Penn-America Reports $2 Million Q1 Operating Income

Penn-America Group, Inc. reported operating income of $2 million or 25 cents per share (basic and diluted) for the first quarter of 2002, compared with operating income of $0.9 million or 12 cents per share for the first quarter of 2001.

The company’s net income also rose to $1.8 million or 23 cents per share (basic and diluted) and included a net realized investment loss of $0.2 million, compared to net income of $1.0 million in the first quarter of 2001. Penn-America also saw its combined ratio for the first quarter fall to 99.9 percent compared with 106.3 in the same period last year.

The announcement stated that “Gross written premiums for core commercial lines (excluding the company’s exited commercial automobile business) increased 32.6 percent to $30.1 million in the first quarter of 2002, compared with $22.7 million for the same period of 2001. Net written premiums increased 30.8 percent to $26.4 million in the current quarter, compared with $20.2 million in the same period of 2001.

Commenting on the results, president and CEO Jon Saltzman stated “Our first quarter 2002 operating results were significantly better than the same period of last year and represented a very favorable excess and surplus lines marketplace, which is characterized by strong price increases and an influx of new business previously written by standard lines carriers. We foresee continued hardening of insurance markets throughout this year and believe that Penn-America is well-positioned to capitalize on this favorable environment.”