Specialty Underwriters Report Q3 Loss

Specialty Underwriters’ Alliance, Inc. today reported a net loss of $4.8 million for the quarter ended Sept. 30, 2005. Total revenues were $9.1 million, comprised of earned insurance premiums of $8.2 million and investment income of $0.9 million. The company had no comparable revenues in the third quarter of 2004. Gross written premiums were $28.2 million. During the third quarter, the premium by Partner Agent was as follows: Risk Transfer Holdings, Inc. $9.3 million; AEON Insurance Group, Inc. $4.5 million; American Team Managers $7.4 million; and Specialty Risk Solutions, LLC $7.0 million.

Total expenses were $14.0 million, $6.4 million related to insured losses and loss adjustment expenses and $7.6 million of acquisition costs and general administrative and operating expenses. General administrative expenses totaled $6.2 million, of which $2.2 million was service company fees with Syndicated Services Company, Inc. Other major categories of expense included $1.2 million of salaries and benefit costs (excluding $0.8 million of salary and benefit costs classified as loss adjustment and acquisition expenses), $0.7 million of professional and consulting fees, $0.4 million of depreciation and amortization and $1.7 million of other expenses.

Chicago-based Specialty Underwriters’ Alliance, Inc., through its subsidiary SUA Insurance Company, is a specialty property and casualty insurer providing commercial insurance products through exclusive wholesale partner agents targeting markets like tow trucks, building contractors and professional employee organizations.

Topics Profit Loss Excess Surplus Underwriting