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AFFIRMATIVE INSURANCE HOLDINGS REPORTS FIRST QUARTER 2014
ADDISON, Texas, May 15, 2014 (GLOBE NEWSWIRE) Affirmative Insurance Holdings, Inc. (OTC: AFFM), a leading provider of non-standard personal automobile insurance policies, reported consolidated financial results for the first quarter ended March 31, 2014.
|Three Months Ended
|(In millions, except per share data)||2014||2013|
Gross written premium managed
Operating income (loss)
Net income (loss)
Net income (loss) per diluted share
Michael McClure, Chief Executive Officer, stated, We are happy that we had a profitable first quarter, but we are not at the level of profitability that we desire. While our gross premiums managed rose significantly compared to a year ago, our new business policies declined in every state we operate in. Our book of business is transforming to primarily a renewal book of business from primarily a new book of business a year ago. This is important as our renewal policies tend to have a substantially lower loss ratio than new policies. We have also taken significant agent actions in the last six months terminating our business relationship with unprofitable agents. Lastly, we continue to search to find ways to cut expenses on a daily basis. We believe that all of these actions will contribute to increased profitability in the future.
|||Gross written premiums managed represent the gross written premiums on policies we manage through affiliated and unaffiliated underwriting agencies. Our insurance companies may not underwrite a portion of gross written premiums managed. For the first quarter of 2014, gross written premiums managed increased $12.1 million, or 12.6%, compared with the first quarter of 2013. This increase was primarily due to an increase in renewal policies as well as rate increases. The growth in renewal policies was primarily caused by the significant increase in new policies that began in the second half of 2012 and continued through the majority of 2013. The growth in renewal policies is important to our business as those policies historically have a significantly lower loss ratio than new business policies.|
|||Total revenues for the first quarter of 2014 decreased $18.3 million, or 28.7%, compared with the first quarter of 2013. The decrease was due to the reduction in commission and fee income due to the sale of our retail business in September 2013, which was partially offset by the growth in gross premiums managed discussed above.|
The following information was filed by Affirmative Insurance Holdings Inc (AFFMQ) on Thursday, May 15, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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