Florida’s Largest, Common P&C, Sheds Insurance policies, Exhibits Improved Backside Line – Insurance coverage JournalAugust 18, 2022
Amid rising considerations concerning the well being of Florida’s property insurers, the state’s largest provider posted a considerably combined bag of monetary outcomes for the primary quarter of 2022. However the firm stated it has taken huge steps to cut back publicity and bills.
Common Insurance coverage Holdings, the guardian firm of Common Property & Casualty Insurance coverage Co., stated in its newest monetary info that its mixed ratio had dropped sharply in comparison with the top of 2021, to 97.9%. However the ratio was up barely in comparison with this time final yr, the publicly traded firm reported.
Web revenue for Q1 2022 was $17 million, down from $26 million within the first quarter final yr, however a lot stronger than the $48 million loss reported on the finish of final yr. Whole income elevated from the primary quarter of 2021, however was down a bit from the ultimate quarter of 2021.
“We reported a 16.9% annualized ROE regardless of the difficult exterior surroundings, which is a testomony to the energy and resilience of our enterprise,” CEO Stephen Donaghy stated in a press release posted Thursday.
Web funding income for the primary quarter was $4 million, up barely from the top of 2021 and considerably increased than within the first quarter final yr.
Direct premiums written fell barely from This fall 2021 however had been up 8.5% from this time final yr, the monetary report reveals. That considerably outpaced a 6.1% decline in insurance policies in pressure “as significant price will increase benefited premium volumes,” the CEO stated.
Donaghy stated that along with elevating charges, the corporate has shed insurance policies in “much less worthwhile geographies,” tightened underwriting standards and renegotiated companies’ fee charges. The variety of insurance policies in pressure has fallen considerably, from 976,250 in March 2021 to 916,745 on the finish of March 2022.
Common remains to be barely forward of the state-backed Residents Property Insurance coverage Corp. within the variety of insurance policies it holds – however most likely not for lengthy. On the finish of March this yr, Residents reported some 817,926 insurance policies in pressure, however officers have stated that quantity is predicted to prime 1 million by yr’s finish.
“Given our sturdy capital place, the profitability of our enterprise and the steps we proceed to take to enhance outcomes, we consider we stand out favorably as reinsurers more and more differentiate amongst cedants within the present market,” Donaghy stated.
Matters Florida Property Casualty
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