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Fortegra Financial Corporation (the "Company") (NYSE: FRF) an insurance services company providing distribution and administration services and insurance-related products, today reported results for the fourth quarter and fiscal year ended December 31, 2010.
"Our fourth quarter and full year 2010 results reflect solid operational performance across all business lines coupled with organic growth and the successful integration of our 2010 acquisitions. With our recent IPO we have improved our financial strength and flexibility and have multiple points of access to capital to allow us to both grow our existing businesses and pursue accretive acquisitions," said Richard S. Kahlbaugh, Chairman and CEO of Fortegra.
Fourth Quarter 2010 Results
Gross revenues increased 5.4% to $50.1 million for the fourth quarter of 2010 compared to $47.6 million for the fourth quarter of 2009. Net revenues, (revenues net of losses, loss adjustments, and commission expenses), decreased 2.9% to $23.8 million for the fourth quarter of 2010 compared to $24.5 million for the fourth quarter of 2009. Net income was $4.5 million, or $0.25 per diluted share, for the quarter ended December 31, 2010 compared to $5.0 million, or $0.29, for the quarter ended December 31, 2009. Adjusted EBITDA decreased 5.6% to $10.2 million for the fourth quarter of 2010 compared to $10.8 million for the fourth quarter of 2009.
Net earned premium revenues increased 10.2% to $28.4 million from $25.8 million for the comparable quarter last year, driven by growth in net written premium from new customers distributing Fortegra's credit insurance and warranty products.
Wholesale brokerage commission and fee revenues increased 4.8% to $5.5 million compared to $5.2 million for the fourth quarter of 2009.
Ceding commission revenue earned under coinsurance agreements increased 8.6% to $6.3 million from $5.8 million for comparable quarter last year, driven principally by increased credit insurance premium production, favorable loss experience across the lines reinsured and realized gains on the sale of investment portfolio assets.