Bancinsurance Corporation, a specialty insurance holding company headquartered in Columbus, Ohio reported an 18.8 percent increase in net income for the three months ended Dec. 31, 2001, with net income rising to $845,473 versus $711,693 for the same period last year. Bancinsurance, underwrites specialty insurance principally through its property/casualty insurance subsidiary, Ohio Indemnity Company.
Although the fourth quarter showed an improvement, net income for the twelve months ended Dec. 31, 2001, however, was $3,075,190 or 21.5 percent below the $3,918,357 achieved the previous year.
Net premiums earned rose 54.2 percent to $38,308,738 for 2001 primarily due to the growth in the amount of premium produced in 2001 compared with 2000. Increased automobile lending and premium rate increases also contributed to overall premium growth, but to a lesser degree than volume increases, which included the addition of four large Lender/Dealer accounts.
In addition, Guaranteed Auto Protection (“GAP”) premiums grew from $293,000 for the Year 2000 to $1,646,279, principally due to the transfer of an agent’s book of GAP business. Growth in mandated surety bond premiums on existing Excess of Loss business resulted in a $400,816 increase in premiums earned for the Unemployment Insurance Protection business for the Year 2001.
Other revenue declined 6.5 percent to $5,179,384 for 2001. The most significant factors affecting the year-over-year comparisons were a $900,000 one-time payment received in second quarter 2000 in settlement of a dispute with an unaffiliated party, and the sale of two businesses in 2000 that accounted for $542,760 in fee income the prior year.
Ohio Indemnity’s combined ratio was 92.0 percent of net premiums earned for the Year 2001 compared to 88.1 percent the prior year. The 3.9 percentage point increase is primarily attributable to the higher expense ratio. The company’s combined ratio remains below recent results for the property/casualty industry. Expressed as a percentage of premiums earned, the loss ratio declined to 56.5 percent for the Year 2001 from 60.7 percent a year ago. The expense ratio rose to 35.5 percent for the Year 2001 from 27.4 percent the prior year, principally due to a reclassification of experience rating adjustment expenses during fourth quarter 2000.
Topics Ohio
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