Infinity Property and Casualty Corporation (IPCC) has reported 82.17 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $2.80 million, or $0.25 a share in the quarter, compared with $15.70 million, or $1.38 a share for the same period last year. Revenue during the quarter went up marginally by 1.53 percent to $378.10 million from $372.40 million in the previous year period. Net premium earned for the quarter went up marginally by 1.06 percent or $3.60 million to $342.20 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $374.90 million, or 109.56 percent of premium earned from $349.60 million or 103.25 percent of premium earned in the last year period. Operating income for the quarter was $3.20 million, compared with $22.80 million in the previous year period. Net investment income was at $8.10 million for the quarter, down 19 percent or $1.90 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 9.58 percent or $2.30 million to $26.30 million. The company has recorded a gain on investments of $1.30 million in the quarter compared with a loss of $0.40 million for the previous year period.
James Gober, Chief executive officer and Chairman of Infinity, commented, “We've continued to see the rising claims trends our industry is experiencing and remain focused on improving our combined ratio. So far this year, we've implemented nearly 13 points of rate in Florida and more than 5 points in California. Though this will take some time to earn its way through our book, we are confident the rate and other underwriting actions we've been taking will improve our profitability."
Operating cash flow drops significantly
Infinity Property and Casualty Corporation has generated cash of $48.20 million from operating activities during the nine month period, down 30.95 percent or $21.60 million, when compared with the last year period. The company has spent $9.10 million cash to meet investing activities during the nine month period as against cash outgo of $52.20 million in the last year period.
The company has spent $28 million cash to carry out financing activities during the nine month period as against cash outgo of $31.50 million in the last year period.
Cash and cash equivalents stood at $73.60 million as on Sep. 30, 2016, up 4.25 percent or $3 million from $70.60 million on Sep. 30, 2015.
Assets, liabilities remain almost stable
Total assets were almost stable over the past one year at $2,460.20 million on Sep. 30, 2016.
Return on assets stood at 0.26 percent in the quarter, down 0.53 from 0.78 percent in the last year period. At the same time, return on equity was at 0.40 percent in the quarter, down 1.85 from 2.25 percent in the last year period.
Investments come down marginally
Investments stood at $1,499.70 million as on Sep. 30, 2016, down 0.71 percent or $10.65 million from year-ago. Meanwhile, yield on investments went down 12 basis points to 0.54 percent in the quarter. Total debt was at $273.50 million as on Sep. 30, 2016, down 0.55 percent or $1.50 million from year-ago. Shareholders equity stood at $702.80 million as on Sep. 30, 2016, up 0.82 percent or $5.70 million from year-ago. As a result, debt to equity ratio went down 1 basis points to 0.39 percent in the quarter from 0.39 percent in the last year period.
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