Federated National Holding Company (FNHC) has reported an 86.84 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $1.39 million, or $0.10 a share in the quarter, compared with $10.59 million, or $0.76 a share for the same period last year.
Revenue during the quarter grew 15.41 percent to $83.79 million from $72.60 million in the previous year period. Net premium earned for the quarter increased 11.43 percent or $7.12 million to $69.40 million.
Total expenses increase substantially
Operating income for the quarter was $1.54 million, compared with $17.62 million in the previous year period.
Net investment income was at $2.16 million for the quarter, up 13.48 percent or $0.26 million from year-ago period. The company has recorded a gain on investments of $1.13 million in the quarter, which was stable when compared with the previous year period.
Mr. Michael H. Braun, the Company’s Chief Executive Officer and President, said, "Our third quarter results continue to demonstrate solid organic growth in both written premiums and policy count, which included the 5.6% FNIC Florida homeowners’ rate increase effective August 1st. The third quarter losses included $4.0 million in claims, net of our quota-share reinsurance, as a result of the impact from Hurricane Hermine, which impacted the State of Florida during the quarter, and continued impact from assignment of benefits which is inflating the costs associated with our everyday homeowners’ claims within the state.
Liabilities outpace assets growth
Total assets increased 18.15 percent or $115.15 million to $749.46 million on Sep. 30, 2016. On the other hand, total liabilities were at $486.10 million as on Sep. 30, 2016, up 23.75 percent or $93.28 million from year-ago.
Return on assets stood at 0.20 percent in the quarter, down 1.47 from 1.68 percent in the last year period. At the same time, return on equity was at 0.53 percent in the quarter, down 3.86 from 4.39 percent in the last year period.
Liability for future policy benefits, unpaid claims and claims adjustment expense was at $127.48 million as on Sep. 30, 2016, up 39.06 percent or $35.81 million from year-ago.
Shareholders equity stood at $263.35 million as on Sep. 30, 2016, up 9.06 percent or $21.87 million from year-ago.
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