Birmingham, Ala.-based Infinity Property and Casualty Corp., a national provider of personal automobile insurance, reported results for the three and nine months ended Sept. 30.
Stronger than expected underwriting results resulted in an increase in Infinity’s operating earnings during the third quarter, the insurer reported. Net earnings declined during the third quarter primarily as a result of modest other-than-temporary impairment charges on fixed income securities.
Gross written premiums declined 6 percent and 11.7 percent during the third quarter and first nine months of 2008, respectively, as compared with the same periods in 2007 primarily from a decline in gross written premiums in California, Connecticut, Florida and Georgia. Partially offsetting premium declines in these states was premium growth in Illinois, Nevada, and Texas.
Earnings and underwriting income for the three and nine months ended Sept. 30, included $1.3 million $13.5 million respectively, of favorable development on prior accident period loss.
Catastrophe losses during the third quarter and first nine months of 2008 totaled $1.3 million and $1.8 million respectively, including losses in the third quarter of $1.1 million from Hurricane Ike and $200,000 from Tropical Storm Fay.
As a result of better than expected underwriting results in the third quarter of 2008, Infinity is increasing its operating earnings guidance to a range of $3.40 to $3.60 per diluted share.
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