Illinois-based Specialty Underwriters’ Alliance Inc. this week reported a net loss of $8.2 million for the year ended Dec. 31, 2004.
The company reported total assets of $217.2 million, total liabilities of $98.3 million and shareholders’ equity of $119.0 million. The company’s net loss per share was $4.59.
The company successfully completed its initial public offering on
Nov. 23, 2004 and insurance operations were not commenced in 2004.
Concurrent with the IPO, the company acquired Potomac Insurance Company of Illinois and changed its name to SUA Insurance Company.
The net loss represents primarily costs related to the IPO and initial
start-up costs. Among the activities, consultants were engaged to assist in the business selection of agents, a service company was hired to assist the company in reviewing the business of these agents and developing underwriting and pricing guidelines, key processing systems with vendors and consultants were begun to be developed, and offering documents for the IPO were drafted with the assistance of our underwriters and legal counsel.
“Since the IPO, we have been extremely busy,” said Courtney Smith,
president & CEO. “Our number one priority was working with our three partner agents to market our products with their retail agents. We started quoting business for all of our customer classes.
“However, since most agents work 30 to 60 days ahead of renewal dates, we effectively missed January and February business and our progress is slower than expected. However, we have made great strides in building the infrastructure that is necessary for our success. All three of our partner agents in each of the customer groups they represent are producing business.
“We have set up our systems so that we can quote, issue, and handle claims for all of our programs. Over the remainder of this year we will be further enhancing our systems to incorporate a refined front-end web-based approach to business submission.
“We have added key staff to enable us to move forward. Underwriting
management and staff are in place. Our Chief Actuary has been hired. Our claims organization is staffed and ready to handle claims for our customers.”
Specialty Underwriters’ Alliance Inc., through its subsidiary SUA
Insurance Company, is a new property and casualty insurance company that was formed to provide commercial insurance products through exclusive wholesale partner agents that serve niche groups of insureds.
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