NYMAGIC, INC. reported that net earnings from the results of consolidated operations for the quarter ended March 31, 2003 were $1.9 million, or $.20 per diluted share, compared with $2.7 million, or $.29 per diluted share, for the first quarter of 2002.
Chairman and CEO George R. Trumbull, explained that “The reduction of $0.8 million in net earnings is a direct function of the reduction in investment income during this period. We expect that investment income will increase in coming months as we implement our revised investment strategy.”
He noted, however, that in contrast to the gloomy investment picture, “Underwriting results for the three months ended March 31, 2003 were improved. Net premiums earned declined to $21.7 million for the first quarter of 2003 from $27.1 million for the first quarter of 2002, as a result of the Company’s previously announced decision to withdraw from aviation and operations in London.” The net premiums earned from the company’s core lines of business increased by 49% to $20.2 million, from $13.5 million last year.
The company also specified that “Net losses and loss adjustment expenses declined by 32% to $12.0 million from $17.7 million last year, a substantial improvement. Total expenses (which include net losses and loss adjustment expenses) declined by 23% to $20.6 million from $26.9 million last year. The combined loss and expense ratio improved to 95.0% for the first quarter of 2003 compared with 98.4% for the first quarter of 2002. ”
Trumbull indicated: “Our core lines of business (ocean marine, inland marine/fire and other liability) reflect premium growth from both rate and volume increases. Gross and net premium writings from these lines of business increased collectively by 22% and 23%, respectively, in the first quarter of 2003 over the same period of the prior year. While we remain focused on our core lines of business, we are also actively pursuing and seeking complementary books of business. In particular, we are evaluating seasoned, controlled, niche books of business where the underwriting manager has demonstrated an expertise in a particular specialty line of business and we envision writing some of this business during the coming months.”
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