Chicago-based commercial property/casualty program carrier Specialty Underwriters’ Alliance Inc. reported a net loss of $8.2 million for 2004. Total revenues were $300,000, representing investment income earned after the company’s initial public offering. The company had no insurance revenues in 2004. The company reported total assets of $217.2 million, total liabilities of $98.3 million and shareholders’ equity of $119 million. The company’s net loss per share was $4.59.
The company completed its IPO on Nov. 23, 2004, and insurance operations were not commenced in 2004. Concurrent with the IPO, the company acquired Potomac Insurance Company of Illinois and changed its name to SUA Insurance Co.
The net loss represents primarily costs related to the IPO and initial start-up costs. Among the activities, consultants were engaged to assist in the business selection of agents, a service company was hired to assist the company in reviewing the business of these agents and developing underwriting and pricing guidelines, key processing systems with vendors and consultants were begun to be developed, and offering documents for the IPO were drafted with the assistance of our underwriters and legal counsel.
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