Philadelphia Consolidated Q1 Income Rises 89%
NU Online News Service, April 23, 10:53 a.m. EDT?Philadelphia Consolidated Holding Corp. reported strong underwriting helped first-quarter net profit increase 89.3 percent to $25 million from $13.2 million reported a year earlier. [@@]
The Bala Cynwyd, Pa.-headquartered property-casualty insurer reported $252.4 million in gross written premiums, an increase of 30.6 percent from $193.3 million reported one year earlier. The company's combined ratio improved to 85.1, down from 92.2 one year ago.
Chief executive James Maguire, commenting on results, said the 30 percent rise in gross written premiums resulted from high renewal rates, premium increases and unit-count improvements on new business.
Net earned premiums for the quarter were reported at $168.78 million, higher than the $148.36 million reported a year earlier. Net investment income was reported at $9.97 million, up slightly from $9.81 million one year ago. The overall, total revenue was $181.92 million for the first quarter, higher than $157.70 million reported a year earlier.
Mr. Maguire also noted that this profitable growth does impact his company's capital needs and Philadelphia Consolidated had placed a 10 percent quota-share reinsurance agreement covering its entire commercial and specialty lines of business.
"We believe reinsurance remains the best means of maintaining acceptable operating leverage with respect to our capital levels," Mr. Maguire said.
Philadelphia Consolidated specializes in designing and underwriting commercial p-c insurance for niche clients such as rental car companies, not-for-profits, health and fitness centers, and day-care facilities. Specialty lines cover such professionals as lawyers, accountants and insurance agents. It also offers mobile-homeowners policies, mostly in Florida.
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