EMC Insurance Group Inc. (EMCI) has reported a 53.57 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $6.80 million, or $0.32 a share in the quarter, compared with $14.65 million, or $0.70 a share for the same period last year. On an adjusted basis, earnings per share were at $0.34 for the quarter compared with $0.74 in the same period last year.
Revenue during the quarter went up marginally by 0.08 percent to $155.08 million from $154.96 million in the previous year period. Net premium earned for the quarter went up marginally by 1.23 percent or $1.75 million to $144.49 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $146.02 million, or 101.06 percent of premium earned from $132.99 million or 93.17 percent of premium earned in the last year period. Operating income for the quarter was $9.07 million, compared with $21.96 million in the previous year period. However, the adjusted operating income for the quarter stood at $7.21 million compared to $15.36 million in the prior year period. At the same time, adjusted operating margin contracted 526 basis points in the quarter to 4.65 percent from 9.91 percent in the last year period.
For financial year 2017, EMC Insurance Group Inc. forecasts diluted earnings per share to be in the range of $1.35 to $1.55 on adjusted basis.
Property and casualty insurance division has booked premium of $144.49 million on net basis during the quarter, up 1.23 percent or $1.75 million from year-ago period.
Net investment income was at $11.01 million for the quarter, down 10 percent or $1.22 million from year-ago period.
"Like many in the industry, first quarter results were significantly impacted by higher than anticipated catastrophe and storm losses," stated president and chief executive officer Bruce G. Kelley. "While no recoveries have been made under the property and casualty insurance segment’s intercompany reinsurance treaty covering the first half of the year, we are further into the retention amount than anticipated, which means second quarter catastrophe and storm losses will likely be capped at approximately the same level as the catastrophe and storm losses incurred in the first quarter. Based on this expectation, we are reaffirming our earnings guidance for the year."
Assets outpace liabilities growth
Total assets increased 2.01 percent or $31.37 million to $1,591.61 million on Mar. 31, 2017. On the other hand, total liabilities were at $1,027.34 million as on Mar. 31, 2017, up 1.80 percent or $18.16 million from year-ago. Return on assets stood at 0.43 percent in the quarter, down 0.51 from 0.94 percent in the last year period. At the same time, return on equity was at 1.21 percent in the quarter, down 1.45 from 2.66 percent in the last year period.
Investments stood at $1,470.21 million as on Mar. 31, 2017.
Shareholders equity stood at $564.27 million as on Mar. 31, 2017, up 2.40 percent or $13.21 million from year-ago.
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