South Carolina-based The Seibels Bruce Group Inc., posted a net profit of $1.0 million, or $0.11 per share (basic and diluted) in the second quarter This is compared with a net profit of $1.1 million, or $0.13 per share (basic and diluted), for last year’s second quarter.
“This quarter’s results reflect an investment in infrastructure, which will enable us to grow our businesses both geographically and through the expansion of our product offerings,” Jack Natili, president and CEO, said.
The automobile segment, which consists of the company’s active nonstandard automobile program in North Carolina as well as the runoff operations of its South Carolina motor vehicles, Nashville, South Carolina Reinsurance Facility and premium finance programs, reported overall net income of $106 thousand.
“Though Universal Insurance Company, our North Carolina-based nonstandard automobile operation, experienced significant competitive pricing and incentives pressures this quarter, it still managed to post a profit of $63,000. The company believes these pressures will not be a long-term event,” Natili said.
Also included in the automobile segment’s quarterly results was net income of $288 thousand generated through the company’s North Carolina-based runoff premium finance company, Premium Budget Plan, which is entirely attributable to the recovery of premium notes receivable. “As a result of significant receivables monitoring and collections efforts by both the company’s internal collections department and an unaffiliated management company, Premium Budget Plan’s actual exposure to uncollectable premium notes receivable was substantially less than historically experienced or expected,” Natili commented.
The favorable results reported by Universal Insurance Company and Premium Budget Plan were substantially offset by $245 thousand of losses generated through the other components of the automobile segment, which include the company’s South Carolina motor vehicles, Nashville and South Carolina Reinsurance Facility operations.
The flood segment reported a gain of $141 thousand for the quarter.
“Seibels Bruce’s recent investments in marketing and technology position us to grow our flood insurance premiums in existing territories and to expand our product to new flood-prone territories,” Natili said. “Because of our continued efforts to increase volume, the company is better positioned to benefit from fee- based income for processing claims for the National Flood Insurance Program.”
Commercial operations reported a net profit of $275,000 for the quarter.
“Our commercial lines operation continues to perform profitably,” Natili said. “Our on-going focus is on marketing and improving technology, while maintaining our favorable loss ratio.”
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