On Feb. 16, FPIC Insurance Group
The quarter's expense ratio increased because of a levy of $4.7 million by the Florida Insurance Guaranty Association related to the bankruptcy of Poe Financial Group. This can later be recouped by FPIC.
- Although net income was flat, operating earnings (excluding realized gains and discontinued operations items) were up 25%.
- For the year, policy retention rates were strong at 94% in Florida and 92% nationwide.
- Favorable loss reserve development shaved 9.2% off the quarter's combined ratio, versus favorable development of 0.4% last year.
- FPIC has a four-star rating in Motley Fool CAPS. Tell us what you think about this company.
(Figures in thousands, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
% Change |
|
---|---|---|---|
$54,871 |
$63,984 |
(14.2%) |
|
Investment Income |
$8,848 |
$6,863 |
28.9% |
Net Income |
$9,431 |
$9,306 |
1.3% |
EPS |
$0.92 |
$0.90 |
2.2% |
Get back to basics with a look at an insurer's income statement.
Ratio Checkup
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Loss Ratio |
56.6% |
70.5% |
(13.90%) |
Expense Ratio |
29.0% |
16.8% |
12.20% |
85.6% |
87.3% |
(1.70%) |
What do these ratios mean?
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
% Change |
---|---|---|---|
Investments |
$865,997 |
$764,079 |
13.3% |
Total Assets |
$1,219,059 |
$1,308,541 |
(6.8%) |
Liabilities |
|||
---|---|---|---|
Gross Loss Expense Reserve |
$642,955 |
$663,466 |
(3.1%) |
Reserve, Net of Reinsurance |
$484,087 |
$359,619 |
34.6% |
Long Term Debt |
$46,083 |
$46,083 |
0.0% |
Learn your way around an insurer's balance sheet.
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Related Foolishness:
- Insurance Industry Basics: Premiums
- Insurance Industry Basics: Combined Ratio
- Insurance Industry Basics: Float
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