EXHIBIT 99.1
[MEADOWBROOK(R) INSURANCE LOGO]
MEADOWBROOK INSURANCE GROUP, INC.
(NYSE - MIG)
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CONTACT: ROBERT S. CUBBIN, PRESIDENT & CHIEF EXECUTIVE OFFICER, (248) 204-8031
KAREN M. SPAUN, SVP & CHIEF FINANCIAL OFFICER, (248) 204-8178
JENNIFER BARBER, SENIOR FINANCIAL ANALYST, (248) 204-8159
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MEADOWBROOK INSURANCE GROUP, INC.
REPORTS SECOND QUARTER 2003
NET INCOME OF $2.7 MILLION
BOARD APPROVES ADDITIONAL 1,000,000 SHARE REPURCHASE PLAN
SOUTHFIELD, MICHIGAN
August 7, 2003
Second Quarter Results:
Meadowbrook Insurance Group (NYSE: MIG) reported net income for the quarter
ended June 30, 2003 of $2.7 million, or $0.09 per diluted share, compared to
$122,000, or $0.01 per diluted share for the comparable period in 2002. The
increase in net income reflects higher fee-for-service revenue, a reduction in
interest expense, improvement in underwriting results, and overall expense
management.
"We are pleased by the progress we are making in improving profitability,"
commented Meadowbrook's President and Chief Executive Officer, Robert S. Cubbin.
"We remain on track with our plan to leverage fixed costs, maintain underwriting
discipline, and to focus on growing our profitable specialty program business."
During the second quarter of 2003, gross written premium increased $13.4
million, or 31.3%, to $56.2 million, from $42.8 million in the comparable period
in 2002. This increase reflects the anticipated growth from premium rate
increases, the conversion of existing controlled programs to the Company's own
insurance company subsidiaries, and new business resulting from the previously
announced renewal rights contract.
The gross written premium in 2002 was impacted by planned decreases to reduce
leverage ratios. The lower level of gross written premium in 2002 is now
reflected in lower net earned premium and revenue in the current quarter.
[STAR INSURANCE COMPANY LETTERHEAD]
PRESS RELEASE PAGE 2
Revenues:
Revenues decreased $6.0 million, or 10.5%, to $51.5 million in the second
quarter of 2003, from $57.5 million for the comparable period in 2002.
Net earned premium decreased $8.1 million, or 18.2%, to $36.2 million in the
second quarter of 2003, from $44.3 million during the same period of 2002. This
decrease reflects the current effect from the prior year reduction in written
premium from programs previously discontinued. This decrease was partially
offset by controlled growth in new and existing programs.
Net commissions and fees increased $1.3 million, or 13.1%, to $11.3 million in
the second quarter of 2003, from $10.0 million during the same period of 2002.
This increase includes $4.0 million from new fee-for-service contracts and a
decrease in consolidated fees as the result of the conversion of an existing
fee-based program into an insured program within the Company's underwriting
subsidiary. This conversion causes the intercompany fees associated with the
program to now be eliminated upon consolidation.
Expenses:
Incurred losses decreased $6.5 million, or 21.3%, to $24.1 million in the second
quarter of 2003, from $30.6 million in the comparable period of 2002. The second
quarter 2003 loss and loss adjustment expense ratio was 71.1% compared to 72.6%
in the comparable period of 2002. This improvement in the loss ratio reflects
rate increases, the cancellation of the surplus relief treaty, and the absence
earned premium from discontinued programs. The 2003 second quarter net loss and
loss adjustment expense ratio was impacted by a loss of $1.0 million
(representing 2.8 percentage points) resulting from property damage caused by
storms in the Midwest during May 2003.
Commenting on the second quarter loss ratio, Mr. Cubbin stated: "Our business
fundamentals continue to improve and reserves from discontinued programs have
remained stable. Despite the net impact of $1.0 million in losses from the May
storms, we believe that we will meet our full year 2003 expectations. The
current accident year results are reflective of actual improvement
year-over-year and are a sound indication of the positive trends in our
continuing business."
Salaries and employee benefits for the second quarter of 2003 increased $2.6
million, or 28.5%, to $11.9 million, from $9.2 million in the second quarter of
2002, due primarily to increases in staff related to new fee-for-service
contracts.
Policy acquisition and other underwriting expenses decreased $4.9 million, or
45.3%, to $6.0 million in the second quarter of 2003, from $10.9 million in the
comparable period in 2002. The GAAP expense ratio was 35.3% in the second
quarter of 2003, compared to 35.8% in the second quarter of 2002. Reductions in
overall outside commission expense and the ability to leverage fixed costs had a
favorable impact in the second quarter of 2003.
Other administrative expenses decreased $0.8 million, or 12.6%, to $5.3 million
in the second quarter of 2003, from $6.1 million in the comparable period in
2002. This decrease is primarily the result of a change in accrued policyholder
dividends as a result of a reevaluation of the gross loss experience on
participating policies. This decrease was partially offset by administrative
expenses associated with new fee-for-service contracts.
PRESS RELEASE PAGE 3
Interest expense decreased $662,000, or 75.7%, to $212,000 in the second quarter
of 2003, from the comparable period in 2002. This reflects the decrease in the
average outstanding debt from $53.7 million in 2002, to $20.9 million in 2003. A
decline in the effective interest rate also had a favorable impact on interest
expense during the second quarter of 2003. At June 30, 2003, the Company's debt
to equity ratio was 10.8%, compared to 18.7% at December 31, 2002.
Cash flow from operations was $17.4 million for the second quarter of 2003,
compared to cash used in operations of $4.4 million in the same period of 2002.
The quarter's positive cash flow reflects an increase in earnings, growth in
written premium, and routine collections on reinsurance recoverables.
Year to Date Results:
Net Income:
Net income for the six months ended June 30, 2003 was $5.4 million, or $0.18 per
diluted share, compared to net income of $1.0 million, or $0.09 per diluted
share for the comparable period in 2002.
Gross written premium increased $24.7 million, or 24.6%, to $125.0 million for
the six months ended June 30, 2003, from $100.3 million for the comparable
period in 2002.
Revenues:
Revenues decreased $12.7 million, or 11.7%, to $95.7 million for the six months
ended June 30, 2003, from $108.4 million for the comparable period in 2002.
Net earned premium decreased $19.4 million, or 23.3%, to $63.6 million for the
six months ended June 30, 2003, from $83.0 million during the same period of
2002.
Net commissions and fees increased $5.7 million, or 30.1%, to $24.6 million for
the six months ended June 30, 2003, from $18.9 million during the same period of
2002.
Expenses:
Incurred losses decreased $13.8 million, or 25.1%, to $41.3 million for the six
months ended June 30, 2003, from $55.1 million in the comparable period of 2002.
The loss and loss adjustment expense ratio for the six months ended June 30,
2003 was 70.2%, consistent with the comparable period of 2002.
Other expenses decreased $5.7 million, or 10.9%, to $46.4 million for the six
months ended June 30, 2003, from $52.0 million in the comparable period of 2002.
The GAAP expense ratio was 35.8% for the six months ended June 30, 2003,
compared to 36.8% in 2002.
PRESS RELEASE PAGE 4
Other Matters:
Shareholders' equity increased to $153.4 million, or $5.29 per common share, at
June 30, 2003, compared to $147.4 million, or $4.98 per common share, at
December 31, 2002. The increase in shareholders' equity reflects year-to-date
net income, share repurchases and unrealized appreciation of $2.1 million in the
Company's investment portfolio. During 2003, the Company has repurchased and
retired 569,100 shares for a total cost of approximately $1.6 million.
On August 6, 2003, the Board of Directors authorized management to repurchase up
to an additional 1,000,000 shares of the Company's common stock under the
existing share repurchase plan. On September 17, 2002, the Board of Directors
authorized management to repurchase up to 1,000,000 shares of the Company's
common stock in market transactions. To date, the Company has repurchased and
retired 764,800 shares.
Statutory surplus was relatively unchanged at $90.8 million at June 30, 2003.
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 insureds of all sizes. 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.
EARNINGS RELEASE PAGE 5
MEADOWBROOK INSURANCE GROUP, INC.
FINANCIAL INFORMATION
SUPPLEMENT TO THE EARNINGS RELEASE
UNAUDITED BALANCE SHEET INFORMATION
JUNE 30, DECEMBER 31,
(IN THOUSANDS, EXCEPT PER SHARE DATA) 2003 2002
- ------------------------------------- ------------ ------------
BALANCE SHEET DATA
ASSETS
Cash and invested assets $ 307,608 $ 286,050
Premium & agents balances 77,599 71,420
Reinsurance recoverable 201,101 202,213
Deferred policy acquisition costs 17,189 12,140
Prepaid reinsurance premiums 21,169 18,115
Goodwill 28,997 28,997
Other assets 55,495 55,904
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TOTAL ASSETS $ 709,158 $ 674,839
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LIABILITIES
Loss and loss adjustment
expense reserves $ 369,075 $ 374,933
Unearned premium reserves 100,097 68,678
Debt 20,785 32,497
Other liabilities 65,756 51,336
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TOTAL LIABILITIES 555,713 527,444
STOCKHOLDERS' EQUITY
Common stockholders' equity 153,445 147,395
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 709,158 $ 674,839
============ ============
BOOK VALUE PER COMMON SHARE $ 5.29 $ 4.98
BOOK VALUE PER COMMON SHARE EXCLUDING
UNREALIZED GAIN/LOSS ON AVAILABLE FOR SALE
SECURITIES, NET OF DEFERRED TAXES $ 4.92 $ 4.69
EARNINGS RELEASE PAGE 6
MEADOWBROOK INSURANCE GROUP, INC.
FINANCIAL INFORMATION
SUPPLEMENT TO THE EARNINGS RELEASE
UNAUDITED INCOME STATEMENT INFORMATION
(IN THOUSANDS, EXCEPT FOR THE QUARTER FOR THE SIX MONTHS
SHARE & PER SHARE DATA) ENDED JUNE 30, ENDED JUNE 30,
- ------------------------- -------------- --------------
SUMMARY DATA 2003 2002 2003 2002
- ------------ ------------ ------------ ------------ ------------
Gross premiums written $ 56,220 $ 42,816 $ 125,009 $ 100,322
Net premiums written 40,177 40,722 91,979 78,626
REVENUES
Net premiums earned $ 36,230 $ 44,313 $ 63,614 $ 82,970
Commissions and fees (net) 11,271 9,968 24,627 18,932
Net investment income 3,577 3,505 6,930 6,629
Net capital gains (losses) 374 (310) 579 (301)
Gain on sale of subsidiary - - - 199
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TOTAL REVENUES 51,452 57,476 95,750 108,429
EXPENSES
Net losses & loss adjustment expenses (1) 24,109 30,638 41,295 55,096
Salaries & employee benefits 11,868 9,235 23,800 18,848
Interest on notes payable 212 874 449 2,124
Gain on debt reduction - (359) - (359)
Policy acquisition and other underwriting expenses (1) 5,993 10,948 9,749 19,934
Other administrative expenses 5,306 6,073 12,390 11,491
------------ ------------ ------------ ------------
TOTAL EXPENSES 47,488 57,409 87,683 107,134
INCOME BEFORE TAXES 3,964 67 8,067 1,295
Federal income tax expense (benefit) 1,285 (55) 2,632 263
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NET INCOME $ 2,679 $ 122 $ 5,435 $ 1,032
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NET OPERATING INCOME (2) $ 2,432 $ 327 $ 5,053 $ 1,099
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DILUTED EARNINGS PER COMMON SHARE
Net income $ 0.09 $ 0.01 $ 0.18 $ 0.09
Net operating income $ 0.08 $ 0.02 $ 0.17 $ 0.10
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 29,261,119 13,902,073 29,389,101 11,220,758
GAAP RATIOS:
Loss & LAE ratio 71.1% 72.6% 70.2% 70.2%
Other underwriting expense ratio 35.3% 35.8% 35.8% 36.8%
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GAAP combined ratio 106.4% 108.4% 106.0% 107.0%
============ ============ ============ ============
(1) Both the loss and loss adjustment and expense ratios are calculated based
upon the unconsolidated insurance company operations. The supplemental
information contained on page 7 sets forth the intercompany fees, which are
eliminated in 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).
EARNINGS RELEASE PAGE 7
MEADOWBROOK INSURANCE GROUP, INC.
FINANCIAL INFORMATION
SUPPLEMENT TO THE EARNINGS RELEASE
SUPPLEMENTAL INFORMATION
(IN THOUSANDS) FOR THE QUARTER FOR THE SIX MONTHS
- -------------- ENDED JUNE 30, ENDED JUNE 30,
-------------- --------------
2003 2002 2003 2002
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UNCONSOLIDATED GAAP DATA - RATIO CALCULATION TABLE:
Net earned premium $ 36,230 $ 44,313 $ 63,614 $ 82,970
Consolidated net loss and LAE (1) $ 24,109 $ 30,638 $ 41,295 $ 55,096
Intercompany claim fees 1,635 1,521 3,355 3,130
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Unconsolidated net loss and LAE $ 25,744 $ 32,159 $ 44,650 $ 58,226
========== ========== ========== ==========
GAAP loss and LAE ratio 71.1% 72.6% 70.2% 70.2%
Consolidated policy acquisition and other underwriting expenses (1) $ 5,993 $ 10,948 $ 9,749 $ 19,934
Intercompany administrative and other underwriting fees 6,784 4,938 13,019 10,570
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Unconsolidated policy acquisition and other underwriting expenses $ 12,777 $ 15,886 $ 22,768 $ 30,504
========== ========== ========== ==========
GAAP other underwriting expense ratio 35.3% 35.8% 35.8% 36.8%
GAAP combined ratio 106.4% 108.4% 106.0% 107.0%
2003 2002 2003 2002
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UNCONSOLIDATED GAAP DATA - GROSS COMMISSIONS AND FEES:
Managed programs:
Management fees $ 4,840 $ 3,421 $ 10,188 $ 6,582
Claims fees 3,755 1,805 8,137 3,539
Loss control fees 549 739 1,126 1,335
Reinsurance brokerage 106 123 161 195
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Total managed programs 9,250 6,088 19,612 11,651
Agency commissions 3,675 3,976 7,822 7,614
Intersegment revenue (1,654) (96) (2,807) (333)
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Net commissions and fees 11,271 9,968 24,627 18,932
Intercompany commissions and fees 8,419 6,459 16,374 13,700
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Gross commissions and fees $ 19,690 $ 16,427 $ 41,001 $ 32,632
========== ========== ========== ==========
(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.
EARNINGS RELEASE PAGE 8
MEADOWBROOK INSURANCE GROUP, INC.
FINANCIAL INFORMATION
SUPPLEMENT TO THE EARNINGS RELEASE
UNAUDITED INCOME STATEMENT INFORMATION
(IN THOUSANDS, EXCEPT
SHARE & PER SHARE DATA)
- -------------------------
2001A Q102A Q202A Q302A
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SUMMARY DATA
- ------------
Gross premiums written $ 299,104 $ 57,506 $ 42,816 $ 40,591
Net premiums written 186,083 37,904 40,722 29,838
INCOME STATEMENT
- ----------------
REVENUES
Net premiums earned $ 163,665 $ 38,657 $ 44,313 $ 31,340
Commissions and fees (net) 40,675 8,964 9,968 8,654
Net Investment income 14,228 3,124 3,505 3,751
Net capital gains (losses) 735 9 (310) 626
(Loss) gain on sale of subsidiary (1,097) 199 -- --
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TOTAL REVENUES 218,206 50,953 57,476 44,371
EXPENSES
Net losses & loss adj. expenses 125,183 24,458 30,638 24,639
Policy acquisition and other underwriting expenses 31,662 8,986 10,948 6,945
Other administrative expenses 22,778 5,418 6,073 5,977
Salaries & employee benefits 44,179 9,613 9,235 9,130
Gain on debt reduction -- -- (359) --
Interest on notes payable 4,516 1,250 874 582
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TOTAL EXPENSES 228,318 49,725 57,409 47,273
PRETAX (LOSS) INCOME (10,112) 1,228 67 (2,902)
Federal income tax (benefit) expense (3,602) 318 (55) (1,011)
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NET (LOSS) INCOME $ (6,510) $ 910 $ 122 $ (1,891)
Net realized capital (loss) gain, net of tax (239) 138 (205) 413
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OPERATING (LOSS) INCOME $ (6,271) $ 772 $ 327 $ (2,304)
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Weighted average common shares outstanding 8,512,186 8,517,861 13,902,073 29,785,580
Shares O/S at end of the period 8,512,194 8,512,194 29,787,194 29,744,894
PER SHARE DATA (Diluted)
Net (loss) income $ (0.76) $ 0.11 $ 0.01 $ (0.06)
Net realized capital (loss) gain, net of tax $ (0.02) $ 0.02 $ (0.01) $ 0.02
Operating (loss) income $ (0.74) $ 0.09 $ 0.02 $ (0.08)
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OPERATING RATIO ANALYSIS
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GAAP Loss & LAE ratio 81.1% 67.4% 72.6% 83.3%
GAAP Expense ratio 36.0% 37.8% 35.8% 36.2%
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GAAP COMBINED RATIO 117.1% 105.2% 108.4% 119.5%
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UNCONSOLIDATED GAAP DATA - RATIO CALCULATION TABLE:
- --------------------------------------------------- ----------------------------------------------------------------
Net earned premium $ 163,665 $ 38,657 $ 44,313 $ 31,340
Consolidated net loss and LAE $ 125,183 $ 24,458 $ 30,638 $ 24,639
Intercompany claim fees 7,520 1,609 1,521 1,474
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Unconsolidated net loss and LAE $ 132,703 $ 26,067 $ 32,159 $ 26,113
================================================================
GAAP NET LOSS AND LAE RATIO 81.1% 67.4% 72.6% 83.3%
Consolidated Policy acquisition and other underwriting expenses $ 31,662 $ 8,986 $ 10,948 $ 6,945
Intercompany administrative and other underwriting fees 27,309 5,632 4,938 4,409
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Unconsolidated policy acquisition and other underwriting expenses $ 58,971 $ 14,618 $ 15,886 $ 11,354
================================================================
GAAP EXPENSE RATIO 36.0% 37.8% 35.8% 36.2%
GAAP COMBINED RATIO 117.1% 105.2% 108.4% 119.5%
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UNCONSOLIDATED COMMISSIONS & FEES
Managed programs:
Management fees $ 13,318 $ 3,161 $ 3,421 $ 3,008
Claims fees 8,594 1,734 1,805 1,877
Loss control fees 2,326 596 739 637
Reinsurance brokerage 1,233 72 123 65
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Total managed programs 25,471 5,563 6,088 5,587
Agency commissions 15,706 3,638 3,976 3,113
Intersegment commissions and fees (502) (237) (96) (46)
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Net Commissions and fees 40,675 8,964 9,968 8,654
Intercompany commissions and fees 34,829 7,241 6,459 5,883
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Gross commissions and fees $ 75,504 $ 16,205 $ 16,427 $ 14,537
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(In Thousands, Except
Share & Per Share Data)
- -------------------------
Q402A 2002A Q103A Q203A
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SUMMARY DATA
- ------------
Gross premiums written $ 42,724 $ 183,637 $ 68,789 $ 56,220
Net premiums written 31,331 139,795 51,802 40,177
INCOME STATEMENT
- ----------------
REVENUES
Net premiums earned $ 31,073 $ 145,383 $ 27,384 $ 36,230
Commissions and fees (net) 9,995 37,581 13,356 11,271
Net Investment income 3,578 13,958 3,353 3,577
Net capital gains (losses) 341 666 205 374
(Loss) gain on sale of subsidiary -- 199 -- --
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TOTAL REVENUES 44,987 197,787 44,298 51,452
EXPENSES
Net losses & loss adj. expenses 18,999 98,734 17,186 24,109
Policy acquisition and other underwriting expenses 6,756 33,635 3,756 5,993
Other administrative expenses 5,548 23,016 7,084 5,306
Salaries & employee benefits 9,681 37,659 11,932 11,868
Gain on debt reduction -- (359) -- --
Interest on notes payable 315 3,021 237 212
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TOTAL EXPENSES 41,299 195,706 40,195 47,488
PRETAX (LOSS) INCOME 3,688 2,081 4,103 3,964
Federal income tax (benefit) expense 1,179 431 1,347 1,285
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NET (LOSS) INCOME $ 2,509 $ 1,650 $ 2,756 $ 2,679
Net realized capital (loss) gain, net of tax 225 571 135 247
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OPERATING (LOSS) INCOME $ 2,284 $ 1,079 $ 2,621 $ 2,432
================================================================
Weighted average common shares outstanding 29,644,402 20,543,878 29,510,681 29,261,119
Shares O/S at end of the period 29,591,494 29,591,494 29,363,694 29,022,394
PER SHARE DATA (Diluted)
Net (loss) income $ 0.08 $ 0.08 $ 0.09 $ 0.09
Net realized capital (loss) gain, net of tax $ 0.00 $ 0.03 $ 0.00 $ 0.01
Operating (loss) income $ 0.08 $ 0.05 $ 0.09 $ 0.08
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OPERATING RATIO ANALYSIS
- ------------------------
GAAP Loss & LAE ratio 66.1% 72.1% 69.0% 71.1%
GAAP Expense ratio 36.1% 36.5% 36.5% 35.3%
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GAAP COMBINED RATIO 102.2% 108.6% 105.5% 106.4%
================================================================
UNCONSOLIDATED GAAP DATA - RATIO CALCULATION TABLE:
- --------------------------------------------------- ----------------------------------------------------------------
Net earned premium $ 31,073 $ 145,383 $ 27,384 $ 36,230
Consolidated net loss and LAE $ 18,999 $ 98,734 $ 17,186 $ 24,109
Intercompany claim fees 1,550 6,154 1,720 1,635
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Unconsolidated net loss and LAE $ 20,549 $ 104,888 $ 18,906 $ 25,744
================================================================
GAAP NET LOSS AND LAE RATIO 66.1% 72.1% 69.0% 71.1%
Consolidated Policy acquisition and other underwriting expenses $ 6,756 $ 33,635 $ 3,756 $ 5,993
Intercompany administrative and other underwriting fees 4,466 19,445 6,235 6,784
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Unconsolidated policy acquisition and other underwriting expenses $ 11,222 $ 53,080 $ 9,991 $ 12,777
================================================================
GAAP EXPENSE RATIO 36.1% 36.5% 36.5% 35.3%
GAAP COMBINED RATIO 102.2% 108.6% 105.5% 106.4%
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UNCONSOLIDATED COMMISSIONS & FEES
Managed programs:
Management fees $ 3,171 $ 12,761 $ 5,348 $ 4,840
Claims fees 2,660 8,076 4,382 3,755
Loss control fees 618 2,590 577 549
Reinsurance brokerage 49 309 55 106
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Total managed programs 6,498 23,736 10,362 9,250
Agency commissions 3,603 14,330 4,147 3,675
Intersegment commissions and fees (106) (485) (1,153) (1,654)
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Net Commissions and fees 9,995 37,581 13,356 11,271
Intercompany commissions and fees 6,016 25,599 7,955 8,419
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Gross commissions and fees $ 16,011 $ 63,180 $ 21,311 $ 19,690
================================================================