Meadowbrook Insurance Group’s net income for the fourth quarter of 2004 and for the entire year of 2004 was up. Net income for the entire year of 2004 was up to $14.1 million from net income of $10.1 million for 2003. For the fourth quarter of 2004 the company reported a net income of $2.8 million as compared to a 2003 net income of $2.2 million.
This improvement reflects the growth in earned premium in profitable programs, continued rate increases, growth in agency commissions, overall expense management, and the leveraging of fixed costs.
Meadowbrook President and Chief Executive Officer Robert S. Cubbin stated: “We are pleased by the consistent and improving earnings pattern that we have experienced since our 2002 public offering. The 2004 fourth quarter and annual net income demonstrate our commitment to continued underwriting discipline, our focus on growing our profitable specialty program and fee-for-service businesses, and our on-going plan to leverage fixed costs.”
During the quarter, gross written premium increased $19.9 million, or 31.9%, to $82.3 million, from $62.4 million for the comparable period in 2003. This increase reflects anticipated growth from premium rate increases, the conversion of existing controlled programs to the company’s underwriting subsidiaries, the growth of existing programs, and the implementation of new programs.
Revenues increased $10.3 million, or 17.1%, to $70.9 million for the quarter, from $60.6 million for the comparable period in 2003.
Net earned premium increased $11.3 million, or 23.9%, to $58.7 million for the quarter, from $47.4 million for the comparable period in 2003. This increase reflects the impact of overall rate increases of 13.6% and 8.4% achieved in 2003 and 2004, respectively, and growth in program business.
Incurred losses increased $8.0 million, or 25.8%, to $38.8 million for the quarter, from $30.8 million for the comparable period in 2003. The loss and loss adjustment expense ratio for the quarter was 70.0%, compared to 69.5% for the comparable period in 2003.
Net income for the year increased 39.2% to $14.1 million, compared to net income of $10.1 million for 2003.
Gross written premium increased $60.2 million, or 23.8%, for the year from $253.3 million for 2003.
Revenues increased $59.5 million, or 28.2%, to $270.3 million for the year from $210.8 million for 2003.
Topics Profit Loss
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