The Main Street America Group announced today its 2012 financial results included an 11.9 percent return on equity, $978 million net written premium, surplus growth of $71 million and net income of $56.7 million for the fiscal year ended Dec. 31, 2012.
The company squeaked out an underwriting profit, reporting a 99.9 combined ratio for 2012.
The 11.9 percent return on equity was driven by investment returns of $83.2 million. The company’s return on equity in 2011 was 2.7 percent.
Net income of $56.7 million was an 80 percent gain over the prior year ($31.5 million) when, the company said, its results were heavily affected by $63 million in catastrophe losses. In 2012, the company sustained $23 million in catastrophe losses.
The combined ratio of 99.9 was an improvement over the company’s 2011 catastrophe-heavy 106.7 combined ratio.
Commercial lines, which the insurer said accounts for 58 percent of its net written premium, achieved a 92.6 combined ratio and 8.5 percent premium growth. Its surety unit posted a 90.5 combined ratio and 15 percent premium growth. Overall, the company’s four regions achieved a 98.5 combined ratio and 3.9 percent direct premium growth.
Net written premium of $978 million was a 10 percent increase over the prior year ($889 million).
“Our strong capital position will enable us to continue actively seeking profitable growth opportunities in existing states and new states, which will allow us to further spread our risk and increase scale,” said Tom Van Berkel, Main Street America’s chairman and chief executive officer.
The Main Street America Group, based in Jacksonville, Florida, is a super regional insurance company writing business through nine property/casualty insurance carriers: NGM Insurance Co., Old Dominion Insurance Co., Main Street America Assurance Co., MSA Insurance Co., Great Lakes Casualty Insurance Co. Grain Dealers Mutual Insurance Co., Main Street America Protection Insurance Co., Spring Valley Mutual Insurance Co.and Austin Mutual Insurance Co.