USI Holdings Corp. reported sharp improvement in its net income for the first quarter, helped by $12.4 million in new revenue from acquisitions.
The Briarcliff Manor, N.Y.-based insurance broker on Tuesday reported its net income increased $6.75 million, going from $975,000, or 2 cents a share, to $7.72 million, or 13 cents a share. Revenues increased 12 percent, or $14.6 million, going from $122 million to $13.6 million.
In a 10-Q filing with the Securities and Exchange Commission, USI reported that $12.4 million of the $14.6 million in revenue growth was due to acquisition, and $2.2 million was due to organic growth.
Expenses for the period increased less than $5 million, from $119 million to $123 million. USI said the increased expenses were due to acquisition costs, an increase in the early extinguishment of debt, and increased interest expenses.
Some of these expenses were offset by decreases in acquisition integration, costs related to various insurance industry investigations and implementation of Sarbanes-Oxley accounting procedures.
The company added that organic growth continued to be impacted by the soft market, but saw positive developments in its benefits business.
The company also reported that for the quarter it acquired three books of business and paid a total of $1.76 million in cash.