Cheaper reinsurance boosts profits at National Security Group
The results of National Security Group (NSG), a property/casualty insurer based in Alabama, were boosted by lower claims, better investment returns and cheaper reinsurance in the second quarter of 2016.
The company’s net income increased by over 90 percent to $1.3 million in the second quarter of this year, compared with $623,000 in the same period last year.
This increase was attributed to a $573,000 decrease in policyholder benefits and settlement expenses which dropped to $8.9 million in the second quarter of 2016.
This decline in claims was primarily the result of a 23.3 percent decrease in reported fire losses in its property/casualty segment. This was partially offset by increases in reported non-cat wind and hail claims. Moderate increases in net premium earned and investment income also contributed to the increase in net income for the quarter.
NSG reported a rise in its gross written premiums to $18.5 million in the second quarter of 2016, compared with $18.2 million in the same period of last year.
The company’s net premiums earned increased slightly to £15.2 million in the second quarter of 2016, compared with $14.9 million during the same period of 2015. NSG attributed this to a “moderate decline in catastrophe reinsurance costs” and a 1.4 percent increase in direct premium.
Its net written premiums decreased to $16.8 million in the second quarter of 2016, compared with $17 million in the same period of 2015.
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