Infinity Reports Quarterly Profit
NU Online News Service, Oct. 29, 4:11 p.m. EST?Infinity Property and Casualty Corp. posted a $15 million third-quarter net profit, compared to net earnings of $15.3 million for the same period in 2002.
The insurer's management emphasized that earnings without net realized gains have shown an improvement.
"We continue to see strong underwriting results. If you exclude realized gains to get a better feel for the operating income, then we actually showed an improvement over last year," said Roger Smith, chief financial officer at Infinity Property and Casualty.
"We had quite a bit of realized gains last year, $5.4 million pre-tax. So if you exclude realized gains, the operating income was $11.7 million one year ago, increasing to $14.5 million for the third quarter this year," he told National Underwriter.
Mr. Smith also pointed out that Infinity's combined ratio improved, from 93.5 one year ago to 92 this third quarter.
"And net earned premiums were $163.9 million for the 2002 third quarter, versus $172.8 million for this year's third quarter. That's an increase of about five percent. Results for the third quarter show continued improvement on both an operating earnings and underwriting basis," Mr. Smith said.
Based in Birmingham, Ala., Infinity is the second-largest writer of policies for high-risk drivers in the United States, behind Progressive Corp. in Mayfield Village, Ohio.
Infinity went public on the NASDAQ Market in February. Prior to its initial public offering, it was owned by Cincinnati-based American Financial Group, which still holds about 38 percent stake in the company. The company primarily provides personal nonstandard auto policies. It posted more than $700 million in sales last year.
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