EXHIBIT 99.1
[MEADOWBROOK LETTERHEAD]
MEADOWBROOK INSURANCE GROUP, INC.
(NYSE - MIG)
CONTACT: ROBERT S. CUBBIN, PRESIDENT & CHIEF EXECUTIVE OFFICER, (248) 204-8031
KAREN M. SPAUN, SVP & CHIEF FINANCIAL OFFICER, (248) 204-8178
JENNIFER BARBER, DIRECTOR OF FINANCIAL ANALYSIS, (248) 204-8159
MEADOWBROOK INSURANCE GROUP, INC.
REPORTS THIRD QUARTER 2003
NET INCOME OF $2.5 MILLION
SOUTHFIELD, MICHIGAN
NOVEMBER 6, 2003
Third Quarter Results:
Meadowbrook Insurance Group (NYSE: MIG) reported net income for the quarter
ended September 30, 2003 of $2.5 million, or $0.09 per diluted share, compared
to a net loss of ($1.9 million), or ($0.06) per diluted share for the comparable
period in 2002. The increase in net income reflects premium growth in profitable
programs, higher fee-for-service revenue, stable reserves, 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 and
fee-for-service businesses."
During the third quarter of 2003, gross written premium increased $25.2 million,
or 62.2%, to $65.8 million, from $40.6 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, the addition of select new business, and the renewal
rights contract announced in November 2002.
Revenues:
Revenues increased $10.1 million, or 22.8%, to $54.5 million in the third
quarter of 2003, from $44.4 million for the comparable period in 2002.
PRESS RELEASE PAGE 2
Net earned premium increased $8.9 million, or 28.2%, to $40.2 million in the
third quarter of 2003, from $31.3 million during the same period of 2002. This
increase reflects controlled growth in new and existing programs.
Net commissions and fees increased $2.1 million, or 24.8%, to $10.8 million in
the third quarter of 2003, from $8.7 million during the same period of 2002.
This increase includes $3.3 million from new fee-for-service contracts.
Partially offsetting this increase is the elimination of $1.4 million in net
fees relating to a managed program that has been converted to an insured program
in one of the Company's insurance subsidiaries, those fees are now considered
intercompany fees as opposed to managed fees and are eliminated upon financial
consolidation.
Net investment income decreased $554,000, or 14.8%, to $3.2 million in the third
quarter of 2003, from $3.8 million during the same period of 2002. Average
invested assets increased $16.7 million, or 5.8%, to $306.5 million in 2003,
from $289.8 million in 2002. The average investment yield for the third quarter
of 2003 was 4.2% compared to 5.2% in 2002. The current pre-tax book yield is
4.37% and the current pre-tax reinvestment yield is 3.04%. The decrease in
investment yield reflects the decline in the macro level of interest rates and
the tightening of yield spreads relative to U.S. Treasuries.
Expenses:
Incurred losses increased $1.8 million, or 7.0%, to $26.4 million in the third
quarter of 2003, from $24.6 million in the comparable period of 2002. The third
quarter 2003 loss and loss adjustment expense ratio was 70.6%, compared to 83.3%
in the third quarter of 2002. This improvement in the calendar quarter loss
ratio reflects continued rate increases, the elimination of the surplus relief
treaty in 2002, and the stabilization of reserves.
Commenting on the third quarter loss ratio, Mr. Cubbin stated, "Our business
fundamentals continue to improve and prior year reserves have remained stable.
The current accident year results are reflective of year-over-year improvement
and a sound indication of the positive trends in our continuing business."
Salaries and employee benefits for the third quarter of 2003 increased $3.3
million, or 35.5%, to $12.4 million, from $9.1 million in the third quarter of
2002, due primarily to increases in staff related to new fee-for-service
contracts. This increase was also impacted by merit increases and
performance-based variable compensation.
Policy acquisition and other underwriting expenses decreased $949,000, or 13.7%,
to $6.0 million in the third quarter of 2003, from $6.9 million in the
comparable period in 2002. The GAAP expense ratio was 32.9% in the third quarter
of 2003, compared to 36.2% in the third quarter of 2002. Reductions in overall
outside commission expense and the ability to leverage fixed costs had a
favorable impact on the third quarter 2003 results. This favorable impact was
partially offset by an increase in loss-based and other insurance related
assessments.
Other administrative expenses decreased $161,000, or 2.7%, to $5.8 million in
the third quarter of 2003, from $6.0 million in the comparable period in 2002.
PRESS RELEASE PAGE 3
Interest expense decreased $375,000, or 64.4%, to $207,000 in the third quarter
of 2003, from $582,000 in the comparable period in 2002. This reflects the
decrease in the average outstanding debt from $34.6 million in 2002, to $20.0
million in 2003. In addition, a decline in the effective interest rate from 6.7%
in the third quarter of 2002, to 4.1% in the third quarter of 2003 had a
favorable impact on interest expense during the third quarter of 2003. At
September 30, 2003, the Company's debt-to-equity ratio was 16.6%, compared to
18.7% at December 31, 2002.
Year to Date Results:
Net Income:
Net income for the nine months ended September 30, 2003 was $7.9 million, or
$0.27 per diluted share, compared to a net loss of ($859,000), or ($0.05) per
diluted share, for the comparable period in 2002.
Gross written premium increased $49.9 million, or 35.4%, to $190.8 million for
the nine months ended September 30, 2003, from $140.9 million for the comparable
period in 2002.
Revenues:
Revenues decreased $2.6 million, or 1.7%, to $150.2 million for the nine months
ended September 30, 2003, from $152.8 million for the comparable period in 2002.
Net earned premium decreased $10.5 million, or 9.2%, to $103.8 million for the
nine months ended September 30, 2003, from $114.3 million during the same period
of 2002.
Net commissions and fees increased $7.8 million, or 28.4%, to $35.4 million for
the nine months ended September 30, 2003, from $27.6 million during the same
period of 2002.
Expenses:
Incurred losses decreased $12.0 million, or 15.2%, to $67.7 million for the nine
months ended September 30, 2003, from $79.7 million in the comparable period of
2002. The loss and loss adjustment expense ratio for the nine months ended
September 30, 2003 was 70.4%, compared to 73.8% in 2002.
Other expenses decreased $3.9 million, or 5.2%, to $70.8 million for the nine
months ended September 30, 2003, from $74.7 million in the comparable period of
2002. The GAAP expense ratio was 34.7% for the nine months ended September 30,
2003, compared to 36.6% in 2002.
PRESS RELEASE PAGE 4
Other Matters:
Shareholders' equity increased to $154.0 million, or $5.31 per common share, at
September 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 and share repurchases. During 2003, the Company has repurchased and
retired 569,100 shares for a total cost of approximately $1.6 million.
On September 30, 2003, a subsidiary trust of the Company issued $10.0 million of
mandatory redeemable trust preferred securities to a trust formed by an
institutional investor. The Company's trust received a total of $9.7 million in
net proceeds, after the deduction of approximately $300,000 of commissions paid
to the placement agents in the transaction. The securities have a floating rate
equal to the three month LIBOR plus 4.05% and mature in 30 years. The Company
contributed $6.3 million of the proceeds to the surplus of its insurance company
subsidiaries and the remaining balance will be used for general corporate
purposes.
Statutory surplus increased in the quarter to $98.2 million at September 30,
2003 from $90.8 million at June 30, 2003.
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 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
SEPTEMBER 30, DECEMBER 31,
(IN THOUSANDS, EXCEPT PER SHARE DATA) 2003 2002
- ------------------------------------- ---------------- ----------------
BALANCE SHEET DATA
ASSETS
Cash and invested assets $ 314,920 $ 286,050
Premium & agents balances 88,611 71,420
Reinsurance recoverable 197,388 202,213
Deferred policy acquisition costs 18,973 12,140
Prepaid reinsurance premiums 22,323 18,115
Goodwill 28,997 28,997
Other assets 54,533 55,904
------------ ------------
TOTAL ASSETS $ 725,745 $ 674,839
============ ============
LIABILITIES
Loss and loss adjustment expense reserves $ 362,351 $ 374,933
Unearned premium reserves 111,631 68,678
Debt 19,303 32,497
Mandatorily redeemable trust preferred securities 10,000
Other liabilities 68,472 51,336
------------ ------------
TOTAL LIABILITIES 571,757 527,444
STOCKHOLDERS' EQUITY
Common stockholders' equity 153,988 147,395
------------ ------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 725,745 $ 674,839
============ ============
BOOK VALUE PER COMMON SHARE $ 5.31 $ 4.98
BOOK VALUE PER COMMON SHARE EXCLUDING
UNREALIZED GAIN/LOSS ON AVAILABLE FOR SALE
SECURITIES, NET OF DEFERRED TAXES $ 5.01 $ 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 NINE MONTHS
SHARE & PER SHARE DATA) ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
- ------------------------- ------------------- -------------------
SUMMARY DATA 2003 2002 2003 2002
- ------------ ------------ ------------ ------------ ------------
Gross premiums written $ 65,839 $ 40,591 $ 190,848 $ 140,913
Net premiums written 50,568 29,838 142,547 108,464
REVENUES
Net premiums earned $ 40,187 $ 31,340 $ 103,801 $ 114,310
Commissions and fees (net) 10,803 8,654 35,430 27,586
Net investment income 3,197 3,751 10,127 10,380
Net capital gains (losses) 299 626 878 325
Gain on sale of subsidiary - - - 199
------------ ------------ ------------ ------------
TOTAL REVENUES 54,486 44,371 150,236 152,800
EXPENSES
Net losses & loss adjustment expenses (1) 26,357 24,639 67,652 79,735
Salaries & employee benefits 12,372 9,130 36,172 27,978
Interest on notes payable 207 582 656 2,706
Gain on debt reduction - 0 - (359)
Policy acquisition and other underwriting expenses (1) 5,996 6,945 15,745 26,879
Other administrative expenses 5,816 5,977 18,206 17,468
------------ ------------ ------------ ------------
TOTAL EXPENSES 50,748 47,273 138,431 154,407
INCOME BEFORE TAXES 3,738 (2,902) 11,805 (1,607)
Federal income tax expense (benefit) 1,238 (1,011) 3,870 (748)
------------ ------------ ------------ ------------
NET INCOME $ 2,500 $ (1,891) $ 7,935 $ (859)
============ ============ ============ ============
NET OPERATING INCOME (2) $ 2,303 $ (2,304) $ 7,356 $ (1,205)
============ ============ ============ ============
DILUTED EARNINGS PER COMMON SHARE
Net income $ 0.09 $ (0.06) $ 0.27 $ (0.05)
Net operating income $ 0.08 $ (0.08) $ 0.25 $ (0.07)
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 29,169,826 29,785,580 29,287,573 17,477,035
GAAP RATIOS:
Loss & LAE ratio 70.6% 83.3% 70.4% 73.8%
Other underwriting expense ratio 32.9% 36.2% 34.7% 36.6%
------------ ------------ ------------ ------------
GAAP combined ratio 103.5% 119.5% 105.1% 110.4%
============ ============ ============ ============
(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 NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
------------------- -------------------
2003 2002 2003 2002
-------- -------- -------- --------
UNCONSOLIDATED GAAP DATA - RATIO CALCULATION TABLE:
Net earned premium $ 40,187 $ 31,340 $103,801 $114,310
Consolidated net loss and LAE (1) $ 26,357 $ 24,639 $ 67,652 $ 79,735
Intercompany claim fees 2,022 1,474 5,377 4,604
-------- -------- -------- --------
Unconsolidated net loss and LAE $ 28,379 $ 26,113 $ 73,029 $ 84,339
======== ======== ======== ========
GAAP loss and LAE ratio 70.6% 83.3% 70.4% 73.8%
Consolidated policy acquisition and other underwriting expenses (1) $ 5,996 $ 6,945 $ 15,745 $ 26,879
Intercompany administrative and other underwriting fees 7,206 4,409 20,225 14,979
-------- -------- -------- --------
Unconsolidated policy acquisition and other underwriting expenses $ 13,202 $ 11,354 $ 35,970 $ 41,858
======== ======== ======== ========
GAAP other underwriting expense ratio 32.9% 36.2% 34.7% 36.6%
GAAP combined ratio 103.5% 119.5% 105.1% 110.4%
2003 2002 2003 2002
-------- -------- -------- --------
UNCONSOLIDATED GAAP DATA - GROSS COMMISSIONS AND FEES:
Managed programs:
Management fees $ 4,522 $ 3,008 $ 14,710 $ 9,590
Claims fees 3,463 1,877 11,600 5,416
Loss control fees 603 637 1,729 1,972
Reinsurance brokerage 57 65 218 260
-------- -------- -------- --------
Total managed programs 8,645 5,587 28,257 17,238
Agency commissions 3,527 3,113 11,349 10,727
Intersegment revenue (1,369) (46) (4,176) (379)
-------- -------- -------- --------
Net commissions and fees 10,803 8,654 35,430 27,586
Intercompany commissions and fees 9,228 5,883 25,602 19,583
-------- -------- -------- --------
Gross commissions and fees $ 20,031 $ 14,537 $ 61,032 $ 47,169
======== ======== ======== ========
(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 Q402A
----- ----- ----- ----- -----
SUMMARY DATA
Gross premiums written $ 299,104 $ 57,506 $ 42,816 $ 40,591 $ 42,724
Net premiums written 186,083 37,904 40,722 29,838 31,331
INCOME STATEMENT
REVENUES
Net premiums earned $ 163,665 $ 38,657 $ 44,313 $ 31,340 $ 31,073
Commissions and fees (net) 40,675 8,964 9,968 8,654 9,995
Net Investment income 14,228 3,124 3,505 3,751 3,578
Net capital gains (losses) 735 9 (310) 626 341
(Loss) gain on sale of subsidiary (1,097) 199 - - -
-------------------------------------------------------------------------
TOTAL REVENUES 218,206 50,953 57,476 44,371 44,987
EXPENSES
Net losses & loss adj. expenses 125,183 24,458 30,638 24,639 18,999
Policy acquisition and other underwriting expenses 31,662 8,986 10,948 6,945 6,756
Other administrative expenses 22,778 5,418 6,073 5,977 5,548
Salaries & employee benefits 44,179 9,613 9,235 9,130 9,681
Gain on debt reduction - - (359) - -
Interest on notes payable 4,516 1,250 874 582 315
-------------------------------------------------------------------------
TOTAL EXPENSES 228,318 49,725 57,409 47,273 41,299
PRETAX (LOSS) INCOME (10,112) 1,228 67 (2,902) 3,688
Federal income tax (benefit) expense (3,602) 318 (55) (1,011) 1,179
-------------------------------------------------------------------------
NET (LOSS) INCOME $ (6,510) $ 910 $ 122 $ (1,891) $ 2,509
Net realized capital (loss) gain, net of tax (239) 138 (205) 413 225
-------------------------------------------------------------------------
OPERATING (LOSS) INCOME $ (6,271) $ 772 $ 327 $ (2,304) $ 2,284
=========================================================================
Weighted average common shares outstanding 8,512,186 8,517,861 13,902,073 29,785,580 29,644,402
Shares O/S at end of the period 8,512,194 8,512,194 29,787,194 29,744,894 29,591,494
PER SHARE DATA (DILUTED)
Net (loss) income $ (0.76) $ 0.11 $ 0.01 $ (0.06) $ 0.08
Net realized capital (loss) gain, net of tax $ (0.02) $ 0.02 $ (0.01) $ 0.02 $ 0.00
Operating (loss) income $ (0.74) $ 0.09 $ 0.02 $ (0.08) $ 0.08
-------------------------------------------------------------------------
OPERATING RATIO ANALYSIS
GAAP Loss & LAE ratio 81.1% 67.4% 72.6% 83.3% 66.1%
GAAP Expense ratio 36.0% 37.8% 35.8% 36.2% 36.1%
-------------------------------------------------------------------------
GAAP COMBINED RATIO 117.1% 105.2% 108.4% 119.5% 102.2%
=========================================================================
UNCONSOLIDATED GAAP DATA - RATIO CALCULATION TABLE:
Net earned premium $ 163,665 $ 38,657 $ 44,313 $ 31,340 $ 31,073
Consolidated net loss and LAE $ 125,183 $ 24,458 $ 30,638 $ 24,639 $ 18,999
Intercompany claim fees 7,520 1,609 1,521 1,474 1,550
-------------------------------------------------------------------------
Unconsolidated net loss and LAE $ 132,703 $ 26,067 $ 32,159 $ 26,113 $ 20,549
=========================================================================
GAAP NET LOSS AND LAE RATIO 81.1% 67.4% 72.6% 83.3% 66.1%
Consolidated Policy acquisition and other
underwriting expenses $ 31,662 $ 8,986 $ 10,948 $ 6,945 $ 6,756
Intercompany administrative and other
underwriting fees 27,309 5,632 4,938 4,409 4,466
-------------------------------------------------------------------------
Unconsolidated policy acquisition and other
underwriting expenses $ 58,971 $ 14,618 $ 15,886 $ 11,354 $ 11,222
=========================================================================
GAAP EXPENSE RATIO 36.0% 37.8% 35.8% 36.2% 36.1%
GAAP COMBINED RATIO 117.1% 105.2% 108.4% 119.5% 102.2%
-------------------------------------------------------------------------
UNCONSOLIDATED COMMISSIONS & FEES
Managed programs:
Management fees $ 13,318 $ 3,161 $ 3,421 $ 3,008 $ 3,171
Claims fees 8,594 1,734 1,805 1,877 2,660
Loss control fees 2,326 596 739 637 618
Reinsurance brokerage 1,233 72 123 65 49
-------------------------------------------------------------------------
Total managed programs 25,471 5,563 6,088 5,587 6,498
Agency commissions 15,706 3,638 3,976 3,113 3,603
Intersegment commissions and fees (502) (237) (96) (46) (106)
-------------------------------------------------------------------------
Net Commissions and fees 40,675 8,964 9,968 8,654 9,995
Intercompany commissions and fees 34,829 7,241 6,459 5,883 6,016
-------------------------------------------------------------------------
Gross commissions and fees $ 75,504 $ 16,205 $ 16,427 $ 14,537 $ 16,011
=========================================================================
2002A Q103A Q203A Q303A
----- ----- ----- -----
SUMMARY DATA
Gross premiums written $ 183,637 $ 68,789 $ 56,220 $ 65,839
Net premiums written 139,795 51,802 40,177 50,568
INCOME STATEMENT
REVENUES
Net premiums earned $ 145,383 $ 27,384 $ 36,230 $ 40,187
Commissions and fees (net) 37,581 13,356 11,271 10,803
Net Investment income 13,958 3,353 3,577 3,197
Net capital gains (losses) 666 205 374 299
(Loss) gain on sale of subsidiary 199 - - -
----------------------------------------------------------
TOTAL REVENUES 197,787 44,298 51,452 54,486
EXPENSES
Net losses & loss adj. expenses 98,734 17,186 24,109 26,357
Policy acquisition and other underwriting expenses 33,635 3,756 5,993 5,996
Other administrative expenses 23,016 7,084 5,306 5,816
Salaries & employee benefits 37,659 11,932 11,868 12,372
Gain on debt reduction (359) - - -
Interest on notes payable 3,021 237 212 207
----------------------------------------------------------
TOTAL EXPENSES 195,706 40,195 47,488 50,748
PRETAX (LOSS) INCOME 2,081 4,103 3,964 3,738
Federal income tax (benefit) expense 431 1,347 1,285 1,238
----------------------------------------------------------
NET (LOSS) INCOME $ 1,650 $ 2,756 $ 2,679 $ 2,500
Net realized capital (loss) gain, net of tax 571 135 247 197
-----------------------------------------------------------
OPERATING (LOSS) INCOME $ 1,079 $ 2,621 $ 2,432 $ 2,303
===========================================================
Weighted average common shares outstanding 20,543,878 29,510,681 29,261,119 29,169,826
Shares O/S at end of the period 29,591,494 29,363,694 29,022,394 29,022,435
PER SHARE DATA (DILUTED)
Net (loss) income $ 0.08 $ 0.09 $ 0.09 $ 0.09
Net realized capital (loss) gain, net of tax $ 0.03 $ 0.00 $ 0.01 $ 0.01
Operating (loss) income $ 0.05 $ 0.09 $ 0.08 $ 0.08
-----------------------------------------------------------
OPERATING RATIO ANALYSIS
GAAP Loss & LAE ratio 72.1% 69.0% 71.1% 70.6%
GAAP Expense ratio 36.5% 36.5% 35.3% 32.9%
-----------------------------------------------------------
GAAP COMBINED RATIO 108.6% 105.5% 106.4% 103.5%
===========================================================
UNCONSOLIDATED GAAP DATA - RATIO CALCULATION TABLE:
Net earned premium $ 145,383 $ 27,384 $ 36,230 $ 40,187
Consolidated net loss and LAE $ 98,734 $ 17,186 $ 24,109 $ 26,357
Intercompany claim fees 6,154 1,720 1,635 2,022
-----------------------------------------------------------
Unconsolidated net loss and LAE $ 104,888 $ 18,906 $ 25,744 $ 28,379
===========================================================
GAAP NET LOSS AND LAE RATIO 72.1% 69.0% 71.1% 70.6%
Consolidated Policy acquisition and other
underwriting expenses $ 33,635 $ 3,756 $ 5,993 $ 5,996
Intercompany administrative and other
underwriting fees 19,445 6,235 6,784 7,206
-----------------------------------------------------------
Unconsolidated policy acquisition and other
underwriting expenses $ 53,080 $ 9,991 $ 12,777 $ 13,202
===========================================================
GAAP EXPENSE RATIO 36.5% 36.5% 35.3% 32.9%
GAAP COMBINED RATIO 108.6% 105.5% 106.4% 103.5%
-----------------------------------------------------------
UNCONSOLIDATED COMMISSIONS & FEES
Managed programs:
Management fees $ 12,761 $ 5,348 $ 4,840 $ 4,522
Claims fees 8,076 4,382 3,755 3,463
Loss control fees 2,590 577 549 603
Reinsurance brokerage 309 55 106 57
-----------------------------------------------------------
Total managed programs 23,736 10,362 9,250 8,645
Agency commissions 14,330 4,147 3,675 3,527
Intersegment commissions and fees (485) (1,153) (1,654) (1,369)
-----------------------------------------------------------
Net Commissions and fees 37,581 13,356 11,271 10,803
Intercompany commissions and fees 25,599 7,955 8,419 9,228
-----------------------------------------------------------
Gross commissions and fees $ 63,180 $ 21,311 $ 19,690 $ 20,031
===========================================================