U.S.I. Reports Gains; Moves HQ

By Mark E. Ruquet

NU Online News Service, July 31, 12:41 p.m. EDT?San Francisco-based insurance broker U.S.I. Holdings Corp. more than doubled its second quarter net income over last year when it reported a loss.

The company also announced it is in the process of moving its headquarters to a suburb of New York City.

U.S.I. reported net income in the second quarter rose $13 million, going from a loss of $5.6 million to a profit of $7.6 million. Revenues increased 8 percent for the period, or $6 million, going from $80 million to $86 million. Net income per share increased $15.19 a share, from a loss of $15.02 to 17 cents a share.

For the six months, net income rose $37 million, going from a loss of $24.7 million in 2002 to $12.5 million in 2003. Revenues increased 7 percent, or $11.3 million, going from $157.5 million for the six months of 2002 to $169 million.

Among the reasons given for the improved picture, the firm mentioned a reduction in interest expense by reducing its debt from $229.2 million to $142.7 million and a tax benefit.

Speaking on the future performance of the firm for the rest of the year during a conference call with analysts, David L. Eslick, chairman, president and chief executive officer for U.S.I., said, "I have strong expectations for the balance of the year."

During the call, Mr. Eslick also said the firm is making the move to the East Coast because 75 percent of its business dealings are east of the Mississippi. He said it would make contact with accounts and carriers more efficient.

A spokesperson said the company is currently in the process of relocating its offices to Briarcliff Manor, N.Y.

Executives said U.S.I remains committed to its dealings in the West, which are primarily concentrated in California, Oregon, Louisiana, Texas and Washington.

Special Reports /

U.S.I. Reports Gains; Moves HQ

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