Florida-based FPIC Insurance Group Inc. reported that its net income increased to $7.0 million, or $0.68 per diluted share, for the first quarter 2004, up from net income of $2.8 million, or $0.29 per diluted share, for the first quarter 2003. Operating earnings increased to $5.3 million, or $0.51 per diluted share, for the first quarter 2004, up from operating earnings of $2.6 million, or $0.28 per diluted share, for the first quarter 2003.
“Earnings momentum has continued in the first quarter of 2004 with actual results exceeding market expectations,” stated John Byers, president and CEO. “We attribute our strong financial performance over the past nine quarters to our conviction in the main tenets of our business strategy. Our focus on disciplined pricing and underwriting, controlling loss costs through strong claims management and providing outstanding service to our clients has contributed to our success in generating and sustaining profitability. While our insurance segment continues to grow in its core market, our non-insurance segments have consistently contributed positive cash flow to the holding company, and, in the case of our reciprocal management segment, consistent earnings to our organization.”
First Quarter 2004 financial highlights
* Net income of $0.68 per diluted share and operating earnings of $0.51 per diluted share for the quarter
* Net income and operating earnings up 154% and 102%, respectively, quarter over quarter
* Ninth consecutive quarter of positive consolidated operating earnings
* Significant increase quarter over quarter in claims administration and management fees earned by reciprocal management segment
* GAAP combined ratio down 7% from 101% to 94% quarter over quarter
* $10 million capital contribution to insurance segment from internally generated cash
* Increase in assets, gross reserves, shareholders’ equity and statutory surplus for the quarter
* 11% return on average equity for the trailing twelve months
First Quarter 2004 operational highlights
* Reaffirmation of A.M. Best B++ rating
* Continued high policyholder retention levels in core market
* Overall claims results consistent with expectations
* Selective underwriting and strong claims management
* Focus on advancing in core market and products
* Pricing improvements
* Acquisition of significant new business by the insurer managed by reciprocal management segment.
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