Hallmark Financial Services, Inc. (HALL) has reported a 2.16 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $3.99 million, or $0.21 a share in the quarter, compared with $4.07 million, or $0.21 a share for the same period last year.
Revenue during the quarter grew 7.69 percent to $96.95 million from $90.03 million in the previous year period. Net premium earned for the quarter increased 5.81 percent or $4.90 million to $89.22 million. During the quarter, the company has written premium worth $88.52 million on net basis, up 1.02 percent or $0.89 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $91.11 million, or 102.11 percent of premium earned from $84.04 million or 99.66 percent of premium earned in the last year period. Operating income for the quarter was $5.84 million, compared with $5.99 million in the previous year period.
Net investment income was at $4.48 million for the quarter, up 15.47 percent or $0.60 million from year-ago period. Meanwhile, income from fees and commission for the quarter plunged 87.52 percent or $0.50 million to $0.07 million. The company has recorded a gain on investments of $2.06 million in the quarter compared with a loss of $0.23 million for the previous year period.
"The first quarter of fiscal 2017 continued to see elevated losses from our automobile lines of business. However, we are seeing improvement in our personal auto loss experience for the current accident year compared to prior year as our actions to address increased severity and frequency trends in this portfolio are beginning to have the expected impact. In the quarter, our Personal Segment did see some adverse loss reserve development from prior accident years which included a large settlement of a homeowners claim, a line that we exited beginning in late 2014," said Naveen Anand, President and Chief Executive Officer.
Liabilities outpace assets growth
Total assets increased 7.63 percent or $83.17 million to $1,173.22 million on Mar. 31, 2017. On the other hand, total liabilities were at $902.20 million as on Mar. 31, 2017, up 9.46 percent or $77.96 million from year-ago.
Return on assets stood at 0.44 percent in the quarter, down 0.04 from 0.48 percent in the last year period. At the same time, return on equity was at 1.47 percent in the quarter, down 0.06 from 1.53 percent in the last year period.
Investments move up
Investments stood at $663 million as on Mar. 31, 2017, up 7.97 percent or $48.91 million from year-ago. Meanwhile, yield on investments went up 4 basis points to 0.68 percent in the quarter.
Meanwhile, reinsurance recoverables moved up 23.44 percent or $43.85 million over the year to $230.95 million on Mar. 31, 2017.
Total debt was at $85.71 million as on Mar. 31, 2017, down 1.14 percent or $0.99 million from year-ago. Shareholders equity stood at $271.03 million as on Mar. 31, 2017, up 1.96 percent or $5.22 million from year-ago. As a result, debt to equity ratio went down 1 basis points to 0.32 percent in the quarter from 0.33 percent in the last year period.
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