Chicago-based Specialty Underwriters’ Alliance Inc. reported that although net income was down in the first quarter of 2009 compared to the same period a year ago, gross written premiums rose to $29 million compared to $24.1 million for the first quarter of 2008.
Net income for the first quarter of 2009 was $1 million, compared to $3.5 million for the comparable quarter in 2008; earnings per share was $0.06 compared to $0.22 one year ago.
“Regarding our business operations, although the insurance marketplace continues to be competitive, we see some signs of hardening as demonstrated by the reinsurance rate increases for renewals this year,” stated Specialty Underwriters’ President and CEO Courtney Smith. “Despite difficult overall economic and industry conditions affecting our results, we were able to grow our comparable quarterly premiums by over 20 percent due mainly to the writing of several new large alternative staffing program accounts and a significant number of new e-comp. accounts.”
Smith said the company’s book of business is more diversified than it was a year ago. Smith also noted that while “overall market conditions deteriorated in the first quarter, [the company’s] conservative approach to managing our investment portfolio continues to provide a strong balance sheet.”
The company has experienced increased operating expenses, Smith said, that were mainly attributable to expenses “relating to the proxy contest waged by Hallmark Financial Services Inc.”
Fort Worth, Texas-based Hallmark has been seeking to gain control of SUA. In early April, Hallmark announced that it had nominated independent director candidates to replace three members of SUA’s board of directors and has launched a Web site for SUA stockholders, www.SUAItownhall.com.
Specialty Underwriters’ Alliance Inc., through its subsidiary SUA Insurance Company, is a specialty property and casualty insurance company providing commercial insurance products through exclusive wholesale Partner Agents that serve niche groups of insureds. These targeted customers require highly specialized knowledge due to their unique risk characteristics. Examples include tow trucks, professional employer organizations, public entities and contractors.
Source: Specialty Underwriters’ Alliance Inc., www.suainsurance.com
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