Federated National Holding Company (FNHC) has reported 67.02 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $3.14 million, or $0.23 a share in the quarter, compared with $9.54 million, or $0.68 a share for the same period last year.
Revenue during the quarter surged 34.75 percent to $92.92 million from $68.96 million in the previous year period. Net premium earned for the quarter jumped 42.72 percent or $23.50 million to $78.49 million.
Total expenses increase substantially
Benefits, losses and expenses for the quarter were at $87.81 million, or 111.87 percent of premium earned from $53.56 million or 97.39 percent of premium earned in the last year period. Operating income for the quarter was $5.11 million, compared with $15.40 million in the previous year period. Net investment income was at $2.32 million for the quarter, up 13.63 percent or $0.28 million from year-ago period. The company has booked a loss on investments of $0.10 million in the quarter compared with a gain of $0.93 million for the previous year period.
Mr. Michael H. Braun, the Company’s Chief Executive Officer and President, said, “Our results for the quarter include $4.8 million in claims, net of our reinsurance programs, related to the recent tornados that impacted the Florida Panhandle and the State of Louisiana. We continue to expand our business including entering the Texas homeowners market during the first quarter, and continue to focus on the fundamentals, including stringent expense control and providing best in class service to our partner agents and policyholders. Our 5.6% statewide average rate increase that went into effect on our Florida homeowners book of business in August 2016 continues to earn more with each sequential quarter and should be earning out the entire approximately $25 million of additional annual premium later this year. This increase will help offset the higher costs that we have experienced in settling claims over the past few years primarily associated with those that have an assignment of benefits “AOB”. We are in the final stages of securing our hurricane reinsurance program for the upcoming 2017 wind season and intend to purchase a similar program as last year with our approximate 75 reinsurance partners, and again free of alternative type instruments such as catastrophe bonds, at pricing that appears to be more favorable than last year. Our capital position remains strong, and we look forward to continuing our consistent track record of being there for our policyholders when adversity comes their way.”
Total assets stood at $788.16million as on Mar. 31, 2017. On the other hand, total liabilities were at $547.13 million as on Mar. 31, 2017, up 1,879.12 percent or $519.48 million from year-ago.
Return on assets was at 0.41 percent in the quarter. At the same time, return on equity was at 1.30 percent in the quarter, down 7.37 from 8.68 percent in the last year period.
Shareholders equity stood at $241.04 million as on Mar. 31, 2017, up 119.40 percent or $131.18 million from year-ago.
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