Southfield, Mich.-based specialty property/casualty insurer Meadowbrook Insurance Group reported second-quarter net income of $2.8 million, or 10 cents per diluted share, compared to net income of $2.7 million, or 9 cents per diluted share, a year ago. Meadowbrook said the figure reflects the growth of earned premium in profitable programs written in the second half of 2003 and the first quarter of 2004, continued rate increases, growth in agency commissions and overall expense management.
During the quarter, gross written premium increased $14.7 million, or 26.1 percent, to $70.9 million, from $56.2 million for the comparable period in 2003. This increase reflects the anticipated growth from premium rate increases, the conversion of existing controlled programs to the company’s underwriting subsidiaries, the growth of existing programs, and the implementation of new programs with proven track records of profitability.
Revenues, meanwhile, increased 27.2 percent to $65.4 million for the second quarter, compared to $51.5 million a year ago.
Net commissions and fees decreased $2.4 million, or 21.5 percent, to $8.8 million for the quarter. This decrease is primarily related to the planned runoff of two limited duration contracts with the State of Missouri. However, intercompany fees, which are eliminated upon consolidation, have increased. Gross commissions and fees, before consolidation, increased $1.2 million, or 6.1 percent, to $20.9 million for the quarter.
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