Loading, Please Wait...
SUNRISE, Fla., Feb. 27, 2019 (GLOBE NEWSWIRE) -- FedNat Holding Company (the “Company”) (Nasdaq: FNHC) today reported results for the three and twelve months ended December 31, 2018.
Q4 2018 highlights (as measured against the same three-month period last year, except where noted):
Mr. Michael H. Braun, the Company’s Chief Executive Officer, said “In 2018, we continued to make excellent progress in strengthening our underwriting profitability, controlling our expense structure and positioning our core Homeowners business for growth and further diversification. We generated a solid increase in earnings for the year despite the fourth quarter impact of severe weather events, including Hurricane Michael, a major storm that affected many of our policy holders in Florida’s Panhandle area. Our thoughts go out to all those individuals that were impacted by the recent weather events and have deployed the appropriate resources to help our policyholders in their time of need. Excluding the impact of net retained losses related to weather and the continued wind down of our non-core auto and commercial general liability business lines, our fourth quarter performance was strong. Our core Homeowners line continued to show improvement in non-catastrophe underwriting profitability and a decrease in our attritional loss ratio. We continue to expand our non-Florida homeowners business as gross premiums earned grew 49% compared to last year’s fourth quarter. In looking at the full year performance, our prudent underwriting and exposure management resulted in a significant cost savings from our reinsurance program along with other initiatives that resulted in greater operating efficiencies. The progress we made on our growth objectives position us for long term, sustainable earnings growth. “
Mr. Braun added, “Adding to our excitement about our growth opportunity is the definitive agreement to acquire the insurance operations of 1347 Property Insurance Holding, Inc., announced earlier this week. This acquisition is a great strategic and financial fit for FedNat, accelerating our geographic diversification while delivering immediate earnings accretion and attractive cost synergies. We believe that the combination of these quality homeowners insurers will help enhance value for FedNat shareholders.”
Consolidated
Revenues
Expenses
Line of Business Results
2018 vs. 2017 Full Year Results
Subsequent Event/Maison Acquisition
As previously announced on February 25th, 2019, the Company has executed a definitive agreement for the acquisition of the insurance operations of 1347 Property Insurance Holdings, Inc. ("PIH"). The purchase price is $51.0 million, which includes $25.5 million in cash and $25.5 million in shares of the Company’s common stock. Additionally, in connection with the acquisition, the Company announced an offering of $100 million of Senior Unsecured Fixed Rate Notes due 2029 at an interest rate of 7.5%. The cash from the offering will be used to purchase PIH, retire the full $45.0 million of outstanding debt (thereby lowering our overall cost of borrowing) and other general corporate purposes.
The acquisition is expected to be immediately accretive to earnings per share and return on equity as well, in part due to significant reinsurance and operating synergies inherent therein. See the Company's Form 8-K filing dated February 25, 2019 for further information.
The Company applied for and was approved by the Florida Office of Insurance regulation for a state-wide average rate increase of 4.6% for Florida homeowners multiple-peril insurance policies, which is expected to become effective for new and renewal policies on April 20, 2019.
Conference Call Information
The Company will hold an investor conference call at 9:00 AM (ET) Thursday, February 28, 2019. The Company’s CEO, Michael Braun and its CFO, Ronald Jordan will discuss the financial results and review the outlook for the Company. Messrs. Braun and Jordan invite interested parties to participate in the conference call.
Listeners interested in participating in the Q&A session may access the conference call as follows:
Toll-Free Dial-in: (877) 303-6913
Conference ID: 5898179
A live webcast of the call will be available online via the “Presentations and Events” section of the Company’s website at FedNat.com or interested parties can click on the following link:
http://www.fednat.com/investor-relations/investor-presentations/
Please call at least five minutes in advance to ensure that you are connected prior to the presentation. A webcast replay of the conference call will be available shortly after the live webcast is completed and may be accessed via the Company’s website.
About the Company
The Company is an insurance holding company that controls substantially all aspects of the insurance underwriting, distribution and claims processes through our subsidiaries and contractual relationships with independent agents and general agents. The Company, through our wholly owned subsidiaries, are authorized to underwrite, and/or place homeowners multi-peril, federal flood and other lines of insurance in Florida and other states. We market, distribute and service our own and third-party insurers’ products and other services through a network of independent and general agents.
The Company’s supplemental line of business information is designed to afford users greater transparency into our results. The “Homeowners” line of business consists of our homeowners and fire property and casualty insurance business, which currently operates in Florida, Alabama, Texas, Louisiana and South Carolina. The “Automobile” line of business consists of our nonstandard personal automobile insurance business which currently operates in Georgia, Texas, Alabama, and Florida, pending our withdrawal. The “Other” line of business primarily consists of our commercial general liability (pending our withdrawal) and federal flood businesses, along with corporate and investment operations.
Forward-Looking Statements /Safe Harbor Statements
Safe harbor statement under the Private Securities Litigation Reform Act of 1995:
Statements that are not historical fact are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. Without limiting the generality of the foregoing, words such as “anticipate,” “believe,” “budget,” “contemplate,” “continue,” “could,” “envision,” “estimate,” “expect,” “guidance,” “indicate,” “intend,” “may,” “might,” “plan,” “possibly,” “potential,” “predict,” “probably,” “pro-forma,” “project,” “seek,” “should,” “target,” or “will” or the negative or other variations thereof, and similar words or phrases or comparable terminology, are intended to identify forward-looking statements.
Forward-looking statements might also include, but are not limited to, one or more of the following:
The risks and uncertainties include, without limitation, risks and uncertainties related to estimates, assumptions and projections generally; the nature of the Company’s business; the adequacy of its reserves for losses and loss adjustment expense; claims experience; weather conditions (including the severity and frequency of storms, hurricanes, tornadoes and hail) and other catastrophic losses; reinsurance costs and the ability of reinsurers to indemnify the Company; raising additional capital and our compliance with minimum capital and surplus requirements; potential assessments that support property and casualty insurance pools and associations; the effectiveness of internal financial controls; the effectiveness of our underwriting, pricing and related loss limitation methods; changes in loss trends, including as a result of insureds’ assignment of benefits; court decisions and trends in litigation; our potential failure to pay claims accurately; ability to obtain regulatory approval applications for requested rate increases, or to underwrite in additional jurisdictions, and the timing thereof; the impact that the results of our subsidiaries’ operations may have on our results of operations; inflation and other changes in economic conditions (including changes in interest rates and financial markets); pricing competition and other initiatives by competitors; legislative and regulatory developments; the outcome of litigation pending against the Company, and any settlement thereof; dependence on investment income and the composition of the Company’s investment portfolio; insurance agents; ratings by industry services; the reliability and security of our information technology systems; reliance on key personnel; acts of war and terrorist activities; and other matters described from time to time by the Company in releases and publications, and in periodic reports and other documents filed with the United States Securities and Exchange Commission.
In addition, investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including claims and litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when a reserve is established for a contingency. Reported results may therefore appear to be volatile in certain accounting periods.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We do not undertake any obligation to update publicly or revise any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Contacts
Michael H. Braun, CEO (954) 308-1322,
Ronald Jordan, CFO (954) 308-1363,
or Erick A. Fernandez, CAO (954) 308-1341
FEDNAT HOLDING COMPANY AND SUBSIDIARIES
Consolidated Statement of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenues: | ||||||||||||||||
Net premiums earned | $ | 91,098 | $ | 87,503 | $ | 355,257 | $ | 333,481 | ||||||||
Net investment income | 3,402 | 2,773 | 12,460 | 10,254 | ||||||||||||
Net realized and unrealized investment gains (losses) | (5,060 | ) | (96 | ) | (4,144 | ) | 8,548 | |||||||||
Direct written policy fees | 2,681 | 3,556 | 13,366 | 17,173 | ||||||||||||
Other income | 4,321 | 8,016 | 19,154 | 22,206 | ||||||||||||
Total revenues | 96,442 | 101,752 | 396,093 | 391,662 | ||||||||||||
| ||||||||||||||||
Costs and expenses: | ||||||||||||||||
Losses and loss adjustment expenses | 72,318 | 58,874 | 228,416 | 247,557 | ||||||||||||
Commissions and other underwriting expenses | 29,642 | 27,984 | 121,109 | 114,867 | ||||||||||||
General and administrative expenses | 5,838 | 5,226 | 22,183 | 19,963 | ||||||||||||
Interest expense | 1,038 | 101 | 4,177 | 348 | ||||||||||||
Total costs and expenses | 108,836 | 92,185 | 375,885 | 382,735 | ||||||||||||
| ||||||||||||||||
Income (loss) before income taxes | (12,394 | ) | 9,567 | 20,208 | 8,927 | |||||||||||
Income tax expense (benefit) | (3,089 | ) | 3,943 | 5,498 | 3,585 | |||||||||||
Net income (loss) | (9,305 | ) | 5,624 | 14,710 | 5,342 | |||||||||||
Net income (loss) attributable to non-controlling interest | — | (672 | ) | (218 | ) | (2,647 | ) | |||||||||
Net income (loss) attributable to FedNat Holding Company shareholders | $ | (9,305 | ) | $ | 6,296 | $ | 14,928 | $ | 7,989 | |||||||
| ||||||||||||||||
Net Income (Loss) Per Common Share | ||||||||||||||||
Basic | $ | (0.73 | ) | $ | 0.48 | $ | 1.17 | $ | 0.61 | |||||||
Diluted | $ | (0.73 | ) | $ | 0.48 | $ | 1.16 | $ | 0.60 | |||||||
| ||||||||||||||||
Weighted Average Number of Shares of Common Stock Outstanding | ||||||||||||||||
Basic | 12,777 | 13,131 | 12,775 | 13,170 | ||||||||||||
Diluted | 12,777 | 13,197 | 12,867 | 13,250 | ||||||||||||
| ||||||||||||||||
Dividends Declared Per Common Share | $ | 0.08 | $ | 0.08 | $ | 0.24 | $ | 0.32 |
FEDNAT HOLDING COMPANY AND SUBSIDIARIES
Selected Operating Metrics
(Unaudited)
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| (In thousands) | |||||||||||||||
Gross premiums written: | ||||||||||||||||
Homeowners Florida | $ | 102,834 | $ | 108,106 | $ | 458,652 | $ | 482,039 | ||||||||
Homeowners non-Florida | 21,941 | 14,393 | 81,037 | 54,716 | ||||||||||||
Automobile | (25 | ) | 6,416 | 8,603 | 43,505 | |||||||||||
Commercial general liability | (135 | ) | 2,280 | 5,384 | 11,048 | |||||||||||
Federal flood | 2,998 | 2,697 | 14,088 | 12,109 | ||||||||||||
Total gross premiums written | $ | 127,613 | $ | 133,892 | $ | 567,764 | $ | 603,417 |
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| (In thousands) | |||||||||||||||
Gross premiums earned: | ||||||||||||||||
Homeowners Florida | $ | 116,614 | $ | 122,188 | $ | 473,121 | $ | 481,541 | ||||||||
Homeowners non-Florida | 19,499 | 13,125 | 66,571 | 43,983 | ||||||||||||
Automobile | 526 | 10,747 | 18,402 | 54,679 | ||||||||||||
Commercial general liability | 1,650 | 2,877 | 8,794 | 12,216 | ||||||||||||
Federal flood | 3,492 | 2,936 | 13,132 | 10,774 | ||||||||||||
Total gross premiums earned | $ | 141,781 | $ | 151,873 | $ | 580,020 | $ | 603,193 |
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| (In thousands) | |||||||||||||||
Net premiums earned: | ||||||||||||||||
Homeowners | $ | 89,390 | $ | 80,435 | $ | 342,247 | $ | 298,255 | ||||||||
Automobile | 132 | 4,339 | 4,658 | 23,642 | ||||||||||||
Commercial general liability | 1,576 | 2,729 | 8,352 | 11,584 | ||||||||||||
Total net premiums earned | $ | 91,098 | $ | 87,503 | $ | 355,257 | $ | 333,481 |
FEDNAT HOLDING COMPANY AND SUBSIDIARIES
Selected Operating Metrics (continued)
(Unaudited)
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| (In thousands) | |||||||||||||||
Commissions and other underwriting expenses: | ||||||||||||||||
Homeowners Florida | $ | 13,897 | $ | 11,740 | $ | 56,693 | $ | 57,151 | ||||||||
All others | 5,460 | 4,653 | 19,948 | 20,135 | ||||||||||||
Ceding commissions | (3,966 | ) | (1,216 | ) | (12,743 | ) | (16,299 | ) | ||||||||
Total commissions | 15,391 | 15,177 | 63,898 | 60,987 | ||||||||||||
Automobile | 93 | 1,194 | 4,322 | 7,847 | ||||||||||||
Homeowners non-Florida | 793 | 240 | 2,147 | 1,223 | ||||||||||||
Total fees | 886 | 1,434 | 6,469 | 9,070 | ||||||||||||
Salaries and wages | 2,997 | 3,160 | 14,279 | 14,521 | ||||||||||||
Other underwriting expenses | 10,368 | 8,213 | 36,463 | 30,289 | ||||||||||||
Total commissions and other underwriting expenses | $ | 29,642 | $ | 27,984 | $ | 121,109 | $ | 114,867 |
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net loss ratio | 79.4 | % | 67.3 | % | 64.3 | % | 74.2 | % | ||||||||
Net expense ratio | 38.9 | % | 37.9 | % | 40.3 | % | 40.5 | % | ||||||||
Combined ratio | 118.3 | % | 105.2 | % | 104.6 | % | 114.7 | % | ||||||||
Gross loss ratio | 277.6 | % | 77.4 | % | 149.8 | % | 108.3 | % | ||||||||
Gross expense ratio | 27.8 | % | 25.0 | % | 26.9 | % | 25.5 | % | ||||||||
Book value per share excluding non-controlling interest | $ | 16.84 | $ | 16.29 | $ | 16.84 | $ | 16.29 |
FEDNAT HOLDING COMPANY AND SUBSIDIARIES
Consolidated Balance Sheet
(Unaudited)
| December 31, | |||||||
| 2018 | 2017 | ||||||
ASSETS | (In thousands) | |||||||
Investments: | ||||||||
Debt securities, available-for-sale, at fair value (amortized cost of $433,664 and $422,300, respectively) | $ | 428,641 | $ | 423,238 | ||||
Debt securities, held-to-maturity, at amortized cost | 5,126 | 5,349 | ||||||
Equity securities, at fair value | 17,758 | 15,434 | ||||||
Total investments (including $0 and $26,284 related to the VIE, respectively) | 451,525 | 444,021 | ||||||
Cash and cash equivalents (including $0 and $14,211 related to the VIE, respectively) | 64,423 | 86,228 | ||||||
Prepaid reinsurance premiums | 108,577 | 135,492 | ||||||
Premiums receivable, net of allowance of $77 and $70, respectively (including $0 and $1,184 related to the VIE, respectively) | 29,791 | 46,393 | ||||||
Reinsurance recoverable, net | 211,424 | 124,601 | ||||||
Deferred acquisition costs, net | 39,436 | 40,893 | ||||||
Income taxes, net | 5,220 | 9,817 | ||||||
Property and equipment, net | 4,819 | 4,025 | ||||||
Other assets (including $0 and $2,322 related to the VIE, respectively) | 10,156 | 13,403 | ||||||
Total assets | $ | 925,371 | $ | 904,873 | ||||
| ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities | ||||||||
Loss and loss adjustment expense reserves | $ | 296,230 | $ | 230,515 | ||||
Unearned premiums | 281,992 | 294,423 | ||||||
Reinsurance payable | 63,599 | 71,944 | ||||||
Long-term debt, net of deferred financing costs of $596 and $749, respectively | 44,404 | 49,251 | ||||||
Deferred revenue | 4,585 | 6,222 | ||||||
Other liabilities | 19,302 | 25,059 | ||||||
Total liabilities | 710,112 | 677,414 | ||||||
Shareholders' Equity | ||||||||
Preferred stock, $0.01 par value: 1,000,000 shares authorized | — | — | ||||||
Common stock, $0.01 par value: 25,000,000 shares authorized; 12,784,444 and 12,988,247 shares issued and outstanding, respectively | 128 | 130 | ||||||
Additional paid-in capital | 141,128 | 139,728 | ||||||
Accumulated other comprehensive income (loss) | (3,750 | ) | 1,770 | |||||
Retained earnings | 77,753 | 70,009 | ||||||
Total shareholders’ equity attributable to FedNat Holding Company shareholders | 215,259 | 211,637 | ||||||
Non-controlling interest | — | 15,822 | ||||||
Total shareholders’ equity | 215,259 | 227,459 | ||||||
Total liabilities and shareholders' equity | $ | 925,371 | $ | 904,873 |
FEDNAT HOLDING COMPANY AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Statements of Operations and Operating Metrics by Line of Business
(Unaudited)
| Three Months Ended December 31, | ||||||||||||||||||||||||||||||
| 2018 | 2017 | |||||||||||||||||||||||||||||
| Homeowners | Automobile | Other | Consolidated | Homeowners | Automobile | Other | Consolidated | |||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||
Gross premiums written | $ | 124,775 | $ | (25 | ) | $ | 2,863 | $ | 127,613 | $ | 122,499 | $ | 6,416 | $ | 4,977 | $ | 133,892 | ||||||||||||||
Gross premiums earned | 136,113 | 526 | 5,142 | 141,781 | 135,313 | 10,747 | 5,813 | 151,873 | |||||||||||||||||||||||
Ceded premiums | (46,723 | ) | (394 | ) | (3,566 | ) | (50,683 | ) | (54,878 | ) | (6,408 | ) | (3,084 | ) | (64,370 | ) | |||||||||||||||
Net premiums earned | 89,390 | 132 | 1,576 | 91,098 | 80,435 | 4,339 | 2,729 | 87,503 | |||||||||||||||||||||||
Net investment income | — | — | 3,402 | 3,402 | — | — | 2,773 | 2,773 | |||||||||||||||||||||||
Net realized and unrealized investment gains (losses) | — | — | (5,060 | ) | (5,060 | ) | — | — | (96 | ) | (96 | ) | |||||||||||||||||||
Direct written policy fees | 2,506 | 93 | 82 | 2,681 | 2,214 | 1,194 | 148 | 3,556 | |||||||||||||||||||||||
Other income | 3,461 | 64 | 796 | 4,321 | 4,957 | 616 | 2,443 | 8,016 | |||||||||||||||||||||||
Total revenues | 95,357 | 289 | 796 | 96,442 | 87,606 | 6,149 | 7,997 | 101,752 | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||
Losses and loss adjustment expenses | 64,634 | 4,840 | 2,844 | 72,318 | 47,345 | 7,633 | 3,896 | 58,874 | |||||||||||||||||||||||
Commissions and other underwriting expenses | 27,819 | 730 | 1,093 | 29,642 | 25,038 | 1,885 | 1,061 | 27,984 | |||||||||||||||||||||||
General and administrative expenses | 4,718 | 50 | 1,070 | 5,838 | 4,115 | 150 | 961 | 5,226 | |||||||||||||||||||||||
Interest expense | — | — | 1,038 | 1,038 | 101 | — | — | 101 | |||||||||||||||||||||||
Total costs and expenses | 97,171 | 5,620 | 6,045 | 108,836 | 76,599 | 9,668 | 5,918 | 92,185 | |||||||||||||||||||||||
Income (loss) before income taxes | (1,814 | ) | (5,331 | ) | (5,249 | ) | (12,394 | ) | 11,007 | (3,519 | ) | 2,079 | 9,567 | ||||||||||||||||||
Income tax expense (benefit) | (460 | ) | (1,351 | ) | (1,278 | ) | (3,089 | ) | 4,246 | (1,358 | ) | 1,055 | 3,943 | ||||||||||||||||||
Net income (loss) | (1,354 | ) | (3,980 | ) | (3,971 | ) | (9,305 | ) | 6,761 | (2,161 | ) | 1,024 | 5,624 | ||||||||||||||||||
Net income (loss) attributable to non-controlling interest | — | — | — | — | (672 | ) | — | — | (672 | ) | |||||||||||||||||||||
Net income (loss) attributable to FNHC shareholders | $ | (1,354 | ) | $ | (3,980 | ) | $ | (3,971 | ) | $ | (9,305 | ) | $ | 7,433 | $ | (2,161 | ) | $ | 1,024 | $ | 6,296 | ||||||||||
Ratios to net premiums earned: | |||||||||||||||||||||||||||||||
Net loss ratio | 72.3 | % | 3,666.7 | % | 180.5 | % | 79.4 | % | 58.9 | % | 175.9 | % | 142.8 | % | 67.3 | % | |||||||||||||||
Net expense ratio | 36.4 | % | 38.9 | % | 36.2 | % | 37.9 | % | |||||||||||||||||||||||
Combined ratio | 108.7 | % | 118.3 | % | 95.1 | % | 105.2 | % |
FEDNAT HOLDING COMPANY AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Statements of Operations and Operating Metrics by Line of Business
(Unaudited)
| Year Ended December 31, | ||||||||||||||||||||||||||||||
| 2018 | 2017 | |||||||||||||||||||||||||||||
| Homeowners | Automobile | Other | Consolidated | Homeowners | Automobile | Other | Consolidated | |||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||
Gross premiums written | $ | 539,689 | $ | 8,603 | $ | 19,472 | $ | 567,764 | $ | 536,755 | $ | 43,505 | $ | 23,157 | $ | 603,417 | |||||||||||||||
Gross premiums earned | 539,692 | 18,402 | 21,926 | 580,020 | 525,524 | 54,679 | 22,990 | 603,193 | |||||||||||||||||||||||
Ceded premiums | (197,445 | ) | (13,744 | ) | (13,574 | ) | (224,763 | ) | (227,269 | ) | (31,037 | ) | (11,406 | ) | (269,712 | ) | |||||||||||||||
Net premiums earned | 342,247 | 4,658 | 8,352 | 355,257 | 298,255 | 23,642 | 11,584 | 333,481 | |||||||||||||||||||||||
Net investment income | — | — | 12,460 | 12,460 | — | — | 10,254 | 10,254 | |||||||||||||||||||||||
Net realized and unrealized investment gains (losses) | — | — | (4,144 | ) | (4,144 | ) | — | — | 8,548 | 8,548 | |||||||||||||||||||||
Direct written policy fees | 8,484 | 4,322 | 560 | 13,366 | 8,715 | 7,846 | 612 | 17,173 | |||||||||||||||||||||||
Other income | 14,021 | 1,148 | 3,985 | 19,154 | 13,662 | 3,277 | 5,267 | 22,206 | |||||||||||||||||||||||
Total revenues | 364,752 | 10,128 | 21,213 | 396,093 | 320,632 | 34,765 | 36,265 | 391,662 | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||
Losses and loss adjustment expenses | 206,062 | 11,617 | 10,737 | 228,416 | 206,842 | 32,752 | 7,963 | 247,557 | |||||||||||||||||||||||
Commissions and other underwriting expenses | 111,103 | 5,751 | 4,255 | 121,109 | 97,111 | 12,976 | 4,780 | 114,867 | |||||||||||||||||||||||
General and administrative expenses | 18,079 | 325 | 3,779 | 22,183 | 15,403 | 650 | 3,910 | 19,963 | |||||||||||||||||||||||
Interest expense | 100 | — | 4,077 | 4,177 | 348 | — | — | 348 | |||||||||||||||||||||||
Total costs and expenses | 335,344 | 17,693 | 22,848 | 375,885 | 319,704 | 46,378 | 16,653 | 382,735 | |||||||||||||||||||||||
Income (loss) before income taxes | 29,408 | (7,565 | ) | (1,635 | ) | 20,208 | 928 | (11,613 | ) | 19,612 | 8,927 | ||||||||||||||||||||
Income tax expense (benefit) | 7,451 | (1,917 | ) | (36 | ) | 5,498 | 360 | (4,481 | ) | 7,706 | 3,585 | ||||||||||||||||||||
Net income (loss) | 21,957 | (5,648 | ) | (1,599 | ) | 14,710 | 568 | (7,132 | ) | 11,906 | 5,342 | ||||||||||||||||||||
Net income (loss) attributable to non-controlling interest | (218 | ) | — | — | (218 | ) | (2,647 | ) | — | — | (2,647 | ) | |||||||||||||||||||
Net income (loss) attributable to FNHC shareholders | $ | 22,175 | $ | (5,648 | ) | $ | (1,599 | ) | $ | 14,928 | $ | 3,215 | $ | (7,132 | ) | $ | 11,906 | $ | 7,989 | ||||||||||||
Ratios to net premiums earned: | |||||||||||||||||||||||||||||||
Net loss ratio | 60.2 | % | 249.4 | % | 128.6 | % | 64.3 | % | 69.4 | % | 138.5 | % | 68.7 | % | 74.2 | % | |||||||||||||||
Net expense ratio | 37.8 | % | 40.3 | % | 37.7 | % | 40.5 | % | |||||||||||||||||||||||
Combined ratio | 98.0 | % | 104.6 | % | 107.1 | % | 114.7 | % |