Mercer Insurance Group, Inc. (NASDAQ: MIGP) reported its operating
results today for the quarter ended March 31, 2010.
Highlights:
-- Net income of $0.54 per diluted share versus $0.46 per diluted share in
the prior year's quarter,
-- Operating income of $0.49 per diluted share versus $0.51 per diluted
share in the prior year's quarter,
-- A GAAP combined ratio of 98.1% versus 98.4% in the prior year's quarter,
-- Book value per share of $26.20,
-- Increase in quarterly shareholder dividend to $0.10 per share, a 33%
increase.
Andrew R. Speaker, President and CEO, noted, "We are pleased,
under the circumstances, that our operating income is comparable to
last year's quarter, despite having incurred winter storm losses
during the quarter. In recent years we have managed our east coast
book to minimize our catastrophic weather exposures, and, noting
that our winter storm losses are proportionately less than some of
our competitors, we are pleased with the result of our efforts to
manage these exposures."
Speaker continued, "We are also pleased to report that the Board
of Directors has authorized an increase in our quarterly dividend
to $0.10 per share. While we carefully balance our capital levels
to support our current business, future opportunities and our
credit ratings, we also seek to provide a good return for our
shareholders."
Speaker concluded, "Underwriting discipline is the touchstone of
our Company's culture, and we will continue to demonstrate that
discipline in every aspect of our business. We are confident that
this will best position the Company to achieve profitable results,
increase book value and leave us positioned well for changing
market and economic conditions. Our book value has grown to $26.20
per share, and we will continue our strong focus on steady growth
in this book value."
Financial Summary (in thousands, except per share data)
Three Months Ended
March 31,
(unaudited)
----------------------
2010 2009
------ ------
Total revenue $ 39,169 $ 39,192
Net premiums written 32,000 31,856
Net premiums earned 34,735 35,582
Net investment income 3,506 3,603
Net realized gains (losses) on investments 472 (481)
Net income 3,472 2,891
Earnings per share - Basic $ 0.55 $ 0.47
Earnings per share - Diluted $ 0.54 $ 0.46
Combined ratio 98.1% 98.4%
Book value per share $ 26.20 $ 22.93
Reconciliation of non-GAAP financial
measures:
Net income $ 3,472 $ 2,891
Net realized gains (losses) on
investments, net of tax 312 (317)
Net operating income 3,160 3,208
Operating earnings per share - Basic $ 0.50 $ 0.52
Operating earnings per share - Diluted $ 0.49 $ 0.51
In the quarter ended March 31, 2010, the Company reported GAAP
net income under U.S. generally accepted accounting principles
(GAAP) of $3.5 million, or $0.54 per diluted share. This result
compares to net income of $2.9 million, or $0.46 per diluted share,
for the same quarter of the previous year. Although current year
net income was not burdened by the number of fire and property
losses reflected in net income of the first quarter of 2009, first
quarter 2010 net income was adversely affected by losses related to
winter storms in March in the after tax amount of $800,000, or
$0.12 per diluted share. These 2010 property losses are largely
those associated with catastrophe number 96, which was the
northeaster storm which struck the mid-Atlantic region in
mid-March. Included in the current year's net income are net
realized gains of $472,000, as compared to net realized losses of
$481,000 for the quarter ended March 31, 2009. These net realized
gains include $8,000 in other than temporary impairments in the
current year, and $535,000 of such impairments in net realized
losses in the first quarter of 2009. Operating income for the
quarter ended March 31, 2010, was consistent with that of the prior
year at $3.2 million.
The Board of Directors of Mercer Insurance Group, Inc. has
approved an increased dividend of $0.10 per share, to be paid on
June 28, 2010 to shareholders of record on June 11, 2010.
Operating income and operating earnings per share are non-GAAP
financial measures that we present because we believe they enhance
an investor's understanding of Mercer's core operating performance.
Operating income and operating earnings per share consist of net
earnings adjusted for after-tax net realized investment gains and
losses.
Mercer Insurance Group, Inc. offers commercial and personal
lines of insurance to businesses and individuals principally in
seven states through its insurance subsidiaries: Mercer Insurance
Company, Mercer Insurance Company of New Jersey, Inc., Financial
Pacific Insurance Company and Franklin Insurance Company. Mercer
Insurance Group trades under the symbol "MIGP" and has an "A"
(Excellent) rating from A.M. Best Company, Inc.
Certain of the statements in this press release (other than
statements of historical facts) are forward-looking statements.
Such forward-looking statements include estimates and assumptions
related to economic, competitive and legislative developments.
These forward-looking statements are subject to change and
uncertainty that are, in many instances, beyond the Company's
control and have been made based upon management's expectations and
beliefs concerning future developments and their potential effect
on Mercer Insurance Group, Inc. There can be no assurance that
future developments will be in accordance with management's
expectations so that the effect of future developments on Mercer
Insurance Group, Inc. will be those anticipated by management.
Actual financial results including premium growth and underwriting
results could differ materially from those anticipated by Mercer
Insurance Group, Inc. depending on the outcome of certain factors,
which may include changes in property and casualty loss trends and
reserves; catastrophe losses; the insurance product pricing
environment; changes in applicable law; government regulation and
changes therein that may impede the ability to charge adequate
rates; changes in accounting principles; performance of the
financial markets; fluctuations in interest rates; availability and
price of reinsurance; and the status of the labor markets in which
the company operates.
Consolidated Statements of Income
(in thousands, except per share and share data)
Quarter Ended
March 31,
2010 2009
(unaudited) (unaudited)
Net premiums earned $ 34,735 $ 35,582
Investment income,
net of investment expenses 3,506 3,603
Realized investment gains (losses) 472 (481)
Other revenue 456 488
Total revenue 39,169 39,192
Losses and loss adjustment expenses 21,913 22,199
Amortization of deferred policy
acquisition costs 9,385 9,905
Other expenses 2,764 2,891
Interest expense 351 352
Total expenses 34,413 35,347
Income before income taxes 4,756 3,845
Income taxes 1,284 954
Net income $ 3,472 $ 2,891
Net income per common share:
Basic $ 0.55 $ 0.47
Diluted $ 0.54 $ 0.46
Weighted average number of
shares outstanding:
Basic 6,259,228 6,180,227
Diluted 6,413,489 6,233,044
Supplementary Financial Data
Net written premiums $ 32,000 $ 31,856
Book value per common share $ 26.20 $ 22.93
GAAP combined ratio 98.1% 98.4%
Consolidated Balance Sheet
(in thousands, except share amounts)
March 31, December 31,
2010 2009
(unaudited)
ASSETS
Investments, at fair value:
Fixed income securities, available-for sale $ 384,044 $ 365,464
Equity securities, at fair value 10,229 9,484
Total investments 394,273 374,948
Cash and cash equivalents 26,742 39,927
Premiums receivable 36,966 36,405
Reinsurance receivable 77,002 79,599
Prepaid reinsurance premiums 5,959 5,871
Deferred policy acquisition costs 18,261 18,876
Accrued investment income 3,821 4,287
Property and equipment, net 21,141 21,516
Deferred income taxes 5,052 4,941
Goodwill 5,416 5,416
Other assets 4,215 3,568
Total assets $ 598,848 $ 595,354
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Losses and loss adjustment expenses $ 311,414 $ 311,348
Unearned premiums 73,955 76,601
Accounts payable and accrued expenses 9,753 12,150
Other reinsurance balances 16,296 12,386
Trust preferred securities 15,597 15,592
Advances under line of credit 3,000 3,000
Other liabilities 4,632 4,069
Total liabilities $ 434,647 $ 435,146
Stockholders' Equity:
Preferred Stock, no par value, authorized - -
5,000,000 shares, no shares issued and
outstanding
Common stock, no par value, - -
authorized 15,000,000 shares, issued
7,074,333 shares, outstanding
6,898,936 and 6,883,498 shares
Additional paid-in capital $ 72,289 $ 72,139
Accumulated other comprehensive income 12,906 12,220
Retained earnings 89,104 86,101
Unearned ESOP shares (1,724) (1,878)
Treasury Stock, 632,076 shares (8,374) (8,374)
Total stockholders' equity 164,201 160,208
Total liabilities and stockholders' equity $ 598,848 $ 595,354
Company Contacts: Andrew R. Speaker President & CEO Mercer
Insurance Group, Inc. (609) 737-0426 David B. Merclean Senior Vice
President & CFO Mercer Insurance Group, Inc. (609) 737-0426
Mercer Insurance (NASDAQ:MIGP)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Mercer Insurance (NASDAQ:MIGP)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024
