North Pointe Holdings Corporation today reported financial results for the third quarter ended Sept. 30, 2005. Net income in the third quarter increased to $511,000 from a loss of $206,000 in the prior year period. Earnings per basic and diluted share for the third quarter of $0.10 were based on 5.24 million weighted average diluted shares compared with a loss of $0.04 per share for the third quarter of 2004, based on 4.89 million weighted average diluted shares. The Company completed its initial public offering on Sept. 23, 2005.
The company’s loss ratio for the three months ended Sept. 30, 2005 was 53.7 percent as compared to 68.1 percent for the corresponding period in 2004. The primary reasons for this improvement were a lower level of incurred losses due to hurricanes, a general improvement in the Company’s loss ratio in its commercial business lines and the exit of the non-standard automobile line in October 2004.
During the quarter, the company incurred $5.4 million in pre-tax losses, net of reinsurance, as a result of Hurricanes Dennis, Katrina and Rita. This compares to hurricane-related losses of $7.3 million (pre-tax) in the third quarter of 2004.
The Company expects losses incurred, including reinstatement premiums, to be in the range of $8.0 to $9.5 million pre-tax, due to Hurricane Wilma.
Southfield, Mich.-based North Pointe Holdings, founded in 1986, is a property and casualty insurer that markets both specialty commercial and personal insurance products focusing on owner-operated businesses.
Topics Profit Loss Hurricane
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