Infinity Posts Higher Quarterly Profit

Infinity Posts Higher Quarterly Profit

NU Online News Service, July 31, 4:08 p.m. EDT? Infinity Property and Casualty Corp. posted a $12.3 million second-quarter profit, higher than the $2.1 million in income posted one year ago. The company attributed this improvement to its cost-cutting effort through consolidations.

"This success is a measure of our commitment to maintain adequate rates and the aggressive steps we have taken to reduce operating expenses through the consolidation of our operations," commented James Gober, chief executive officer at Infinity. "We also continue to benefit from the favorable effects of lower claims frequencies and moderate claim severities," Mr. Gober said.

The company's net written premiums for the quarter declined to $169.8 million- from $207.4 million recorded one year earlier.

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 continues to hold about 40 percent stake in the company. The company primarily provides personal nonstandard auto policies. It posted more than $704.5 in sales last year.