On Feb. 16, Philadelphia Consolidated Holdings
- Net income for the fourth quarter skyrocketed 155.4% to $73.8 million, from $28.9 million -- although last quarter's results included a $26 million goodwill impairment charge.
- The quarter's results were boosted by $13.2 million in favorable reserve development.
- The combined ratio fell to 70.9% from 74.2%, thanks to a 310-basis point drop in the loss ratio and a 20-basis point decrease in the expense ratio.
- Book value per share increased nearly 40% year over year, to $16.48 per share at the end of 2006.
(Figures in thousands, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
$307,596 |
$261,986 |
17.4% |
|
Investment Income |
$26,127 |
$17,866 |
46.2% |
Net Income |
$73,781 |
$28,887 |
155.4% |
EPS |
$1.00 |
$0.39 |
156.4% |
Get back to basics with a look at an insurer's income statement.
Ratio Checkup
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Loss Ratio |
42.6% |
45.8% |
(3.14%) |
Expense Ratio |
28.2% |
28.4% |
(0.18%) |
70.9% |
74.2% |
(3.32%) |
What do these ratios mean?
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Investments |
$2,433,642 |
$1,934,985 |
25.8% |
Cash and Equivalent |
$108,671 |
$74,385 |
46.1% |
Liabilities |
|||
---|---|---|---|
$1,283,238 |
$1,245,763 |
3.0% |
|
Unearned Premiums |
$759,358 |
$631,468 |
20.3% |
Learn your way around an insurer's balance sheet.
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Fool contributor Emil Lee is an analyst and a disciple of value investing. He doesn't own shares in any of the companies mentioned above. Emil appreciates your comments, concerns, and complaints. The Motley Fool has a disclosure policy.