Cincinnati-based Midland Co. reported a net loss of $1 million, or 6 cents per share, including 10 cents in realized capital gains for the second quarter.
That compares with net income of $5.9 million, or 33 cents per share, in last year’s second quarter, which included 4 cents in realized capital losses. Revenue was $178.6 million compared with $157.5 million in the second quarter of last year. All per-share amounts are on a diluted basis.
Net operating results (net income before realized capital gains and losses and the effects of any changes in accounting principles) for the second quarter reflected a loss of $2.8 million or 16 cents per share, compared with last year’s record profit of $6.6 million, or 37 cents per share.
The company believes that this non-GAAP financial measure provides a clearer picture of core insurance operations than the GAAP measure of net income, as it removes potential issues of timing regarding investment gains and losses and any fluctuations due solely to changes in accounting rules.
Midland CEO John W. Hayden blamed the bad second quarter results on “particularly severe” catastrophic losses.
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