Midland Nets $4 Mil in Q3

The Midland Company, a Cincinnati-based provider of specialty insurance products and services, today reported net income of $4.0 million, or 21 cents per share, for third-quarter 2005, exceeding last year’s third quarter net income of $2.4 million, or 12 cents per share. All per share amounts are on an after-tax, diluted basis.

Net income before realized capital gains for the quarter was $2.0 million, or 10 cents per share compared to the year ago level of $2.2 million, or 11 cents per share.

The impact from catastrophe losses for the quarter was 96 cents per share, including the collective impact of Hurricanes Katrina, Rita and Dennis as well as other third-quarter catastrophe losses.

American Modern Insurance Group, Midland’s property and casualty insurance subsidiary, reported gross written premiums of $185.8 million for the third quarter, compared with $189.6 million in last year’s third quarter.

American Modern’s property and casualty gross written premiums were $533.3 million for the first nine months of the year, compared to $555.7 in the same period last year. Manufactured housing premiums were level at $257.7 million for the first nine months of 2005 and 2004.

M/G Transport Group, Midland’s niche transportation subsidiary, was also affected by Hurricanes Katrina and Rita. M/G Transport has relocated its principal operations office from New Orleans to Baton Rouge, Louisiana.

Midland provides specialty insurance products and services through its wholly owned subsidiary, American Modern Insurance Group, which accounts for approximately 95 percent of Midland’s consolidated revenue. American Modern specializes in writing physical damage insurance and related coverages on manufactured housing and has expanded to other specialty insurance products including coverage for site-built homes, motorcycles, watercraft, snowmobiles, recreational vehicles, physical damage on long-haul trucks, extended service contracts, excess and surplus lines coverages, credit life and related products as well as collateral protection and mortgage fire products sold to financial institutions and their customers. Midland also owns a niche transportation business, M/G Transport Group, which operates a fleet of dry cargo barges for the movement of dry bulk commodities on the inland waterways.