EXHIBIT 99
FOR IMMEDIATE RELEASE
- ---------------------
NEWS RELEASE
Triad Guaranty Inc.
NASDAQ Symbol: TGIC
www.triadguaranty.com
- ---------------------
Contact: Ken Jones
Senior Vice President, Chief Financial Officer
800-451-4872 ext.1105
kjones@tgic.com
---------------
TRIAD GUARANTY INC. REPORTS EARNINGS
OF $19.4 MILLION FOR THE THIRD QUARTER
WINSTON-SALEM, N.C., October 26, 2006-- Triad Guaranty Inc. (NASDAQ: TGIC) today
reported net income for the quarter ended September 30, 2006 of $19.4 million
compared with $15.3 million for the same quarter a year ago, an increase of 27%.
Diluted earnings per share were $1.30 for the third quarter of 2006 compared
with $1.03 for the third quarter of 2005, an increase of 26%. Realized
investment losses, net of taxes, did not impact earnings in the third quarter of
2006, compared with a reduction of $0.01 per share in the same quarter of 2005.
Net income for the nine months ended September 30, 2006 was $57.6 million
compared with $44.3 million for the same period in 2005. Diluted earnings per
share were $3.86 for the first nine months of 2006 compared to $2.99 for the
same period last year. Realized investment gains, net of taxes, contributed
$0.07 per share for the first nine months of 2006 and did not impact earnings
per share for the nine months ended September 30, 2005.
Mark K. Tonnesen, President and Chief Executive Officer, said, "Our growth in
insurance in force, coming from solid sales results in both the Primary and
Modified Pool channels coupled with continuing persistency improvements, led to
another quarter of strong revenue and earnings growth. Earned premiums increased
23% over both the quarter and year-to-date periods when compared with the prior
year. Our incurred loss ratio for the quarter at 35.7% was in line with our
expectations and included a $5.2 million increase in reserves from the preceding
quarter."
Mr. Tonnesen continued, "Our operating income, which excludes realized
investment gains and losses, set a record this quarter. We view this as a very
satisfactory result. Credit quality has remained a key area of focus; and our
performance in this regard is very encouraging. Expenses were higher in the
quarter and much of the increase was due to our planned investment in building
for a strong future. Complementing the earnings growth is the fact that reserves
and stockholders' equity at September 30, 2006 were up 18% and 12%,
respectively, from the beginning of the year."
Total insurance in force reached $53.9 billion at September 30, 2006, an
increase of 25% from $43.2 billion a year ago. Insurance in force included
Primary of $32.1 billion and Modified Pool of $21.8 billion at September 30,
2006, compared with $29.8 billion and $13.4 billion, respectively, a year
earlier. New insurance written during the third quarter of 2006 totaled $6.2
billion compared with $7.6 billion in the third quarter of 2005. Primary new
insurance written for the third quarter of 2006 was $3.3 billion, up slightly
from $3.1 billion in the third quarter of 2005. New insurance written from
Modified Pool transactions totaled $2.9 billion in the third quarter of 2006
compared with $4.5 billion for the same period of 2005. The underlying volume of
Modified Pool transactions that generates the new insurance written may
fluctuate significantly from quarter to quarter.
Earned premiums for the third quarter of 2006 were $54.0 million, an increase of
23% over the same period a year ago and up 7% from the second quarter of 2006.
The increase in earned premiums was due to growth in both Primary and Modified
Pool insurance in force. Annual persistency on the Primary business was 75.3% at
September 30, 2006 compared with 69.7% at September 30, 2005.
Incurred losses for the third quarter were $19.3 million, up 12% from the second
quarter and 14% from the third quarter of 2005. Total paid claims for the third
quarter of 2006 were $13.6 million, down from $14.4 million in the second
quarter of 2006, and up 1% compared with the third quarter of 2005. Severity on
Primary paid claims was $25,700 in the third quarter of 2006, down from $25,800
in the second quarter of 2006 and $26,200 in the third quarter of 2005. Total
defaults at September 30, 2006 were 6,939, up 7% from 6,485 at June 30, 2006 and
up from 5,653 reported at September 30, 2005. The increase from the prior year
reflects the continued seasoning of the portfolio and, to a lesser degree, the
impact of defaults related to last fall's hurricanes. The Primary delinquency
rate was 2.27% at September 30, 2006 compared with 2.21% at June 30, 2006 and
1.97% at September 30, 2005. The Modified Pool delinquency rate was 1.78% at
September 30, 2006 compared with 1.58% and 1.71% at June 30, 2006 and September
30, 2005, respectively.
Mr. Tonnesen concluded by saying, "Navigating the waters of the mortgage
industry is a critically important and challenging task. The Triad team has
demonstrated deftness this quarter through balancing growth, credit quality,
prudent investment and attention to balance sheet fundamentals."
Triad Guaranty Inc.'s wholly owned subsidiary, Triad Guaranty Insurance
Corporation, is a nationwide mortgage insurer providing credit enhancement
solutions to its lender customers and the capital markets. This allows buyers to
achieve homeownership sooner, facilitates the sale of mortgage loans in the
secondary market and protects lenders from credit default-related expenses. For
more information, please visit the Company's web site at
http://www.triadguaranty.com
Operating income, which is net income excluding realized gains and losses, and
diluted realized investment gains/(losses) per share, net of taxes, are non-GAAP
measures. We believe these measures are relevant and useful information to
investors because, except for losses on impaired securities, it shows the effect
that the Company's discretionary sales of investments had on earnings.
This document may contain forward-looking statements that involve various risks
and uncertainties. Actual results may differ from those set forth in the
forward-looking statements. Attention is directed to the discussion of risk and
uncertainties as part of the Safe Harbor statement under the Private Securities
Litigation Reform Act of 1995 contained in the Company's most recent annual
report, Form 10-K and other reports filed with the Securities and Exchange
Commission.
- ### -
(Relevant Triad Guaranty Inc. financial statistics follow this news release.)
Triad Guaranty Inc.
Consolidated Income Statement
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
---- ---- ---- ----
(Dollars in thousands except per share amounts)
Premiums written:
Direct $ 65,828 $ 53,272 $ 186,101 $ 152,158
Ceded (11,925) (10,299) (34,498) (29,863)
---------- ---------- ---------- ----------
Net premiums written $ 53,903 $ 42,973 $ 151,603 $ 122,295
========== ========== ========== ==========
Earned premiums $ 54,077 $ 44,128 $ 152,634 $ 124,026
Net investment income 6,761 5,896 19,518 17,054
Net realized investment gains (losses) (36) (170) 1,636 (124)
Other income 3 2 6 13
---------- ---------- ---------- ----------
Total revenues 60,805 49,856 173,794 140,969
Net losses and loss adjustment expenses 19,305 16,958 52,927 44,876
Interest expense on debt 693 694 2,080 2,080
Amortization of deferred policy acquisition costs 4,109 3,714 12,089 11,066
Other operating expenses - net 9,279 7,494 26,288 21,728
---------- ---------- ---------- ----------
Income before income taxes 27,419 20,996 80,410 61,219
Income taxes 8,027 5,702 22,878 16,966
---------- ---------- ---------- ----------
Net income $ 19,392 $ 15,294 $ 57,532 $ 44,253
========== ========== ========== ==========
Basic earnings per share $ 1.31 $ 1.04 $ 3.90 $ 3.01
Diluted earnings per share $ 1.30 $ 1.03 $ 3.86 $ 2.99
Weighted average common and common
stock equivalents outstanding (in thousands)
Basic 14,775 14,754 14,768 14,680
Diluted 14,923 14,837 14,900 14,810
NON-GAAP INFORMATION:
Diluted realized investment gains(losses) per share,
net of taxes $ - $ (0.01) $ 0.07 $ -
Triad Guaranty Inc.
Consolidated Balance Sheet
(Unaudited) (Unaudited)
September 30, December 31, September 30,
2006 2005 2005
---- ---- ----
(Dollars in thousands except per share amounts)
Assets:
Invested assets:
Fixed maturities, available for sale, at market $ 590,040 $ 534,064 $ 512,555
Equity securities, available for sale, at market 10,113 8,159 9,715
Other Investments 5,000 - -
Short-term investments 6,023 4,796 16,027
--------- --------- ---------
611,176 547,019 538,297
Cash and cash equivalents 9,230 8,934 1,391
Deferred policy acquisition costs 34,681 33,684 33,332
Prepaid federal income tax 159,268 139,465 132,947
Other assets 43,624 38,401 36,246
--------- --------- ---------
Total assets $ 857,979 $ 767,503 $ 742,213
========= ========= =========
Liabilities:
Losses and loss adjustment expenses $ 60,123 $ 51,074 $ 41,823
Unearned premiums 12,457 13,494 14,148
Deferred income tax 175,728 155,189 152,444
Long-term debt 34,508 34,501 34,499
Other liabilities 14,241 14,054 12,368
--------- --------- ---------
Total liabilities 297,057 268,312 255,282
Stockholders' equity:
Retained earnings 444,973 387,441 374,882
Accumulated other comprehensive income 11,836 11,106 12,301
Other equity accounts 104,113 100,644 99,748
--------- --------- ---------
Total stockholders' equity 560,922 499,191 486,931
--------- --------- ---------
Total liabilities and stockholders' equity $ 857,979 $ 767,503 $ 742,213
========= ========= =========
Stockholders' equity per share:
Including unrealized investment gains $ 37.68 $ 33.79 $ 32.86
Excluding unrealized investment gains $ 36.88 $ 33.04 $ 32.03
Common shares outstanding 14,887,889 14,774,153 14,818,506
Triad Guaranty Inc.
Sequential Quarterly Statistical Information
(Unaudited)
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
2006 2006 2006 2005 2005 2005 2005 2004 2004
---- ---- ---- ---- ---- ---- ---- ---- ----
(Dollars in millions unless otherwise indicated)
Insurance In Force
- ------------------
Primary insurance in force:
- Flow business $ 31,012 $ 30,064 $ 29,510 $ 29,364 $ 29,327 $ 28,904 $ 28,314 $ 28,191 $ 27,936
- Structured bulk transactions 1,094 719 381 428 492 585 687 773 875
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total Primary insurance in force 32,106 30,783 29,891 29,792 29,820 29,489 29,001 28,964 28,811
Modified Pool insurance in force 21,779 20,022 18,309 14,615 13,406 10,018 9,217 7,863 7,010
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total insurance in force $ 53,885 $ 50,804 $ 48,200 $ 44,407 $ 43,225 $ 39,507 $ 38,218 $ 36,827 $ 35,821
======== ======== ======== ======== ======== ======== ======== ======== ========
Number of insured loans:
- Primary 219,287 216,458 215,736 217,397 219,159 219,256 217,657 218,011 217,305
- Modified Pool 110,650 107,653 101,934 85,091 78,241 59,581 55,182 48,563 43,286
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total number of insured loans 329,937 324,111 317,670 302,488 297,400 278,837 272,839 266,574 260,591
======== ======== ======== ======== ======== ======== ======== ======== ========
Average loan size:
- Primary $ 146.4 $ 142.2 $ 138.6 $ 137.0 $ 136.1 $ 134.5 $ 133.2 $ 132.9 $ 132.6
- Modified Pool $ 196.8 $ 186.0 $ 179.6 $ 171.8 $ 171.3 $ 168.1 $ 167.0 $ 161.9 $ 161.9
Credit quality of primary insurance
in force(1)
Prime 81.5% 82.9% 84.6% 84.9% 85.5% 86.2% 87.2% 87.7% 88.2%
Alt-A 14.1% 12.3% 10.4% 9.9% 9.2% 8.4% 7.6% 7.3% 6.7%
A Minus 3.6% 3.9% 4.1% 4.2% 4.3% 4.4% 4.3% 4.2% 4.2%
Sub Prime 0.8% 0.9% 0.9% 1.0% 1.0% 1.0% 1.0% 0.9% 1.0%
Primary Alt A insurance in force by
credit score:
FICO between 620 and 659 11.6% 14.4% 17.9% 19.2% 20.0% 21.6% 22.7% 22.9% 21.4%
FICO between 660 and 699 33.9% 34.4% 34.0% 33.9% 34.4% 36.6% 38.0% 38.4% 39.4%
FICO between 700 and 739 30.3% 28.2% 27.1% 26.4% 26.0% 23.8% 22.7% 22.4% 23.0%
FICO greater than 739 24.2% 22.9% 21.0% 20.5% 19.6% 18.0% 16.5% 16.3% 16.1%
Primary flow insurance in force subject
to captive reinsurance arrangements 62.9% 62.7% 59.7% 59.0% 58.3% 57.2% 56.7% 56.6% 56.1%
Primary annual persistency rate 75.3% 72.7% 71.1% 70.0% 69.7% 70.9% 69.0% 68.5% 67.8%
<FN>
(1) The Credit Quality of loans notated above are defined as followed: Prime -
All business that is not Alt A, A-, or subprime; Alt A - Loans with credit
scores >= 620 and that were underwritten with low or no documentation; A minus -
Loans with credit scores >= 575 and <= 619; Subprime - Loans with credit scores
less than 575
</FN>
Triad Guaranty Inc.
Sequential Quarterly Statistical Information (con't.)
(Unaudited)
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
2006 2006 2006 2005 2005 2005 2005 2004 2004
---- ---- ---- ---- ---- ---- ---- ---- ----
(Dollars in millions unless otherwise indicated)
Risk In Force - Primary
- -----------------------
Primary net risk in force:
- Flow business $ 7,016 $ 6,781 $ 6,652 $ 6,624 $ 6,647 $ 6,509 $ 6,351 $ 6,337 $ 6,257
- Structured bulk business 305 185 127 143 159 191 223 250 283
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total Primary net risk in force $ 7,321 $ 6,966 $ 6,779 $ 6,767 $ 6,806 $ 6,700 $ 6,574 $ 6,587 $ 6,540
======== ======== ======== ======== ======== ======== ======== ======== ========
Primary risk in force by credit score
FICO less than 575 0.7% 0.7% 0.8% 0.8% 0.9% 1.0% 1.0% 1.1% 1.1%
FICO between 575 and 619 3.7% 3.9% 4.1% 4.3% 4.4% 4.6% 4.6% 4.6% 4.7%
FICO between 620 and 659 16.7% 17.3% 17.8% 17.9% 18.2% 18.3% 18.1% 17.9% 17.6%
FICO between 660 and 699 24.5% 24.5% 24.5% 24.4% 24.4% 24.6% 24.7% 24.7% 24.6%
FICO between 700 and 739 24.7% 24.2% 23.9% 23.9% 23.8% 23.7% 23.8% 23.8% 24.1%
FICO greater than 739 29.8% 29.3% 28.9% 28.7% 28.3% 27.9% 27.8% 27.8% 28.0%
Primary risk in force by policy year
2001 and prior 5.0% 5.7% 6.4% 6.9% 7.6% 8.6% 9.7% 10.7% 12.1%
2002 6.3% 7.1% 8.0% 8.6% 9.5% 11.1% 12.6% 14.0% 15.9%
2003 19.4% 22.0% 24.6% 26.6% 29.3% 33.4% 37.3% 40.5% 44.5%
2004 19.3% 21.9% 24.4% 26.1% 28.2% 31.4% 34.2% 34.8% 27.5%
2005 26.3% 29.1% 31.3% 31.8% 25.4% 15.5% 6.2% - -
2006 23.7% 14.2% 5.3% - - - - - -
Primary risk in force by loan type:
- Fixed 71.0% 72.6% 73.8% 73.7% 73.6% 74.1% 75.6% 76.4% 77.5%
- ARM (positive amortization) 19.4% 19.8% 21.3% 22.2% 23.1% 23.9% 23.7% 23.1% 22.2%
- ARM (potential negative amortization) 9.6% 7.6% 4.9% 4.1% 3.3% 2.0% 0.7% 0.5% 0.3%
Primary risk in force by property type:
- Condominium 9.2% 8.7% 8.3% 7.8% 7.5% 7.2% 7.1% 6.9% 6.8%
- Other (principally single-family
detached) 90.8% 91.3% 91.7% 92.2% 92.5% 92.8% 92.9% 93.1% 93.2%
Primary risk in force by occupancy status:
- Primary residence 89.7% 90.3% 91.3% 91.9% 92.7% 92.9% 93.3% 93.5% 93.8%
- Second home 7.0% 6.2% 5.3% 4.6% 3.9% 3.7% 3.4% 3.3% 3.1%
- Non-owner occupied 3.3% 3.5% 3.4% 3.5% 3.4% 3.4% 3.3% 3.2% 3.1%
Primary risk in force by mortgage amount:
- $200,000 or less 61.3% 64.3% 66.7% 67.7% 68.5% 69.9% 70.9% 71.2% 71.5%
- Greater than $200,000 38.7% 35.7% 33.3% 32.3% 31.5% 30.1% 29.1% 28.8% 28.5%
Triad Guaranty Inc.
Sequential Quarterly Statistical Information (con't.)
(Unaudited)
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
2006 2006 2006 2005 2005 2005 2005 2004 2004
---- ---- ---- ---- ---- ---- ---- ---- ----
(Dollars in millions unless otherwise indicated)
Risk In Force - Modified Pool
- -----------------------------
Modified Pool gross risk in force $ 837 $ 764 $ 751 $ 616 $ 579 $ 489 $ 462 $ 416 $ 388
Deductibles on gross risk $ 94 $ 90 $ 83 $ 71 $ 68 $ 59 $ 53 $ 42 $ 35
Modified pool risk in force by
credit score(2)
FICO less than 575 0.2% 0.2% 0.2% 0.2% 0.2% 0.3% 0.3% 0.4% 0.5%
FICO between 575 and 619 0.9% 1.0% 1.0% 1.1% 1.2% 1.6% 1.8% 2.2% 2.3%
FICO between 620 and 659 11.6% 12.0% 12.2% 14.2% 14.8% 17.4% 18.3% 20.5% 21.2%
FICO between 660 and 699 30.6% 30.2% 29.9% 31.1% 31.5% 33.2% 33.1% 32.9% 33.7%
FICO between 700 and 739 29.4% 29.5% 29.7% 28.4% 28.1% 27.2% 26.7% 25.1% 24.2%
FICO greater than 739 27.3% 27.1% 27.1% 25.0% 24.1% 20.2% 19.7% 18.9% 18.1%
Modified pool risk in force by loan type:
- Fixed 32.1% 35.5% 32.5% 41.3% 43.2% 47.9% 49.9% 59.9% 61.3%
- ARM (positive amortization) 56.1% 58.7% 65.8% 58.7% 56.8% 52.1% 50.1% 40.1% 38.7%
- ARM (potential negative amortization) 11.8% 5.8% 1.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Modified pool risk in force by property type:
- Condominium 7.3% 7.2% 6.7% 5.9% 4.8% 2.2% 1.4% 1.3% 1.0%
- Other (principally single-family
detached) 92.7% 92.8% 93.3% 94.1% 95.2% 97.8% 98.6% 98.7% 99.0%
Modified pool risk in force by
occupancy status:
- Primary residence 73.7% 73.9% 74.2% 74.2% 74.7% 74.9% 75.0% 74.1% 74.2%
- Second home 6.0% 5.9% 5.9% 5.7% 5.7% 5.7% 5.3% 5.2% 4.9%
- Non-owner occupied 20.3% 20.2% 19.9% 20.1% 19.6% 19.4% 19.7% 20.7% 20.9%
Modified pool risk in force by
mortgage amount:
- $200,000 or less 39.6% 41.9% 42.9% 46.4% 46.3% 47.1% 47.5% 50.4% 50.3%
- Greater than $200,000 60.4% 58.1% 57.1% 53.6% 53.7% 52.9% 52.5% 49.6% 49.7%
<FN>
(2) Percentages represent distribution of direct risk in force (RIF) on a per
policy basis and do not account for applicable stop loss amounts.
</FN>
Triad Guaranty Inc.
Sequential Quarterly Statistical Information (con't.)
(Unaudited)
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
2006 2006 2006 2005 2005 2005 2005 2004 2004
---- ---- ---- ---- ---- ---- ---- ---- ----
(Dollars in millions unless otherwise indicated)
Production
- ----------
New insurance written (NIW):
- Primary flow business $ 2,844 $ 2,559 $ 1,947 $ 2,263 $ 3,091 $ 2,941 $ 2,161 $ 2,456 $ 2,665
- Primary structured bulk business 436 385 1 - 2 - 30 20 51
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total Primary 3,280 2,944 1,948 2,263 3,093 2,941 2,191 2,476 2,716
- Modified Pool 2,956 2,980 4,606 2,255 4,526 1,798 2,103 1,606 1,297
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total NIW $ 6,236 $ 5,924 $ 6,553 $ 4,518 $ 7,619 $ 4,739 $ 4,294 $ 4,082 $ 4,013
======== ======== ======== ======== ======== ======== ======== ======== ========
New risk written:
- Primary (gross) $ 865 $ 730 $ 490 $ 583 $ 822 $ 723 $ 540 $ 642 $ 724
- Modified Pool 106 92 142 55 97 46 62 46 27
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total new risk written $ 971 $ 822 $ 633 $ 638 $ 919 $ 769 $ 602 $ 688 $ 751
======== ======== ======== ======== ======== ======== ======== ======== ========
Primary NIW by loan-to-value ratio (LTV):
- Greater than 95% 20.7% 12.2% 10.1% 11.0% 14.1% 11.6% 13.2% 13.7% 14.5%
- 90.01% to 95.00% 23.3% 22.0% 25.0% 35.9% 43.0% 30.7% 30.1% 32.9% 36.1%
- 90.00% and below 56.0% 65.8% 64.9% 53.1% 42.9% 57.7% 56.7% 53.4% 49.4%
Percent of Primary NIW from refinancings 28.9% 32.5% 33.5% 28.6% 26.5% 33.6% 34.9% 30.1% 21.9%
Percent of Primary flow NIW subject to
captive reinsurance arrangements 61.5% 61.2% 55.1% 55.1% 58.1% 54.6% 47.4% 52.8% 51.3%
<FN>
Note: The Company periodically enters into structured transactions involving
loans that have insurance effective dates within the current reporting period
but for which detailed loan information regarding the insured loans is not
provided until later. When this occurs, the Company accrues due premium in the
reporting period based on each loan's insurance effective date; however, the
loans are not reflected in the Company's in force and related data totals until
the loan level detail is reported to the Company. At September 30, 2006, the
Company had no structured transactions with effective dates within the third
quarter for which loan level detail had not been received.
</FN>
Triad Guaranty Inc.
Sequential Quarterly Statistical Information (con't.)
(Unaudited)
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
2006 2006 2006 2005 2005 2005 2005 2004 2004
---- ---- ---- ---- ---- ---- ---- ---- ----
(Dollars in millions unless otherwise indicated)
Delinquencies and Claim Information
- ------------------------------------
Total primary delinquent loans 4,972 4,787 5,116 5,336 4,312 4,013 4,134 4,203 3,902
- Flow business 4,668 4,460 4,730 4,894 3,892 3,593 3,694 3,739 3,469
- Bulk business 304 327 386 442 420 420 440 464 433
Total modified pool delinquent loans 1,967 1,698 1,776 1,827 1,341 1,312 1,329 1,242 1,106
- Structrued with deductibles 1,230 1,099 1,127 1,090 709 612 538 410 197
- Structured without deductibles 737 599 649 737 632 700 791 832 909
Total primary delinquency rate 2.27% 2.21% 2.37% 2.45% 1.97% 1.83% 1.90% 1.93% 1.80%
Modified Pool delinquency rate 1.78% 1.58% 1.74% 2.15% 1.71% 2.20% 2.41% 2.56% 2.56%
Primary average severity ($ thousands) $ 25.7 $ 25.8 $ 26.2 $ 26.2 $ 26.2 $ 28.9 $ 24.7 $ 24.1 $ 19.3
- Flow business $ 25.0 $ 25.0 $ 26.0 $ 24.9 $ 26.1 $ 29.0 $ 24.9 $ 23.6 $ 19.7
- Bulk business $ 37.6 $ 32.5 $ 27.4 $ 40.5 $ 27.4 $ 27.6 $ 21.0 $ 28.4 $ 14.1
Primary net paid claims ($ thousands) $ 13,016 $ 13,501 $ 13,305 $ 11,562 $ 11,982 $ 12,147 $ 8,681 $ 7,138 $ 6,547
- Flow business $ 11,887 $ 11,614 $ 11,444 $ 10,021 $ 10,555 $ 10,931 $ 8,283 $ 6,172 $ 6,224
- Bulk business $ 1,129 $ 1,887 $ 1,861 $ 1,540 $ 1,427 $ 1,216 $ 398 $ 966 $ 324
Modified Pool average
severity ($ thousands) $ 18.8 $ 19.4 $ 16.4 $ 18.0 $ 22.0 $ 24.5 $ 17.6 $ 14.7 $ 12.4
Modified Pool net paid
claims ($ thousands) $ 603 $ 930 $ 1,100 $ 862 $ 1,475 $ 1,150 $ 970 $ 1,193 $ 733
Financial Information
- ---------------------
Loss ratio - GAAP 35.7% 34.1% 34.1% 48.9% 38.4% 42.0% 27.4% 27.0% 25.8%
Expense ratio - GAAP 24.8% 25.6% 25.6% 26.4% 26.1% 26.4% 28.1% 27.8% 28.6%
Combined ratio - GAAP 60.5% 59.7% 59.7% 75.3% 64.5% 68.4% 55.5% 54.8% 54.4%
Risk-to-capital ratio 12.0:1 11.8:1 12.3:1 12.6:1 13.0:1 13.1:1 13.7:1 14.0:1 14.4:1