Michigan-based Meadowbrook Insurance Group Inc., a provider of alternative risk management services to agents, brokers, and insureds, announced its fourth quarter and year end financial results.
Revenues increased 33.7 percent to $56.4 million in the fourth quarter 2001, from $42.2 million during the same period in 2000. The company cited reduced reinsurance purchases and increased premiums retained on risk-sharing programs in explaining the increase. Increases were offset by the sale of an agency subsidiary in 2001.
The company’s incurred losses fell to $30.2 million in the fourth quarter 2001 from $42.8 million in the same period the prior year. The loss and loss adjustment ratio for the fourth quarter 2001 was 75.8 percent compared to 162.8 percent for the fourth quarter 2000. The run-off of discontinued programs, rate increases, and impacts of reserve strengthening helped to reduce these losses.
Other fourth quarter expenses fell 11.4 percent to $25.7 million, from $29 million in 2000.
The company’s GAAP expense ratio was 37.3 percent, compared to 48.4 percent in 2000. Reduced administrative and technology costs, expense management initiatives, reduced personnel costs, and reduced expenses from discontinued programs were cited as helping reduce these expenses.
Topics Profit Loss
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