Citing improved results in its specialty underwriting operations and continued profitability in its agency and fee-based business, alternative risk management specialist Meadowbrook Insurance Group Inc. of Southfield, Mich., reported a first quarter 2002 net income of $910,000, a significant increase over the $153,000 reported for the same period last year.
Net income rose despite an 11.0 percent decline in the company’s revenues from $57.2 million during the first quarter 2001 to $51.0 million in 2002. The $6.2 million reduction in revenues is primarily related to the planned discontinuation of unprofitable programs and business terminated to manage leverage ratios. The first quarter of 2001 results also included a one-time profit sharing fee and revenues from an agency subsidiary, which was sold in July 2001.
Incurred losses decreased to $24.5 million in the first quarter of 2002 from $30.0 million in the comparable period of 2001. The loss and loss adjustment ratio for the first quarter of 2002 was 67.4 percent compared to 78.5 percent in the first quarter of 2001. The improvement in incurred losses reflects the continued run-off of a selected group of unprofitable programs.
Topics Profit Loss Underwriting
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