Hallmark Financial Services, Inc (HALL) has reported a 24.63 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $5.05 million, or $0.27 a share in the quarter, compared with $6.70 million, or $0.35 a share for the same period last year.
Revenue during the quarter grew 4.20 percent to $97.62 million from $93.68 million in the previous year period. Net premium earned for the quarter went up marginally by 2.70 percent or $2.39 million to $90.80 million. During the quarter, the company has written premium worth $95.68 million on net basis, up 6.41 percent or $5.76 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $90.44 million, or 99.61 percent of premium earned from $83.85 million or 94.85 percent of premium earned in the last year period. Operating income for the quarter was $7.18 million, compared with $9.84 million in the previous year period. Net investment income was at $4.07 million for the quarter, up 16.45 percent or $0.58 million from year-ago period. Meanwhile, income from fees and commission for the quarter jumped 810 percent or $0.49 million to $0.55 million. The company has recorded a gain on investments of $1.10 million in the quarter compared with a loss of $0.34 million for the previous year period.
"Our Specialty Commercial Segment and Standard Commercial Segment continued to perform well both in the quarter and on a year to date basis. Our investments in additional underwriting talent and new products in the Specialty Commercial Segment are beginning to deliver as expected. We continue to find opportunities for profitable growth. As a result, the Specialty Commercial Segment now represents over 70% of our portfolio," said Naveen Anand, president and chief executive officer. "Auto results in our Personal Segment continue to face challenging headwinds. We will continue to address these challenges by increasing rates, culling unprofitable sectors of this business and implementing changes in our claims processes to improve performance," concluded Mr. Anand.
Liabilities outpace assets growth
Total assets increased 8.62 percent or $90.42 million to $1,139.08 million on Sep. 30, 2016. On the other hand, total liabilities were at $868.14 million as on Sep. 30, 2016, up 10.19 percent or $80.28 million from year-ago. Return on assets stood at 0.54 percent in the quarter, down 0.17 from 0.71 percent in the last year period. At the same time, return on equity was at 1.86 percent in the quarter, down 0.71 from 2.57 percent in the last year period.
Investments move up
Investments stood at $649.63 million as on Sep. 30, 2016, up 14.49 percent or $82.23 million from year-ago. Meanwhile, yield on investments went up 1 basis points to 0.63 percent in the quarter. Meanwhile, reinsurance recoverables moved up 19 percent or $34.28 million over the year to $214.74 million on Sep. 30, 2016.
Total debt was at $85.69 million as on Sep. 30, 2016, up 51.12 percent or $28.99 million from year-ago. Shareholders equity stood at $270.94 million as on Sep. 30, 2016, up 3.89 percent or $10.15 million from year-ago. As a result, debt to equity ratio went up 10 basis points to 0.32 percent in the quarter from 0.22 percent in the last year period.
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