PAULA Financial Announces First Quarter Results

May 3, 2000 9:00 a.m. CDT

California-based PAULA Financial, a specialty underwriter and distributor of commercial insurance products, reported an operating loss of ($0.16) per share for the first quarter of 2000 compared to operating earnings of $0.21 per share for the same period last year.

When the impact of realized investment gains and losses and the impact of gains and losses of unconsolidated affiliates were included, net loss for the first quarter of 2000 was ($0.18) per share compared to net income of $0.22 per share for the same period last year.

Gross premiums written increased to $33.5 million for the quarter ended March 31, 2000 compared to $29.5 million for the first quarter of 1999. Gross written premiums in California alone increased 26 percent, and non-risk commission income was up 71 percent in the first quarter of 2000.

In addition, the company’s insurance subsidiaries’ GAAP net combined ratio rose to 112.9 percent in the first quarter of 2000 compared to 103.8 percent for the first quarter of 1999.

Through its subsidiary PAULA Insurance Company, PAULA Financial is one of the largest underwriters specializing in workers’ compensation products and services for the agribusiness industry.