Western National Insurance Group today announced their full year financial results through December 31, 2006. These results reflect the pooled financial results of all companies in the group. For year-to-year comparison purposes, 2005 was adjusted to reflect the combined results of the Western National Group and the Farmers Home Group, although the pooling was effective 1/1/2006, with the actual change in management and control being effective 6/5/2006. Significant comparative financial measures include:
• Total Assets – grew from $430.5 million to $493.9 million, an increase of $63.4 million (14.7 pecent); the Farmers Home Group (“FHG”) affiliation added approximately $44 million to this asset increase.
• Net Written Premiums – grew from $207.4 million to $220.3 million, an increase of $12.9 million or 6.2 percent.
• Net Underwriting Gain – totaled $16.5 million (up $5.9 million, or 55.8%); the Loss Ratio was 51.7 percent compared to 52.8 percent in the prior year.
• Net Income After Tax – totaled $23.4 million, up $4.3 million or 22.5%; the Combined Ratio was 91.4 percent compared to 93.2 percent in 2005.
• Surplus – increased from $144.5 million to $190.6 million ($46.1 million or 31.9%); without the $20 million Surplus Note issued in December 2006, the increase is 18 percent.
• Return on average Surplus – was 14.0% (14.8% excluding the Surplus Note).
“2006 was another extraordinary year for Western National, producing a result that once again exceeds that of the prior year, and the industry as a whole,” said Stuart Henderson, president and CEO. “This result was achieved in the face of tornado/hail/wind losses in the third and fourth quarters, and some development in the September 2005 hail losses. The affiliation with FHG grew our assets, our premium, and our geographic reach – in addition to adding talent to our staff and distribution force. However, the transaction also added catastrophe losses and significant, although non-recurring, expenses ($4 million). Those expenses, plus the ongoing cost of the new end-to-end policy administration system, added almost 3 points on our expense ratio (27 percent). We will get back to our targeted 25 percent in 2007. ”
Western National Insurance Group consists of five regional property/ casualty Insurance companies with shared administrative offices in Edina, Minn. Western National Mutual Insurance Company writes personal and commercial lines in Minn., Wis., S.D., N.D., and Iowa.
Source: Western National Insurance Group
Topics Minnesota
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