Exhibit 99.1
MEADOWBROOK INSURANCE GROUP, INC.
(NYSE — MIG)
| | | |
CONTACT: | | Karen M. Spaun, SVP & Chief Financial Officer, (248) 204-8178 |
| | | Holly Moltane, Director of External Financial Reporting, (248) 204-8590 |
MEADOWBROOK INSURANCE GROUP, INC.
REPORTS FIRST QUARTER NET INCOME OF $5.6 MILLION
•Net income up over 50% year over year
•Earnings per diluted share of $0.19
•GAAP combined ratio 96.2%
SOUTHFIELD, MICHIGAN
May 2, 2006
First Quarter Overview:
Meadowbrook Insurance Group, Inc. (NYSE: MIG) reported $5.6 million in net income, or $0.19 per diluted share, for the quarter ended March 31, 2006. This is an increase of 50.3%, from net income of $3.7 million, or $0.13 per diluted share in 2005.
Quarterly highlights included:
| | • | | Quarterly earnings per diluted share increased by over 50% from last year, to $0.19. |
| | • | | Annualized return on beginning equity was 12.7%. |
| | • | | Book value per share increased to $6.28. |
| | • | | GAAP combined ratio improved to 96.2%. |
Commenting on the results, Meadowbrook President and Chief Executive Officer, Robert S. Cubbin stated: “Our strong quarterly results reflect our continued commitment to disciplined underwriting. We remain intent upon increasing return on equity, improving or maintaining underwriting profitability within each of our specialty programs and growing our fee-for-service business. With our proven ability to leverage fixed costs and the impact of overall process improvements, we remain optimistic that our year over year results should continue to improve.”
First Quarter Results:
As noted above, net income for the quarter was $5.6 million, or $0.19 per diluted share, compared to net income of $3.7 million, or $0.13 per diluted share in 2005.
Revenues:
Revenues for the quarter ended March 31, 2006, increased $4.8 million, to $79.6 million, compared to $74.8 million in 2005.
Net earned premiums increased $2.3 million, to $63.1 million for the quarter from $60.8 million in 2005. This increase is primarily the result of selective growth, controls over price adequacy, as well as the favorable impact from an increase in the net retention levels on certain reinsurance treaties. Offsetting these increases was an overall decrease in audit premiums in comparison to 2005.
Net commissions and fees grew in the quarter by 11.8%, to $11.3 million. Gross commissions and fees, before consolidation, were $23.6 million for the quarter ended March 31, 2006, compared to $22.5 million in 2005. These increases are the result of an increase in fee-for-service revenue related to a Florida-based program implemented in the second quarter of 2005, commission revenue from the Florida-based retail agency acquisition of November 2005, and growth in existing programs.
Net investment income increased to $5.2 million for the quarter ended March 31, 2006, from $4.1 million in 2005. Average invested assets increased $56.8 million to $464.0 million. The increase in average invested assets reflects cash flows from improved underwriting activities and an incremental and anticipated increase in the duration of our reserves. The increase in average invested assets also reflects $19.4 million in net proceeds received in conjunction with the debentures issued in the third quarter of 2005. The average investment yield increased to 4.52% for March 31, 2006, compared to 4.02% in 2005. The current pre-tax book yield was 4.24% and current after-tax book yield was 3.15%. The duration of the investment portfolio was 3.8 years.
Expenses:
Incurred losses were $37.0 million for the quarter ended March 31, 2006, down from $37.1 million in 2005. The loss and loss adjustment expense ratio for the quarter dropped to 63.7%, from 65.6% in 2005.
Policy acquisition and other underwriting expenses increased to $11.4 million for the quarter ended March 31, 2006, from $10.8 million in 2005. The GAAP expense ratio improved 1.2 percentage points to 32.5% this quarter, from 33.7% in 2005. This improvement is primarily the result of a reduction in insurance related assessments and the effect of leveraging fixed costs, offset by a slight increase in profit sharing commissions.
The GAAP combined ratio improved 3.1 percentage points to 96.2% for the quarter ended March 31, 2006, from 99.3% in 2005.
Salaries and employee benefits for the quarter ended March 31, 2006, increased $763,000, or 6.1%, to $13.4 million, from $12.6 million in 2005. This increase primarily reflects merit pay increases for associates and an increase in variable compensation. Staffing levels remained relatively consistent in comparison to 2005.
Other administrative expenses increased slightly in the quarter to $8.0 million, from $7.8 million in 2005.
Interest expense increased $615,000, to $1.4 million for the quarter ended March 31, 2006, from $773,000 in 2005. This increase is primarily the result of the junior subordinated debentures issued in the third quarter of 2005, as well as an overall increase in the average interest rates on our debentures. The average interest rate, excluding the debentures, was approximately 6.2% for 2006, compared to 4.2% for 2005.
Other Matters:
Shareholders’ Equity:
Shareholders’ equity increased to $180.9 million, or $6.28 per common share, at March 31, 2006, compared to $177.4 million, or $6.19 per common share, at December 31, 2005. This $0.09 per share increase in book value reflects quarter-to-date earnings, offset by the change in unrealized gains/losses in our investment portfolio as a result of rising interest rates. The investment portfolio is invested 99.7% in investment grade fixed income securities. We continue to invest in securities with minimum credit risk and have the ability and intent to hold those securities to maturity.
At March 31, 2006, our debt-to-equity ratio was 34.8%, compared to 34.4% at December 31, 2005. Excluding the interest only, 30-year debentures, the debt-to-equity ratio would be 3.9% at March 31, 2006, compared to 2.8% at December 31, 2005.
Statutory Surplus:
Statutory surplus increased to $149.0 million at March 31, 2006, from $141.1 million at December 31, 2005. The increase in statutory surplus was primarily due to statutory net income and a decrease in our provision for reinsurance.
Income Taxes:
The effective federal tax rate for the quarter ended March 31, 2006 was 31.2%, compared to 31.3% in 2005.
About Meadowbrook Insurance Group
A leader in the alternative risk market, Meadowbrook is a program-based risk management company, specializing in alternative risk management solutions for agents, brokers, and small to medium-sized insureds. Meadowbrook Insurance Group, Inc. common shares are listed on the New York Stock Exchange under the symbol “MIG”. For further information, please visit Meadowbrook’s corporate web site at www.meadowbrook.com.
Certain statements made by Meadowbrook Insurance Group, Inc. in this release may constitute forward-looking statements including, but not limited to, those statements that include the words “believes”, “expects”, “anticipates”, “estimates”, or similar expressions. Please refer to the Company’s most recent 10-K, 10-Q, and other Securities and Exchange Commission filings for more information on risk factors. Actual results could differ materially. These forward-looking statements involve risks and uncertainties including, but not limited to the following: the frequency and severity of claims; uncertainties inherent in reserve estimates; catastrophic events; a change in the demand for, pricing of, availability or collectibility of reinsurance; increased rate pressure on premiums; obtainment of certain rate increases in current market conditions; investment rate of return; changes in and adherence to insurance regulation; actions taken by regulators, rating agencies or lenders; obtainment of certain processing efficiencies; changing rates of inflation; and general economic conditions. Meadowbrook is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
MEADOWBROOK INSURANCE GROUP, INC.
FINANCIAL INFORMATION
SUPPLEMENT TO THE EARNINGS RELEASE
UNAUDITED BALANCE SHEET INFORMATION
| | | | | | | | | |
| | | MARCH 31, | | | DECEMBER 31, | |
| (In Thousands, Except Per Share Data) | | 2006 | | | 2005 | |
BALANCE SHEET DATA | | | | | | | | |
| | | | | | | | | |
ASSETS | | | | | | | | |
| Cash and invested assets | | $ | 467,745 | | | $ | 460,233 | |
| Premium & agents balances | | | 102,652 | | | | 84,807 | |
| Reinsurance recoverable | | | 196,372 | | | | 202,581 | |
| Deferred policy acquisition costs | | | 27,249 | | | | 26,371 | |
| Prepaid reinsurance premiums | | | 25,649 | | | | 24,588 | |
| Goodwill | | | 30,802 | | | | 30,802 | |
| Other assets | | | 75,049 | | | | 71,962 | |
| | | | | | | |
| | | | | | | | | |
Total Assets | | $ | 925,518 | | | $ | 901,344 | |
| | | | | | | |
| | | | | | | | | |
LIABILITIES | | | | | | | | |
| Loss and loss adjustment expense reserves | | $ | 470,902 | | | $ | 458,677 | |
| Unearned premium reserves | | | 148,308 | | | | 140,990 | |
| Debt | | | 8,312 | | | | 7,000 | |
| Debentures | | | 55,930 | | | | 55,930 | |
| Other liabilities | | | 61,119 | | | | 61,382 | |
| | | | | | | |
Total Liabilities | | | 744,571 | | | | 723,979 | |
| | | | | | | | | |
STOCKHOLDERS’ EQUITY | | | | | | | | |
| Common stockholders’ equity | | | 180,947 | | | | 177,365 | |
| | | | | | | |
| | | | | | | | | |
Total Liabilities & Stockholders’ Equity | | $ | 925,518 | | | $ | 901,344 | |
| | | | | | | |
| | | | | | | | | |
Book value per common share | | $ | 6.28 | | | $ | 6.19 | |
| | | | | | | | | |
Book value per common share excluding unrealized gain/loss on available for sale securities, net of deferred taxes | | $ | 6.41 | | | $ | 6.23 | |
MEADOWBROOK INSURANCE GROUP, INC.
FINANCIAL INFORMATION
SUPPLEMENT TO THE EARNINGS RELEASE
UNAUDITED INCOME STATEMENT INFORMATION
| | | | | | | | | |
| (In Thousands, Except | | FOR THE QUARTER | |
| Share & Per Share Data) | | ENDED MARCH 31, | |
| SUMMARY DATA | | 2006 | | | 2005 | |
| Gross written premiums | | $ | 89,010 | | | $ | 90,992 | |
| Net written premiums | | | 69,381 | | | | 68,990 | |
REVENUES | | | | | | | | |
| Net earned premiums | | $ | 63,124 | | | $ | 60,787 | |
| Commissions and fees (net) | | | 11,289 | | | | 10,099 | |
| Net investment income | | | 5,239 | | | | 4,091 | |
| Net realized losses | | | (7 | ) | | | (114 | ) |
| | | | | | | |
Total Revenues | | | 79,645 | | | | 74,863 | |
EXPENSES | | | | | | | | |
Net losses & loss adjustment expenses(1) | | | 37,043 | | | | 37,134 | |
| Salaries & employee benefits | | | 13,368 | | | | 12,605 | |
| Interest expense | | | 1,388 | | | | 773 | |
Policy acquisition and other underwriting expenses(1) | | | 11,424 | | | | 10,822 | |
| Other administrative expenses | | | 7,959 | | | | 7,785 | |
| | | | | | | |
Total Expenses | | | 71,182 | | | | 69,119 | |
INCOME BEFORE INCOME TAXES AND EQUITY EARNINGS | | | 8,463 | | | | 5,744 | |
| Income tax expense | | | 2,847 | | | | 1,952 | |
| Equity earnings of affiliates | | | 9 | | | | (49 | ) |
| | | | | | | |
NET INCOME | | $ | 5,625 | | | $ | 3,743 | |
| | | | | | | |
NET OPERATING INCOME(2) | | $ | 5,629 | | | $ | 3,817 | |
| | | | | | | |
Diluted earnings per common share | | | | | | | | |
| Net income | | $ | 0.19 | | | $ | 0.13 | |
| Net operating income | | $ | 0.19 | | | $ | 0.13 | |
Diluted weighted average common shares outstanding | | | 29,452,693 | | | | 29,481,870 | |
GAAP ratios: | | | | | | | | |
| Loss & LAE ratio | | | 63.7 | % | | | 65.6 | % |
| Other underwriting expense ratio | | | 32.5 | % | | | 33.7 | % |
| | | | | | | |
| GAAP combined ratio | | | 96.2 | % | | | 99.3 | % |
| | | | | | | |
| | |
| (1) | | Both the loss and loss adjustment and expense ratios are calculated based upon the unconsolidated insurance company operations. The following supplemental information sets forth the intercompany fees, which are eliminated upon consolidation. |
| |
| (2) | | While net operating income is a non-GAAP disclosure, management believes this information is beneficial to reviewing the financial statements. Net operating income is net income less realized gains (losses) net of taxes associated with such gains (losses). |
MEADOWBROOK INSURANCE GROUP, INC.
FINANCIAL INFORMATION
SUPPLEMENT TO THE EARNINGS RELEASE
SUPPLEMENTAL INFORMATION
| | | | | | | | | |
| (In Thousands) | | FOR THE QUARTER | |
| | | ENDED MARCH 31, | |
| | | | | | | | | |
| | | | | | | | | |
| | | | 2006 | | | | 2005 | |
| | | | | | | |
Unconsolidated GAAP data — Ratio Calculation Table: | | | | | | | | |
| Net earned premiums | | $ | 63,124 | | | $ | 60,787 | |
| | | | | | | | | |
Consolidated net loss and LAE(1) | | $ | 37,043 | | | $ | 37,134 | |
| Intercompany claim fees | | | 3,158 | | | | 2,716 | |
| | | | | | | |
| Unconsolidated net loss and LAE | | $ | 40,201 | | | $ | 39,850 | |
| | | | | | | |
| | | | | | | | | |
| GAAP loss and LAE ratio | | | 63.7 | % | | | 65.6 | % |
| | | | | | | | | |
Consolidated policy acquisition and other underwriting expenses(1) | | $ | 11,424 | | | $ | 10,822 | |
| Intercompany administrative and other underwriting fees | | | 9,117 | | | | 9,656 | |
| | | | | | | |
| Unconsolidated policy acquisition and other underwriting expenses | | $ | 20,541 | | | $ | 20,478 | |
| | | | | | | |
| | | | | | | | | |
| GAAP other underwriting expense ratio | | | 32.5 | % | | | 33.7 | % |
| | | | | | | | | |
| GAAP combined ratio | | | 96.2 | % | | | 99.3 | % |
| | | | | | | | | |
| |
| | | | 2006 | | | | 2005 | |
| | | | | | | |
Unconsolidated GAAP data — Gross Commissions and Fees: | | | | | | | | |
| | | | | | | | | |
| Managed programs: | | | | | | | | |
| Management fees | | $ | 4,531 | | | $ | 4,196 | |
| Claims fees | | | 2,100 | | | | 1,752 | |
| Loss control fees | | | 538 | | | | 573 | |
| Reinsurance brokerage | | | 418 | | | | 345 | |
| | | | | | | |
| Total managed programs | | | 7,587 | | | | 6,866 | |
| Agency commissions | | | 4,261 | | | | 3,960 | |
| Intersegment revenue | | | (559 | ) | | | (727 | ) |
| | | | | | | |
| Net commissions and fees | | | 11,289 | | | | 10,099 | |
| Intercompany commissions and fees | | | 12,275 | | | | 12,372 | |
| | | | | | | |
| Gross commissions and fees | | $ | 23,564 | | | $ | 22,471 | |
| | | | | | | |
| | |
| (1) | | Both the loss and loss adjustment and expense ratios are calculated based upon the unconsolidated insurance company operations. The above table sets forth the intercompany fees, which are eliminated in consolidation. The GAAP combined ratio is the sum of the GAAP loss and loss adjustment expense ratio and the GAAP expense ratio. The GAAP loss and loss adjustment expense ratio is the unconsolidated net loss and loss adjustment expense in relation to net earned premium. The GAAP expense ratio is the unconsolidated policy acquisition and other underwriting expenses in relation to net earned premium. |
MEADOWBROOK INSURANCE GROUP, INC.
FINANCIAL INFORMATION
SUPPLEMENT TO THE EARNINGS RELEASE
UNAUDITED INCOME STATEMENT INFORMATION
(In Thousands, Except Share & Per Share Data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2003A | | | 2004A | | | Q105A | | Q205A | | Q305A | | Q405A | | | 2005A | | | Q106A | |
| | | | | | | | | | | | | | | | | |
SUMMARY DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Gross written premiums | | | $ | 253,280 | | | | $ | 313,493 | | | | $ | 90,992 | | | $ | 75,959 | | | $ | 86,075 | | | $ | 79,183 | | | | $ | 332,209 | | | | $ | 89,010 | | |
| Net written premiums | | | | 189,827 | | | | | 233,961 | | | | | 68,990 | | | | 61,288 | | | | 67,420 | | | | 60,436 | | | | | 258,134 | | | | | 69,381 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
INCOME STATEMENT | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVENUES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net earned premiums | | | $ | 151,205 | | | | $ | 214,493 | | | | $ | 60,787 | | | $ | 63,364 | | | $ | 63,205 | | | $ | 62,603 | | | | $ | 249,959 | | | | $ | 63,124 | | |
| Commissions and fees (net) | | | | 45,291 | | | | | 40,535 | | | | | 10,099 | | | | 8,034 | | | | 9,200 | | | | 8,583 | | | | | 35,916 | | | | | 11,289 | | |
| Net investment income | | | | 13,484 | | | | | 14,911 | | | | | 4,091 | | | | 4,477 | | | | 4,591 | | | | 4,816 | | | | | 17,975 | | | | | 5,239 | | |
| Net realized gains (losses) | | | | 823 | | | | | 339 | | | | | (114 | ) | | | 104 | | | | 41 | | | | 136 | | | | | 167 | | | | | (7 | ) | |
| | | | | | | | | | | | | | | | | |
Total Revenues | | | | 210,803 | | | | | 270,278 | | | | | 74,863 | | | | 75,979 | | | | 77,037 | | | | 76,138 | | | | | 304,017 | | | | | 79,645 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net losses & loss adjustment expenses | | | | 98,472 | | | | | 135,938 | | | | | 37,134 | | | | 37,728 | | | | 38,469 | | | | 38,211 | | | | | 151,542 | | | | | 37,043 | | |
| Policy acquisition and other underwriting expenses | | | | 23,606 | | | | | 33,424 | | | | | 10,822 | | | | 10,971 | | | | 11,947 | | | | 10,699 | | | | | 44,439 | | | | | 11,424 | | |
| Other administrative expenses | | | | 23,232 | | | | | 25,964 | | | | | 7,785 | | | | 6,046 | | | | 6,037 | | | | 7,315 | | | | | 27,183 | | | | | 7,959 | | |
| Salaries & employee benefits | | | | 48,238 | | | | | 52,297 | | | | | 12,605 | | | | 13,648 | | | | 12,913 | | | | 12,165 | | | | | 51,331 | | | | | 13,368 | | |
| Interest expense | | | | 977 | | | | | 2,281 | | | | | 773 | | | | 806 | | | | 948 | | | | 1,329 | | | | | 3,856 | | | | | 1,388 | | |
| | | | | | | | | | | | | | | | | |
Total Expenses | | | | 194,525 | | | | | 249,904 | | | | | 69,119 | | | | 69,199 | | | | 70,314 | | | | 69,719 | | | | | 278,351 | | | | | 71,182 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
INCOME BEFORE TAXES AND EQUITY EARNINGS | | | | 16,278 | | | | | 20,374 | | | | | 5,744 | | | | 6,780 | | | | 6,723 | | | | 6,419 | | | | | 25,666 | | | | | 8,463 | | |
| Income tax expense | | | | 6,182 | | | | | 6,352 | | | | | 1,952 | | | | 2,250 | | | | 2,048 | | | | 1,507 | | | | | 7,757 | | | | | 2,847 | | |
| Equity earnings of affiliates | | | | 3 | | | | | 39 | | | | | (49 | ) | | | 50 | | | | (13 | ) | | | 13 | | | | | 1 | | | | | 9 | | |
| | | | | | | | | | | | | | | | | |
NET INCOME | | | $ | 10,099 | | | | $ | 14,061 | | | | $ | 3,743 | | | $ | 4,580 | | | $ | 4,662 | | | $ | 4,925 | | | | $ | 17,910 | | | | $ | 5,625 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net realized capital gain (loss), net of tax | | | | 543 | | | | | 224 | | | | | (74 | ) | | | 68 | | | | 27 | | | | 88 | | | | | 109 | | | | | (4 | ) | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
OPERATING INCOME | | | $ | 9,556 | | | | $ | 13,837 | | | | $ | 3,817 | | | $ | 4,512 | | | $ | 4,635 | | | $ | 4,837 | | | | $ | 17,801 | | | | $ | 5,629 | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Weighted average common shares outstanding | | | | 29,268,799 | | | | | 29,420,508 | | | | | 29,481,870 | | | | 29,443,933 | | | | 29,269,638 | | | | 29,406,994 | | | | | 29,653,067 | | | | | 29,452,693 | | |
| Shares O/S at end of the period | | | | 29,022,435 | | | | | 29,074,832 | | | | | 29,017,682 | | | | 29,172,892 | | | | 28,759,282 | | | | 28,672,009 | | | | | 28,672,009 | | | | | 28,814,544 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
PER SHARE DATA (Diluted) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | $ | 0.35 | | | | $ | 0.48 | | | | $ | 0.13 | | | $ | 0.16 | | | $ | 0.16 | | | $ | 0.17 | | | | $ | 0.60 | | | | $ | 0.19 | | |
| Net realized gain (loss), net of tax | | | $ | 0.02 | | | | $ | 0.01 | | | | $ | — | | | $ | 0.01 | | | $ | — | | | $ | 0.01 | | | | $ | — | | | | $ | — | | |
| Operating income | | | $ | 0.33 | | | | $ | 0.47 | | | | $ | 0.13 | | | $ | 0.15 | | | $ | 0.16 | | | $ | 0.16 | | | | $ | 0.60 | | | | $ | 0.19 | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
OPERATING RATIO ANALYSIS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| GAAP Loss & LAE ratio | | | | 70.1 | % | | | | 67.9 | % | | | | 65.6 | % | | | 64.4 | % | | | 65.5 | % | | | 65.5 | % | | | | 65.2 | % | | | | 63.7 | % | |
| GAAP Expense ratio | | | | 34.3 | % | | | | 33.5 | % | | | | 33.7 | % | | | 32.7 | % | | | 34.3 | % | | | 33.2 | % | | | | 33.5 | % | | | | 32.5 | % | |
| | | | | | | | | | | | | | | | | |
GAAP Combined ratio | | | | 104.4 | % | | | | 101.4 | % | | | | 99.3 | % | | | 97.1 | % | | | 99.8 | % | | | 98.7 | % | | | | 98.7 | % | | | | 96.2 | % | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Unconsolidated GAAP data — Ratio Calculation Table: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net earned premiums | | | $ | 151,205 | | | | $ | 214,493 | | | | $ | 60,787 | | | $ | 63,364 | | | $ | 63,205 | | | $ | 62,603 | | | | $ | 249,959 | | | | $ | 63,124 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Consolidated net loss and LAE | | | $ | 98,472 | | | | $ | 135,938 | | | | $ | 37,134 | | | $ | 37,728 | | | $ | 38,469 | | | $ | 38,211 | | | | $ | 151,542 | | | | $ | 37,043 | | |
| Intercompany claim fees | | | | 7,514 | | | | | 9,691 | | | | | 2,716 | | | | 3,077 | | | | 2,944 | | | | 2,786 | | | | | 11,523 | | | | | 3,158 | | |
| | | | | | | | | | | | | | | | | |
| Unconsolidated net loss and LAE | | | $ | 105,986 | | | | $ | 145,629 | | | | $ | 39,850 | | | $ | 40,805 | | | $ | 41,413 | | | $ | 40,997 | | | | $ | 163,065 | | | | $ | 40,201 | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
GAAP Net loss and LAE ratio | | | | 70.1 | % | | | | 67.9 | % | | | | 65.6 | % | | | 64.4 | % | | | 65.5 | % | | | 65.5 | % | | | | 65.2 | % | | | | 63.7 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Consolidated Policy acquisition and other underwriting expenses | | | $ | 23,606 | | | | $ | 33,424 | | | | $ | 10,822 | | | $ | 10,971 | | | $ | 11,947 | | | $ | 10,699 | | | | $ | 44,439 | | | | $ | 11,424 | | |
| Intercompany administrative and other underwriting fees | | | | 28,296 | | | | | 38,359 | | | | | 9,656 | | | | 9,772 | | | | 9,743 | | | | 10,060 | | | | | 39,231 | | | | | 9,117 | | |
| | | | | | | | | | | | | | | | | |
| Unconsolidated policy acquisition and other underwriting expenses | | | $ | 51,902 | | | | $ | 71,783 | | | | $ | 20,478 | | | $ | 20,743 | | | $ | 21,690 | | | $ | 20,759 | | | | $ | 83,670 | | | | $ | 20,541 | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
GAAP Expense ratio | | | | 34.3 | % | | | | 33.5 | % | | | | 33.7 | % | | | 32.7 | % | | | 34.3 | % | | | 33.2 | % | | | | 33.5 | % | | | | 32.5 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
GAAP Combined Ratio | | | | 104.4 | % | | | | 101.4 | % | | | | 99.3 | % | | | 97.1 | % | | | 99.8 | % | | | 98.7 | % | | | | 98.7 | % | | | | 96.2 | % | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Unconsolidated Commissions & Fees | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Managed programs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Management fees | | | $ | 18,751 | | | | $ | 16,253 | | | | $ | 4,196 | | | $ | 4,100 | | | $ | 4,328 | | | $ | 4,117 | | | | $ | 16,741 | | | | $ | 4,531 | | |
| Claims fees | | | | 14,756 | | | | | 13,207 | | | | | 1,752 | | | | 1,766 | | | | 1,799 | | | | 1,796 | | | | | 7,113 | | | | | 2,100 | | |
| Loss control fees | | | | 2,303 | | | | | 2,174 | | | | | 573 | | | | 555 | | | | 611 | | | | 521 | | | | | 2,260 | | | | | 538 | | |
| Reinsurance brokerage | | | | 308 | | | | | 420 | | | | | 345 | | | | 94 | | | | 124 | | | | 97 | | | | | 660 | | | | | 418 | | |
| | | | | | | | | | | | | | | | | |
| Total managed programs | | | | 36,118 | | | | | 32,054 | | | | | 6,866 | | | | 6,515 | | | | 6,862 | | | | 6,531 | | | | | 26,774 | | | | | 7,587 | | |
| Agency commissions | | | | 9,378 | | | | | 9,805 | | | | | 3,960 | | | | 1,982 | | | | 2,917 | | | | 2,445 | | | | | 11,304 | | | | | 4,261 | | |
| Intersegment commissions and fees | | | | (205 | ) | | | | (1,324 | ) | | | | (727 | ) | | | (463 | ) | | | (579 | ) | | | (393 | ) | | | | (2,162 | ) | | | | (559 | ) | |
| | | | | | | | | | | | | | | | | |
| Net Commissions and fees | | | | 45,291 | | | | | 40,535 | | | | | 10,099 | | | | 8,034 | | | | 9,200 | | | | 8,583 | | | | | 35,916 | | | | | 11,289 | | |
| Intercompany commissions and fees | | | | 35,810 | | | | | 48,050 | | | | | 12,372 | | | | 12,849 | | | | 12,687 | | | | 12,846 | | | | | 50,754 | | | | | 12,275 | | |
| | | | | | | | | | | | | | | | | |
| Gross commissions and fees | | | $ | 81,101 | | | | $ | 88,585 | | | | $ | 22,471 | | | $ | 20,883 | | | $ | 21,887 | | | $ | 21,429 | | | | $ | 86,670 | | | | $ | 23,564 | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
