Cincinnati-based The Midland Company, a provider of specialty insurance products and services, announced record results for the first quarter ending March 31, 2006, according to a written statement issued this week.
The company release said that net income for the quarter was a record $22.4 million, or $1.15 per share. This compares to the previous record net income reported in last year’s first quarter of $21.1 million, or $1.08 per share. (All per share amounts are on an after-tax, diluted basis. Prior period amounts have been restated to reflect the impact of stock option expense.)
Net income before realized capital gains was also a record at $20.8 million, or $1.07 per share for the first quarter, compared to the year ago level of $20.6 million, or $1.06 per share. The company said that this non-GAAP financial measure provides a clearer picture of the underlying operating activities than the GAAP measure of net income, as it removes potential issues such as timing of investment gains (or losses) and allows readers to individually assess these components of net income.
John W. Hayden, Midland president and chief executive officer said, “We are pleased to once again deliver record results. We are even more pleased than you might imagine, because these results reflect the broad-based health of our specialty property and casualty insurance platform; we’re growing premiums, maintaining our underwriting discipline and consciously managing operating expenses. It is also worth noting that we posted these outstanding results even as we experienced more volatile weather this spring and absorbed the impact of higher reinsurance costs as compared to last year’s previous record first quarter result. All in all, an extremely gratifying outcome.”
“Top-line growth during the quarter is most encouraging,” Hayden continued. “Property and casualty gross written premiums grew 6.7 percent over last year’s first quarter result. We are delighted to start 2006 with a record bottom line result coupled with solid top line growth. These results extend our string of record first quarter earnings to four years. This track record of profit and growth provides compelling evidence of our deep knowledge and expertise in the specialty insurance marketplace.”
Midland’s wholly owned insurance subsidiary, American Modern Insurance Group, Inc., specializes in providing insurance products and services for niche markets such as manufactured housing, site-built dwelling, motorcycle, watercraft, snowmobile, recreational vehicle and credit life and related products. American Modern’s products and services are offered through diverse distribution channels.
“We continue to experience strong underwriting results across our broad specialty product platform,” Hayden said.
For the first quarter, American Modern’s property and casualty combined ratio (losses and expenses as a percent of earned premium) was 88.8 percent, compared with 88.6 percent a year ago.
“This is a remarkable result given the impact of increased reinsurance costs and a higher level of catastrophe losses than a year ago,” Hayden said. “The cost increase of our base catastrophe reinsurance program reduced first quarter earnings by nine cents per share and catastrophe losses were four cents per share higher than a year ago. Excluding catastrophe losses, American Modern’s combined ratio was a superb 85.9 percent, compared to 86.6 percent in the first quarter of 2005.”
Hayden said the manufactured housing line again contributed solid underwriting results as did most all of the other product lines across our broad specialty offering. The manufactured housing combined ratio was 89.7 for the quarter, compared to 87.3 percent in last year’s first quarter.
Hayden added, “We are also experiencing very positive underwriting trends in several of our other specialty product lines. In particular, our excess and surplus lines book continues to produce very strong underwriting results.”
Hayden said that this book has experienced steady growth over each of the last four years, reaching 7.8 percent of our property and casualty written premiums last year.
On the property/casualty side, the company reported that for the first
time American Modern’s property and casualty gross written premiums grew 6.7 percent to $175.1 million. Manufactured housing gross written premiums increased 4.1 percent over last year to $81.0 million.
Hayden noted, “This result is especially gratifying as manufactured housing premiums emanating from our agency, dealer and manufacturer channels collectively grew 7.2 percent over the prior year, far outpacing the continued decline in our lender channel business. We continue to leverage our deep relationships in the manufactured housing marketplace and remain well positioned to capture future growth opportunities in this market.”
Midland, headquartered in Cincinnati, Ohio, is a provider of specialty insurance products and services through its wholly owned subsidiary, American Modern Insurance Group, which accounts for approximately 95 percent of Midland’s consolidated revenue. institutions and their customers.
For additional information go to www.midlandcompany.com .Source: The Midland Insurance Company
Topics Profit Loss Excess Surplus Ohio Property Property Casualty Manufacturing Casualty
Was this article valuable?
Here are more articles you may enjoy.
Hacker Says AT&T Paid About $400,000 to Erase Sensitive Data 
Beryl’s Remnants Spawned 4 Indiana Tornadoes, Including an EF-3: NWS 
Wall Street Pushes Back After Activists Escalate Protests 
Marsh McLennan Agency to Acquire The Horton Group 
