Thanks Dr.Key Good Stuff, I was so impressed with
8K filing I got in on the 16th and have bought everyday since.
I don't know anything about the Insurance business but do know a great filing when I see it.
Each line was a bombshell in it's own rank.
Listing them as line items helps one see the filing was many filings or PRs wrapped up into one Huge Mother Humper. LOL
1. Achieved profitability on a quarterly basis for the first time in years.
2.Continued progress as a result of actions taken with respect to pricing, underwriting and expense reduction.
3.Benefiting significantly from favorable non-standard personal automobile insurance market conditions primarily in Texas and to a lesser extent in California and Louisiana.
4. Aggressive competition has subsided.
5. Significant gross written premium growth in 2013.
6. Expect favorable conditions to continue and possibly expand to other states.
7. Solved Illinois Department of Insurance reserve requirement issue.
8.Do not anticipate any issues with the reserve requirement going forward.
9. Working with their senior lenders to find a solution for their senior debt maturity in January 2014.
10. Actions they have taken and the changes continue to make in conjunction with the improved market conditions.
11. Should lead to continued improved financial performance.
12. Total gross premiums written for the three months ended June 30, 2013 increased $21.5 million, or 45.7%, compared with the prior year quarter.
13. Total gross premiums written for the six months ended June 30, 2013 increased $29.4 million, or 26.1%, compared with the prior year period.
14. Historically, they assumed premiums from a Texas county mutual insurance company (the county mutual) whereby they assumed 100% of the policies issued by the county mutual for business produced by our owned general agents. The county mutual did not retain any of this business and there were no loss limits other than the underlying policy limits. The assumed reinsurance agreement was terminated on January 1, 2013 on a cut-off basis and the third-party reinsurance company that the Company has had quota-share agreements with since September 2011 is assuming 100% of the business originated through the county mutual. However, they continue to serve as a general agent for this business. Unearned premium of $11.8 million was returned to the Texas county mutual as of January 1, 2013 related to the termination of the reinsurance agreement. If they had included the county mutual business production in the 2013 gross written premiums, the increase for the three and six months ended June 30, 2013 would have been $31.1 million and $61.4 million, or 66.0% and 54.5%, respectively, compared with the prior year. This increase was primarily due to an increase in new business policies generated in Texas and California
15. They believe this growth in Texas and California was due to a number of competitors that had been aggressive on pricing in the past either exiting the marketplace or reducing their writings significantly. They anticipate further gross written premium growth in 2013.
16. They Cut Their Losses
Net losses and loss adjustment expenses for the second quarter increased $11.5 million, or 43.1%, compared with the second quarter of 2012. The percentage of net losses and loss adjustment expense to net premiums earned (the net loss ratio) was 77.0% in the current quarter, compared with 76.5% in the prior year quarter. For the first six months of 2013, net losses and loss adjustment expenses increased $17.4 million, or 33.2%, compared with the first half of 2012
17. Selling, general and administrative expenses (SG&A) increased $1.8 million in the second quarter, or 7.4%, compared with the second quarter of 2012, which was primarily due to increases in distribution costs related to increased earned premium, which were partially offset by decreases in professional services fees and advertising expenses.
18. For the first half of 2013, restructuring and debt modification costs of $2.5 million related to the termination of an outsourced information technology services agreement, senior secured lenders' legal and financial advisor fees and severance costs were incurred, compared with $0.7 million in the first half of 2012. Excluding restructuring and debt modification costs, SG&A expenses increased $4.0 million, or 8.1%, compared with the prior year period, which was primarily due to increases in distribution costs related to increased earned premium, which were partially offset by decreases in advertising expenses, employee compensation and benefits due to decreased headcount and professional fees due to the termination of an outsourced technology services agreement.
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Looks different in line items doesn't it. One can truly understand the rally looking at this, this way.
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Their are tons and tons of consumers who have a hard time getting car insurance because of various reasons and all the large insurance companies have a field day on them and take advantage of them. Affirmative specializes in non standard policy's just for them. A relief for millions of drivers nation wide.
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