Fourth Quarter 2012 - Financial Ratios
The company's loss ratio for the fourth quarter of 2012 (defined as loss and loss adjustment expenses related to net premiums earned) was 32.1% compared with 47.1% in the fourth quarter of 2011.
The expense ratio applicable to the fourth quarter of 2012 (defined as policy acquisition and other underwriting expenses plus compensation, employee benefits and other operating expenses related to net premiums earned) was 28.4% compared with 32.5% in the fourth quarter of 2011.
Expressed as the total of all expenses related to net premiums earned, the combined loss and expense ratio to net premiums earned was 60.6% for the fourth quarter of 2012 compared with 79.7% in the same period in 2011.
Full Year 2012 - Financial Results
Income available to common stockholders for 2012 totaled $29.8 million or $3.02 diluted earnings per common share compared with $9.1 million or $1.34 diluted earnings per common share for 2011.
Gross premiums earned in 2012 increased 62.7% to $233.6 million from $143.6 million in 2011. The increase was primarily related to additional premiums in 2012 on the renewal of policies assumed from HomeWise Insurance Company in November 2011 combined with policies assumed from Citizens in November 2012.
Net premiums earned for 2012 increased 79.0% to $157.7 million from $88.1 million in 2011. Premiums ceded for 2012 were 32.5% of the company's gross premiums earned compared with 38.7% during 2011. The ratio decreased because the November 2011 and 2012 assumptions occurred late in Florida's hurricane season, requiring minimal reinsurance coverage for the remainder of the 2012 reinsurance contract year.
Net investment income for 2012 was $980,000 compared with $2.1 million in 2011.
Losses and loss adjustment expenses in 2012 were $66.3 million compared with $48.2 million in the same year-ago period. Losses and loss adjustment expenses in 2012 included approximately $3.5 million related to case reported claims from Tropical Storm Debby and Tropical Storm Isaac, which occurred in June and August 2012.