Addison, Texas-based Affirmative Insurance Holdings Inc., a distributor and producer of non-standard personal automobile insurance policies, reported that gross premiums written and total revenues increased during the first quarter of 2010 compared with the same period in 2009.
Total gross premiums written for the three months ended March 31, 2010, increased $4.9 million to $117.1 million, or 4.4 percent, compared with the first quarter of 2009. This increase was primarily due to the expansion of independent agency relationships.
Total revenues for the first quarter, increased to $119.6 million, a 2.4 percent increase over the $116.9 million in the same period of the prior year.
Net premiums earned decreased by $0.5 million, or 0.5 percent, to $92.7 million for the three months ended March 31. This decrease was primarily due to a reduction in net premiums written of $7.0 million, or 5.7 percent, to $114.9 million for the three months ended March 31, 2010. The reduction was largely the result of the termination of the quota-share reinsurance contract for the Louisiana and Alabama business on a cut-off basis effective Jan. 1, 2009, and the resulting return of $10.5 million of ceded unearned premium.
Commission income and fees for the three months ended March 31, increased $3.0 million, or 14.7 percent, compared with the same period a year ago. Results were positively impacted by increases in policyholder fees from growth in premiums written and commissions and fees generated from an expansion of ancillary product sales.
Losses and loss adjustment expenses for the three months ended March 31, 2010 increased $1.3 million, or 1.9 percent, to 76.6 percent of net earned premium (the loss ratio), compared with a loss ratio of 74.7 percent in the first quarter of 2009. The increase was primarily due to a change in mix due to growth in Texas and Michigan, which have higher loss ratios than average.
Loss from continuing operations for the three months ended March 31, 2010, was $3.5 million compared with income of $11.2 million for the three months ended March 1, 2009. The net loss for the quarter was $3.4 million compared with a net income of $10.8 million in the first quarter of 2009.
Source: Affirmative Insurance Holdings
Topics Trends Profit Loss
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