 | ) | (1,023 | ) | - | - | (35,717 | ) | 1,646 | ||||||||||||||
| Net premiums earned | 133,542 | 134,019 | 33,650 | 35,972 | 38,337 | 12,934 | - | - | 205,529 | 182,925 | |||||||||||||||||||
| Total revenues | 141,559 | 145,205 | 35,683 | 38,122 | 42,599 | 15,536 | 19,183 | (7,397 | ) | 239,024 | 191,466 | ||||||||||||||||||
| Losses and loss adjustment expenses | 94,323 | 95,895 | 22,264 | 22,301 | 26,726 | 9,127 | - | - | 143,313 | 127,323 | |||||||||||||||||||
| Pre-tax income (loss) | 18,395 | 18,528 | 3,564 | 3,975 | 4,014 | (23 | ) | 9,429 | (15,299 | ) | 35,402 | 7,181 | |||||||||||||||||
| Net loss ratio (1) | 70.6 | % | 71.6 | % | 66.2 | % | 62.0 | % | 69.7 | % | 70.6 | % | 69.7 | % | 69.6 | % | |||||||||||||
| Net expense ratio (1) | 22.2 | % | 23.0 | % | 29.7 | % | 33.2 | % | 22.8 | % | 34.6 | % | 25.7 | % | 27.5 | % | |||||||||||||
| Net combined ratio (1) | 92.8 | % | 94.6 | % | 95.9 | % | 95.2 | % | 92.5 | % | 105.2 | % | 95.4 | % | 97.1 | % | |||||||||||||
| Net Favorable (Unfavorable) Prior Year Development | (5,203 | ) | (6,861 | ) | 3,583 | 1,560 | 216 | 848 | - | - | (1,404 | ) | (4,453 | ) | |||||||||||||||
| (1) | The net loss ratio is calculated as incurred losses and loss adjustment expenses divided by net premiums earned, each determined in accordance with GAAP. The net expense ratio is calculated as total underwriting expenses offset by agency fee income divided by net premiums earned, each determined in accordance with GAAP. The net combined ratio is calculated as the sum of the net loss ratio and the net expense ratio. |