National Atlantic Holdings Corporation has reported net income of $4.373 million or $0.78 per share (diluted), in the first quarter 2005 compared with $2.971 million, or $0.53 per share (diluted), in the same period for 2004.
Included in net income are net realized investment gains, net of tax, of $264,668, or $0.05 per share (diluted), in the first quarter of 2005 compared with net realized investment gains, net of tax, of $444,100, or $0.08 per share (diluted), for the same period in 2004.
Direct written premiums increased by 29.7% to $60.3 million for the quarter ended March 31, 2005 compared to $46.5 million for the same quarter of last year. Net written premiums were $56.8 million in the first quarter 2005, a 28.8% increase over first quarter 2004 net premiums written of $44.1 million. Net earned premiums were $47.4 million in the first quarter of 2005 compared to $39.1 million in the comparable quarter of 2004, an increase of 21.2%
The company’s combined ratio (GAAP basis) was 90.3% in the first quarter of 2005 compared with 100.4% in the same period for 2004. During the first quarter of 2005, positive development on prior period loss reserves was approximately $0.5 million for the period ending March 31, 2005 because actual loss experience, especially for no-fault coverage has lower than expected due to reduced claims frequency.
Investment income for the three months ended March 31, 2005 increased by $1.1 million, or 91.7%, to $2.3 million from $1.2 million in 2004. The increase was due primarily to an increase in invested assets to $259.5 million from $186.0 million for the comparable 2004 period. The increase in invested assets was primarily due to the increase in net written premiums during the period.
NAHC, through its insurance subsidiary, Proformance Insurance Company, is a provider of personal lines property and casualty insurance, predominately automobile insurance, in the State of New Jersey. NAHC distributes its products exclusively through licensed independent agents, many of whom have an equity participation in NAHC’s common stock and are referred to as “partner agents.”
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