Florida-based AmCOMP Reports 2nd Quarter 2008 Financial Results
Aug 8, 2008
Insurance Journal--August 8, 2008
North Palm Beach, Florida-based AmCOMP Inc. announced results for the second quarter of 2008.
For the second quarter of 2008, net income was $2.1 million compared to net income of $5.5 million for the second quarter of 2007.
Total revenue decreased 11.2 percent to $53.4 million in the second quarter of 2008 versus $60.2 million in the prior year’s second quarter. For the second quarter of 2008, direct premiums written decreased $10.7 million, or 21.6 percent, to $38.8 million compared to $49.5 million for the comparable period in 2007.
In Florida, the Company’s largest market, direct premiums written decreased $5.5 million in the second quarter compared to the corresponding 2007 quarter. The decrease in Florida premiums is the result of an 18.4 percent rate decrease in 2008, a reduction in construction-related payrolls, while the number of in-force policies as of June 30, 2008 was relatively flat compared to June 30, 2007. Net investment income was $5.1 million, an increase of 2.6 percent, for the same three-month period in 2008 compared to the same quarter in 2007.
During the second quarter of 2008, the Company recognized $6.7 million, net of reinsurance, in favorable loss development from prior years’ loss reserve estimates. This is AmCOMP’s 13th year of favorable loss development for redundancies from prior period loss reserves.
On June 30 the Company’s investment portfolio totaled $434.1 million and had an overall credit rating of AA+.