Specialty Underwriters’ Alliance, Inc. has announced financial results for the fourth quarter and year ended December 31, 2006.
Highlights for the year ended December 31, 2006 include:
* Gross written premium growth of 69.1 percent to $153.2 million;
* Total 2006 revenues of $117.3 million compared with $30.2 million in 2005;
* Net income in 2006 of $8.4 million compared with a net loss of $18.0 million in 2005;
* Earnings per share of $0.55 versus a loss of $1.22 per share for the prior year; and
* A net loss and loss adjustment expense ratio of 56.5 percent for 2006 compared to 71.8 percent for 2005.
Gross written premiums were $46.0 million for the fourth quarter of 2006, an increase of 59.2 percent from $28.9 million in the fourth quarter of 2005. Gross written premiums grew 69.1 percent to $153.2 million in 2006.
Earned premiums for the year ended December 31, 2006 were $110.9 million, an increase of approximately 317 percent from earned premiums of $26.6 million for the year ended December 31, 2005. Earned premiums were $30.7 million for the quarter, up 107.4 percent from last year’s comparable quarter of $14.8 million.
Net loss and loss adjustment expense was $62.7 million for the year ended December 31, 2006, compared to $19.1 million for the year ended December 31, 2005. For the fourth quarter, net loss and loss adjustment expense was $16.0 million, versus $9.9 million for the fourth quarter of 2005.
Total expenses for the year ended December 31, 2006 were $108.6 million, consisting of net loss and loss adjustment expense of $62.7 million, amortization of deferred acquisition expense of $25.6 million and other operating expense of $20.3 million. Other operating expense consisted of $6.1 million of salaries and benefit costs (excluding $4.4 million of salary and benefit costs classified as loss adjustment and acquisition expenses), $4.2 million of professional and consulting fees, $2.6 million of depreciation and amortization and $7.4 million of other expenses.
Total expenses for the year ended December 31, 2005 were $48.2 million. Total expenses consisted of net loss and loss adjustment expense of $19.1 million, amortization of deferred acquisition expense of $6.1 million and other operating expense of $23.0 million. Other operating expense consisted of $5.2 million of salaries and benefit costs (excluding $2.9 million of salary and benefit costs classified as loss adjustment and acquisition expenses), $3.0 million of professional and consulting fees, $1.8 million of depreciation and amortization, $4.2 million of other expenses and service company fees of $8.8 million.
Total expenses for the quarter ended December 31, 2006 were $29.7 million, consisting of net loss and loss adjustment expense of $16.0 million, amortization of deferred acquisition expense of $8.2 million and other operating expense of $5.5 million. Other operating expense consisted of $1.9 million of salaries and benefit costs (excluding $1.2 million of salary and benefit costs classified as loss adjustment and acquisition expenses), $1.1 million of professional and consulting fees, $0.8 million of depreciation and amortization and $1.7 million of other expenses.
Total expenses for the quarter ended December 31, 2005 were $20.4 million. Total expenses consisted of net loss and loss adjustment expense of $9.9 million, amortization of deferred acquisition expense of $4.0 million and other operating expense of $6.5 million. Other operating expense consisted of $1.8 million of salaries and benefit costs (excluding $0.9 million of salary and benefit costs classified as loss adjustment and acquisition expenses), $1.2 million of professional and consulting fees, $0.5 million of depreciation and amortization, $0.8 million of other expenses and service company fees of $2.2 million.
Net income for 2006 was $8.4 million compared to a net loss of $18.0 million for 2005. Diluted earnings per share for 2006 were $0.55 compared to diluted loss per share of $1.22 for 2005. The company reported net income of $2.9 million for the fourth quarter of 2006 compared to a net loss of $4.7 million for the fourth quarter of 2005. Diluted earnings per share were $0.18 for the fourth quarter of 2006 compared to diluted loss per share of $0.32 for the fourth quarter of 2005.
As of December 31, 2006, the company reported investments of $164.1 million, total assets of $363.3 million, total liabilities of $249.3 million and shareholders’ equity of $114.0 million. Book value per share was $7.42 and tangible book value per share was $6.72. As of December 31, 2005, the company reported investments of $103.0 million, total assets of $277.2 million, total liabilities of $176.4 million and shareholders’ equity of $100.8 million. Book value per share for 2005 was $6.76 and tangible book value per share was $6.04.
CourtneySmith, president and CEO concluded, “We are pleased with our results in 2006. Our written premium and profit grew considerably for the year. We maintained our focus on expense control and underwriting and claims discipline. Finally, our infrastructure build-out is nearing completion. This investment in a state- of-the-art system will lead to greater efficiencies, better information management, and tighter underwriting and claims control. Although the insurance industry in general is softening, we are encouraged by the trends in our specific customer classes and expect greater success in 2007 for SUA and its investors.”
Specialty Underwriters’ Alliance, Inc., through its subsidiary SUA Insurance Co.,, is a specialty property and casualty insurance company providing commercial insurance products through exclusive wholesale Partner Agents.
Source: SUA
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