1347 Property Insurance Holdings, Inc. (PIH) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $0.25 million, or $ 0.04 a share in the quarter, against a net loss of $1.12 million, or $0.18 a share in the last year period.
Revenue during the quarter went up marginally by 1.37 percent to $8.72 million from $8.60 million in the previous year period. Net premium earned for the quarter went down marginally by 0.60 percent or $0.05 million to $8.17 million.
Total expenses come down
Benefits, losses and expenses for the quarter were at $8.34 million, or 102.01 percent of premium earned from $10.29 million or 125.19 percent of premium earned in the last year period. Operating income for the quarter was $0.38 million, compared with an operating loss of $1.69 million in the previous year period.
Net investment income was at $0.17 million for the quarter, up 46.09 percent or $0.05 million from year-ago period.
Doug Raucy, chief executive officer, stated, "Despite weather events in the quarter, we saw significant improvement over last year's first quarter, due to an overall reduction in catastrophe activity. Shareholders will recall that the first quarter of 2016 was particularly eventful, in that we experienced two separate catastrophe events in both February and March which accounted for almost $4 million in net incurred losses for the quarter. For the first quarter of 2017, our net incurred losses from the single catastrophe event we experienced were substantially lower at approximately $1.7 million. Despite our meaningful improvement over the prior year period, this ratio is still representative of above average levels of storm activity. The Company was not alone in this experience. Across the industry, a dramatic increase in storms caused the first three months of 2017 to be one of the most costly first quarters in several years for U.S. insurers. Despite this headwind, we were able to record positive net income for the quarter demonstrating the resiliency in our structure which is designed to optimize upside in years with more benign weather and minimized downside in more challenging years. We ended the period with over 35,200 policies in force, or an increase of 18.9% from March 31, 2016. Our recent expansion into Texas led our policy growth, as our independent agent network in the state, which now numbers nearly 500, continued to recognize the value we bring to the marketplace."
Liabilities outpace assets growth
Total assets increased 9.54 percent or $8 million to $91.83 million on Mar. 31, 2017. On the other hand, total liabilities were at $45.16 million as on Mar. 31, 2017, up 20.79 percent or $7.77 million from year-ago.
Return on assets was at 0.27 percent in the quarter against a negative 1.33 percent in the last year period. Return on equity was at 0.53 percent in the quarter against a negative 2.40 percent in the last year period.
Investments increase substantially
Investments stood at $35.20 million as on Mar. 31, 2017, up 45.94 percent or $11.08 million from year-ago. Meanwhile, yield on investments was almost stable at 0.48 percent in the quarter, when compared with the last year period.
Shareholders equity was almost stable over the past one year at $46.66 million on Mar. 31, 2017.
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