P&C underwriting profit plummets as National General expands in Q1
New York-based specialty personal lines insurance provider National General Holdings reported a fall in profits in the first quarter of 2017 as the combined ratio of its property/casualty operations deteriorated.
For the first quarter, National General reported net income of $34.1 million after $52.7 million in the same period a year ago. The combined ratio deteriorated to 96.8 percent from 92.2 percent over the period.
Net written premium grew 45.7 percent year on year to $340.5 million in the first quarter. The expansion was driven by added premiums from the acquisitions of Direct General, Standard Property and Casualty Insurance Company, as well as organic growth within property/casualty and accident/health segments, according to a company statement.
Barry Karfunkel, National General's president and CEO, stated: "The first quarter saw strong organic growth in our Property and Casualty segment, especially in our auto book, as we continue to take advantage of the current market dislocation. The opportunity that we are seeing in the market is exceptional, and we are excited to be in a position to benefit from it. Our Accident and Health segment had another strong quarter, as the segment has built the scale to be a significant contributor to earnings moving forward. Internally, we remain focused on integrating recent acquisitions and enhancing the capabilities of our state-of-the-art platform."
In property/casualty, gross written premium grew 48.4 percent year on year to $981.7 million in the first quarter. The combined ratio in the segment deteriorated to 98.6 percent in the first quarter from 91.6 percent in the same period a year earlier. The underwriting income fell to $10.4 million from $46.3 million a year ago.
Gross written premium in accident/health grew to $192.0 million from $154.9 million over the period. The combined ratio in the segment improved to 86.1 percent from 94.9 percent over the period. The underwriting income grew to $17.9 million in the first quarter from $5.1 million a year ago.
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