Fla.-Based AmCOMP Reports Second Quarter 2007 Financial Results

From North Palm Beach, Fla., AmCOMP Inc., announced results for the second quarter and six months ended June 30.

Fred R. Lowe, AmCOMP’s chairman, president and chief executive officer said the company increased net income this quarter by 10 percent year-over-year and 37.5 percent over this year’s first quarter.

Additionally, we improved our combined ratio, which measures the overall profitability of our business, to 91.5 percent compared to 94.4 percent for the same period in 2006 and 96.4 percent in the first quarter of 2007, Lowe said.

For the second quarter of 2007, net income was $5.5 million, or $0.35 per diluted share, compared to net income of $5.0 million, or $0.31 per diluted share, for the second quarter of 2006.

Weighted average diluted shares outstanding were 15,776,000 as of June 30 compared to 15,584,000 as of June 30, 2006. Total revenue decreased 17.0 percent to $60.2 million in the second quarter of 2007 versus $72.5 million in the prior year’s second quarter.

Direct premiums written decreased 19.7 percent to $49.5 million for the three months ended June 30 from $61.6 million in the comparable period in 2006. In Florida, our largest market, direct premiums written decreased $13.9 million in the second quarter compared to the corresponding 2006 quarter.

The decrease in Florida premiums is the result of a 15.7 percent rate decrease in 2007, a 6.9 percent decline in in-force policies as of June 30 compared to June 30, 2006, and a reduction in construction-related payrolls. Net investment income increased by $0.7 million, or 16.9 percent for the same three-month period in 2007 over the comparable quarter in 2006.

Source: AmCOMP Inc.

Topics Profit Loss