BIRMINGHAM, Ala. (AP) — Auto insurer Infinity Property and Casualty Corp. said Thursday fourth-quarter earnings fell 17 percent as investment gains slipped lower and the year-earlier quarter benefited from a favorable adjustment on losses and expense reserves.
The company posted net earnings of $28.8 million, or $2.25 per share, compared with $34.7 million, or $2.53 per share a year ago. Pretax favorable adjustment on losses and expense reserves were $20.1 million in the most recent quarter, against $32 million a year earlier.
On an operating basis, which excludes certain one-time losses and gains, the company earned $25.6 million, or $2 per share, down from $31.6 million, or $2.31 per share.
The results beat the $1.24 per share expected by analysts surveyed by FactSet.
Shares rose 31 cents to close at $60.90.
Revenue rose 11 percent to $249.4 million from $224.8 million.
Premiums earned rose to $235.8 million from $209.7 million. Investment income slipped to $10.7 million from $11.5 million and net gains on investments fell to $2.9 million from $3.2 million.
For the year, Infinity net income rose 30 percent to $91.5 million, or $6.95 per share, from $70.6 million, or $5.09 per share. On an operating basis, the company earned $6.12 per share, which beat the analyst estimate of $5.39.
Infinity reported a combined ratio of 86.5 percent. An insurer's combined ratio reflects the company's losses and expenses. A ratio above 100 means that for every premium dollar received, it paid out more than a dollar to cover claims and other expenses. A number below 100 indicated profitability. The company reported a combined ratio of 80 percent a year ago.
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