Premiums, Income Down for Mich.-based North Pointe in Q1

North Pointe Holdings Corporation, Southfield, Mich., reported financial results for the first quarter ended March 31, 2006.

According to the company, gross premiums written amounted to $45.6 million in the first quarter of 2006 vs. $45.8 million a year ago. Commercial lines increased 13 percent in the quarter, while personal lines declined 10 percent compared with the prior year period. Net premiums earned of $20.2 million in the first quarter of 2006 vs. $22.1 million in the first quarter of 2005. Compared with the previous year, net premiums earned for personal lines declined 30 percent, while commercial lines increased slightly. First quarter loss ratio of 46.0 percent vs. 40.4 percent in 2005; contributing factors included higher ceded premiums and increased losses in Midwest homeowners due to storms.

Net income was $1.6 million, or $0.18 per diluted share, as compared with $2.5 million, or $0.52 per diluted share, for the first quarter of 2005. North Pointe said this decrease was primarily driven by increases in reinsurance costs and losses experienced in the company’s Midwest homeowners line resulting from increased storm activity.

Also in the quarter, on Feb. 22, 2006, the company raised $19.3 million, net of issuance costs, through 30-year trust preferred securities. The securities issuance is part of the company’s long-term strategy to expand its operations through organic growth and acquisitions in an opportunistic fashion, while continuing to strengthen the financial position of its underlying insurance company subsidiaries.

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