State National Companies, Inc. (SNC) has reported 1.31 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $14.10 million, or $0.33 a share in the quarter, compared with $13.91 million, or $0.32 a share for the same period last year.
Revenue during the quarter grew 8.63 percent to $60.07 million from $55.30 million in the previous year period. Net premium earned for the quarter increased 7.41 percent or $2.44 million to $35.36 million.
Total expenses move upBenefits, losses and expenses for the quarter were at $37.94 million, or 107.28 percent of premium earned from $34.13 million or 103.65 percent of premium earned in the last year period. Operating income for the quarter was $22.14 million, compared with $21.17 million in the previous year period. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.13 to $1.21.
Net investment income was at $1.90 million for the quarter, down 4.48 percent or $0.09 million from year-ago period. Meanwhile, income from fees and commission for the quarter declined 6.39 percent or $0.03 million to $0.37 million. The company has recorded a gain on investments of $1.03 million in the quarter compared with a gain of $1.01 million for the previous year period.
Commenting on the results, State National's chairman and chief executive officer, Terry Ledbetter, said, "We are pleased to report another strong quarter and full year of performance that exceeded our guidance and generated a 10 percent increase in both net income and EBITDA in 2016 compared to 2015. These results reflect State National’s proven ability to produce strong cash flow and enhance shareholder value through our capital efficient, fee for service business model.
Liabilities outpace assets growthTotal assets increased 20.45 percent or $488.42 million to $2,876.74 million on Dec. 31, 2016. On the other hand, total liabilities were at $2,580.36 million as on Dec. 31, 2016, up 21.44 percent or $455.50 million from year-ago. Return on assets stood at 0.51 percent in the quarter, down 0.09 from 0.60 percent in the last year period. At the same time, return on equity was at 4.76 percent in the quarter, down 0.53 from 5.28 percent in the last year period.
Investments remain almost stableInvestments were almost stable over the past one year at $335.33 million on Dec. 31, 2016. Meanwhile, yield on investments went down 3 basis points to 0.57 percent in the quarter. Meanwhile, reinsurance recoverables moved up 22.56 percent or $431.20 million over the year to $2,342.86 million on Dec. 31, 2016.
Total debt was almost stable over the past one year at $43.78 million on Dec. 31, 2016. Shareholders equity stood at $296.38 million as on Dec. 31, 2016, up 12.50 percent or $32.92 million from year-ago. As a result, debt to equity ratio went down 2 basis points to 0.15 percent in the quarter from 0.17 percent in the last year period.
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