Philadelphia Consolidated Profit Improves
NU Online News Service, Oct. 27, 2:37 p.m. EST?Philadelphia Consolidated Holding, a Bala Cynwyd, Pa.-based specialty insurer, posted $21 million in profit for its third quarter, improving on the $2.9 million income figure it recorded for the period last year.
The insurer's gross written premiums also showed an improvement, rising 36.1 percent to $286.4 million, compared to $210.5 million posted during the corresponding period last year.
The company?which specializes in designing and underwriting commercial property-casualty insurance for niche clients?also noted its income for the first nine months of 2003 increased, rising 68 percent to $37.8 million, compared to $22.5 million from the same period last year.
Last year's third-quarter earnings, on the other hand, were hurt by $9.75 million, after-tax, reserve strengthening for the residual value line of business.
And just last quarter, the insurer took a reserve charge of some $33 million for its discontinued auto residual value product?a line of business that insures residual values of used vehicles.
But commenting on the company's improved financial numbers for the latest quarter, Chief Executive Officer James Maguire Jr. said, "Gross written premiums were up 36 percent over the same period last year, fueled by continued new business opportunities. In addition, renewal retention levels on accounts meeting our renewal standards exceeded 90 percent for the quarter."
Still, Mr. Maguire also cautioned that price increases have "begun to moderate, signaling more capacity and increased competition."
"But I'm confident in our ability to continue executing at a high level through the balance of this year and into 2004," he said.
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