WINSTON-SALEM, N.C., Feb. 27 /PRNewswire-FirstCall/ -- Triad Guaranty Inc. (Nasdaq: TGIC) today reported a net loss for the quarter ended December 31, 2008 of $122.2 million compared with a net loss of $160.1 million for the third quarter of 2008 and a net loss of $75.0 million for the fourth quarter of 2007. The 2008 fourth quarter diluted loss per share was $8.16 compared to a diluted loss per share of $10.69 for the 2008 third quarter and $5.05 for the fourth quarter of 2007.
The net loss for the year ended December 31, 2008 was $631.2 million compared to a net loss of $77.5 million for the year ended December 31, 2007. The diluted loss per share was $42.27 for 2008 compared to a diluted loss per share of $5.22 for 2007.
Ken Jones, President and CEO, said, "As a company in run-off, our primary focus remains on the efficient and effective servicing of our insured portfolio, particularly around loss mitigation. We continue to examine and refine all aspects of our default management and claims process, including our processes for investigating misrepresentation and fraud in the mortgage origination process. Our risk in default has continued to increase, which affects our financial results as we establish additional reserves for losses. Part of our effort to minimize losses is the review of early payment defaults to identify misrepresentation and fraud in the mortgage origination process. These reviews resulted in increased rescission activity during the fourth quarter of 2008. This increase in rescissions allowed us to adjust the frequency factors utilized in our reserve calculation, which has tempered the increase in our reserves. Additionally, the reserve increase in the fourth quarter was smaller than the prior three quarters in 2008 due in part to the benefits of structures such as captive reinsurance on our Primary business and stop losses on Modified Pool transactions that limited our net exposure."
Mr. Jones noted, "We continue to work closely with our primary regulator, the Illinois Division of Insurance, as well as with Fannie Mae and Freddie Mac. Although we are reporting a deficiency in assets at December 31, 2008, most of the decline in stockholders' equity during 2008 resulted from the non-cash increase in our reserves for losses. Cash and invested assets actually increased during 2008, with positive cash flow from operations for 2008 amounting to $147.1 million. As of December 31, 2008, we reported gross reserves for losses of $1.2 billion, an increase of $827.9 million over December 31, 2007. Our success in managing this liability through proactive loss mitigation is now a major area of focus. Nevertheless, we find ourselves operating in historically unprecedented times and the uncertainty regarding the deepening recession, continued declining home prices, and rising unemployment rates, among other considerations, could further adversely impact our future results of operations and financial condition. Although we cannot effectively measure the impact of these factors, we are encouraged by, and supportive of, both the public and private efforts to avoid home foreclosures through loan modifications. While we cannot predict the success of these programs, they could significantly reduce the number and size of claims submitted to us for payment. Finally, it should be noted that no benefit has been recognized in these financial statements from our $95 million excess of loss reinsurance policy that is presently in arbitration."
Triad ceased issuing commitments for new mortgage insurance as of July 15, 2008, and is currently in run-off. Accordingly, production during the fourth quarter was insignificant. Total insurance in force declined to $62.6 billion at December 31, 2008, a 2.7% drop from September 30, 2008 and an 8.3% decline from December 31, 2007. We believe the primary reason for the lack of a more significant decline in our insurance in force during the fourth quarter was high persistency rates, as reduced credit availability and declining home prices limited the opportunities for borrowers to refinance existing mortgages. As these factors change in the future, our persistency rates and the resulting premium revenue will be correspondingly affected.
Total revenues declined to $41.4 million for the fourth quarter of 2008 from $69.5 million in the third quarter of 2008 and $82.6 million for the fourth quarter of 2007, reflecting two significant non-cash items. Earned premiums were lower primarily due to a non-cash accrual for premium refunds of approximately $17 million related to expected rescissions. Additionally, we recognized investment losses of $18.9 million in the fourth quarter of 2008, primarily the result of non-cash impairments relating to the decline in valuations in the financial markets.
Net losses and loss adjustment expenses were $178.1 million for the fourth quarter of 2008, compared to $231.2 million for the third quarter of 2008 and $191.7 million for the fourth quarter of 2007. The year-over-year and quarter-over-quarter declines in overall net losses and loss adjustment expenses reflects an increased benefit from future rescissions recognized in the fourth quarter of 2008, and the benefits of risk-sharing structures such as captive reinsurance programs and stop losses. For the fourth quarter of 2008, we recognized benefits of $68 million from risk-sharing structures, compared with $59 million in the third quarter of 2008 and $7 million in the fourth quarter of 2007. Paid losses for the 2008 fourth quarter totaled $69.4 million compared to $59.4 million for the third quarter of 2008 and $36.3 million in the 2007 fourth quarter. The recent implementation of foreclosure moratoriums by the GSEs and certain lenders as well as our loss mitigation and claims review efforts contributed to a lower than expected increase in paid losses in the fourth quarter of 2008. The fourth quarter change in reserves of $106.1 million was less than the $166.0 million change in the third quarter of 2008 and the $150.7 million change in the fourth quarter of 2007, which is due in part to the benefits of risk-sharing structures. Additionally, we increased our expectation for future rescissions based upon our experience through December 31, 2008.
Expenses were basically flat during the last two quarters of 2008 and down significantly compared to the first two quarters of 2008 and the fourth quarter of 2007 due to the transition of our business to run-off in July 2008. The decision to transition our business to run-off resulted in a significant reduction in personnel costs. In addition, we eliminated the deferred acquisition costs asset in the first quarter of 2008 and no longer have any deferred acquisition cost amortization expense, which reduced our expenses in the fourth quarter of 2008 as compared to the fourth quarter of 2007. The low effective tax rate for both the quarter and year ended December 31, 2008 reflects our inability to recognize the full tax benefit on our pre-tax loss, as we expect to be in a net operating loss carry forward position for the foreseeable future.
We have updated the supplemental information for the 2008 fourth quarter results related to product differentiation, risk structures, additional portfolio characteristics and performance on our web site at www.triadguaranty.com. The supplemental information can be found under "Investors" and then under "Webcasts and Presentations" by the title "Supplemental Information - Fourth Quarter 2008".
(Relevant Triad Guaranty Inc. financial and statistical information follows)
Triad Guaranty Inc.'s wholly owned subsidiary, Triad Guaranty Insurance Corporation, is a nationwide mortgage insurer pursuing a voluntary run-off of its existing in-force book of business. For more information, please visit the Company's web site at www.triadguaranty.com.
Certain of the statements contained in this release are "forward-looking statements" and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include estimates and assumptions related to economic, competitive, regulatory, operational and legislative developments. These forward-looking statements are subject to change, uncertainty and circumstances that are, in many instances, beyond our control and they have been made based upon our current expectations and beliefs concerning future developments and their potential effect on us. Actual developments and their results could differ materially from those expected by us, depending on the outcome of a number of factors, including our ability to complete a solvent run-off of our existing in-force book of business (which is dependent upon the continued support of the Illinois Division of Insurance), the possibility of general economic and business conditions that are different than anticipated, legislative, regulatory, and other similar developments, the appointment of FHFA as the conservator of Fannie Mae and Freddie Mac, our ability to satisfy the continued listing requirements of the NASDAQ stock market, changes in interest rates, the housing market, the mortgage industry and the stock market, as well as the factors described under "Risk Factors" and under "Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995" in our Annual Report on Form 10-K for the year ended December 31, 2007 and in other reports and statements that we file with the Securities and Exchange Commission. Forward-looking statements are based upon our current expectations and beliefs concerning future events and we undertake no obligation to update or revise any forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements are made.
Triad Guaranty Inc.
Consolidated Statement of Operations
Three Months Ended Year Ended
December 31, December 31,
(Unaudited) (Unaudited) (Unaudited)
2008 2007 2008 2007
---- ---- ---- ----
(Dollars in thousands except per share amounts)
Earned premiums $49,839 $73,130 $257,422 $278,900
Net investment income 10,510 9,544 39,581 32,936
Net realized investment
losses (18,944) (29) (26,559) (3,049)
Other income 2 2 8 8
- - - -
Total revenues 41,407 82,647 270,452 308,795
Net paid claims 69,372 36,341 237,080 100,613
Change in reserves 106,080 150,687 665,549 264,575
Loss adjustment expenses 2,647 4,624 20,672 7,751
----- ----- ------ -----
Net losses and loss
adjustment expenses 178,099 191,652 923,301 372,939
Interest expense on debt 694 1,828 3,557 4,375
Policy acquisition costs - 4,637 39,416 18,497
Other operating
expenses - net 8,639 10,895 58,709 43,628
----- ------ ------ ------
Loss before income taxes (146,025) (126,365) (754,531) (130,644)
Income tax benefit (23,818) (51,406) (123,404) (53,186)
------- ------- -------- -------
Net loss $(122,207) $(74,959) $(631,127) $(77,458)
========= ======== ========= ========
Diluted loss per share $(8.16) $(5.05) $(42.27) $(5.22)
Diluted weighted average
common and common stock
equivalents outstanding
(in thousands) 14,980 14,839 14,930 14,829
Triad Guaranty Inc.
Consolidated Balance Sheet
(Unaudited)
December 31, December 31,
2008 2007
---- ----
(Dollars in thousands except per share amounts)
Assets:
Invested assets:
Fixed maturities, available for
sale, at market $854,186 $725,631
Equity securities, available for
sale, at market 583 2,162
Short-term investments 40,653 56,746
------ ------
895,422 784,539
Cash and cash equivalents 39,940 124,811
Deferred policy acquisition costs - 36,243
Prepaid federal income tax 15 116,008
Reinsurance recoverable 150,848 5,815
Other assets 44,309 65,437
------ ------
Total assets $1,130,534 $1,132,853
========== ==========
Liabilities:
Losses and loss adjustment expenses $1,187,840 $359,939
Unearned premiums 15,863 17,793
Revolving line of credit - 80,000
Deferred income tax - 123,297
Long-term debt 34,529 34,519
Other liabilities 28,967 18,454
------ ------
Total liabilities 1,267,199 634,002
Stockholders' equity:
Retained earnings (accumulated deficit) (255,509) 375,618
Accumulated other comprehensive income 6,063 13,405
Other equity accounts 112,781 109,828
------- -------
Total stockholders' equity
(deficiency in assets) (136,665) 498,851
-------- -------
Total liabilities and
stockholders' equity $1,130,534 $1,132,853
========== ==========
Stockholders' equity (deficiency in
assets) per share: $(9.01) $33.43
Common shares outstanding 15,161,259 14,920,243
Triad Guaranty Inc.
Consolidated Statement of Cash Flow
Year Ended December 31,
2008 2007
---- ----
(Unaudited)
(Dollars in Thousands)
OPERATING ACTIVITIES
Net loss $(631,127) $(77,458)
Adjustments to reconcile net loss to
net cash provided by operating activities:
Increase in loss and unearned premium
reserves 825,971 280,187
Decrease (increase) in amounts due to/from
reinsurer (150,839) 616
Net realized investment losses 26,559 3,049
Policy acquisition costs deferred (3,173) (19,597)
Amortization of policy acquisition costs 39,416 18,497
Decrease in deferred income taxes (121,391) (53,181)
Redemption of Tax and Loss Bonds 115,993 50,900
Other operating activities 45,730 (11,937)
------ -------
Net cash provided by operating activities 147,139 191,076
------- -------
INVESTING ACTIVITIES
Purchases of investment securities (839,372) (299,047)
Sales and maturities of investment
securities 674,688 165,348
Decrease (increase) in short-term
investments 14,074 (51,445)
Other investing activities (1,295) (6,052)
------ ------
Net cash used in investing activities (151,905) (191,196)
-------- --------
FINANCING ACTIVITIES
Borrowings (repayments) on credit facility (80,000) 80,000
Excess tax benefits related to share based
compensation 15 175
Proceeds from exercise of stock options - 616
- ---
Net cash provided by (used in) financing
activities (79,985) 80,791
------- ------
Foreign currency translation adjustment (120) 5,531
---- -----
Net decrease in cash (84,871) 86,202
Cash at beginning of period 124,811 38,609
------- ------
Cash at end of period $39,940 $124,811
======= ========
Triad Guaranty Inc.
Sequential Quarterly Statistical Information
(Unaudited)
Dec 31, Sep 30, Jun 30, Mar 31,
2008 2008 2008 2008
---- ---- ---- ----
(Dollars in millions unless otherwise indicated)
Insurance In Force
------------------
Primary insurance in force:
- Flow business $39,370 $40,451 $41,645 $42,086
- Structured bulk transactions 3,902 4,065 4,248 4,374
----- ----- ----- -----
Total Primary insurance in
force 43,272 44,516 45,894 46,459
Modified Pool insurance in force 19,312 19,823 20,439 21,187
------ ------ ------ ------
Total insurance in force $62,584 $64,339 $66,333 $67,646
======= ======= ======= =======
Number of insured loans:
- Primary 252,368 259,556 267,689 272,289
- Modified Pool 92,687 95,089 97,960 101,723
------ ------ ------ -------
Total number of insured
loans 345,055 354,645 365,649 374,012
======= ======= ======= =======
Primary net risk in force:
- Flow business $8,972 $9,234 $9,524 $9,671
- Structured bulk business 1,298 1,358 1,425 1,470
----- ----- ----- -----
Total Primary net risk in
force $10,270 $10,592 $10,949 $11,141
======= ======= ======= =======
Modified Pool risk in force net of
stop loss $837 $853 $875 $903
Deductibles on modified pool risk $88 $95 $103 $108
Primary flow insurance in force
subject to captive reinsurance
arrangements 57.6% 57.6% 57.9% 58.8%
Primary annual persistency rate 86.6% 85.8% 85.1% 83.3%
Dec 31, Sep 30, Jun 30, Mar 31,
2007 2007 2007 2007
---- ---- ---- ----
(Dollars in millions unless otherwise indicated)
Insurance In Force
------------------
Primary insurance in force:
- Flow business $41,840 $40,610 $38,590 $35,366
- Structured bulk transactions 4,525 4,700 4,133 2,616
----- ----- ----- -----
Total Primary insurance in
force 46,365 45,310 42,724 37,982
Modified Pool insurance in force 21,863 22,737 23,649 23,507
------ ------ ------ ------
Total insurance in force $68,228 $68,047 $66,373 $61,489
======= ======= ======= =======
Number of insured loans:
- Primary 273,798 269,681 258,163 239,326
- Modified Pool 105,109 109,133 113,725 114,711
------- ------- ------- -------
Total number of insured
loans 378,907 378,814 371,888 354,037
======= ======= ======= =======
Primary net risk in force:
- Flow business $9,642 $9,350 $8,866 $8,094
- Structured bulk business 1,525 1,583 1,373 843
----- ----- ----- ---
Total Primary net risk in
force $11,166 $10,933 $10,239 $8,937
======= ======= ======= ======
Modified Pool risk in force net of
stop loss $913 $922 $935 $933
Deductibles on modified pool risk $112 $115 $117 $114
Primary flow insurance in force
subject to captive reinsurance
arrangements 59.0% 58.0% 56.8% 57.9%
Primary annual persistency rate 81.4% 79.1% 77.7% 77.0%
Dec 31,
2006
----
(Dollars in millions unless otherwise indicated)
Insurance In Force
------------------
Primary insurance in force:
- Flow business $32,779
- Structured bulk transactions 1,330
-----
Total Primary insurance in force 34,109
Modified Pool insurance in force 22,719
------
Total insurance in force $56,828
=======
Number of insured loans:
- Primary 225,531
- Modified Pool 112,555
-------
Total number of insured loans 338,086
=======
Primary net risk in force:
- Flow business $7,447
- Structured bulk business 377
---
Total Primary net risk in force $7,824
======
Modified Pool risk in force net of stop loss $890
Deductibles on modified pool risk $101
Primary flow insurance in force subject to
captive reinsurance arrangements 61.0%
Primary annual persistency rate 76.6%
Triad Guaranty Inc.
Sequential Quarterly Statistical Information (con't.)
(Unaudited)
Dec 31, Sep 30, Jun 30, Mar 31,
2008 2008 2008 2008
---- ---- ---- ----
(Dollars in millions unless otherwise indicated)
Delinquencies and
Claim Information
------------------
Total Primary
delinquent loans 24,241 19,441 16,075 13,322
- Flow business 20,644 16,456 13,710 11,576
- Bulk business 3,597 2,985 2,365 1,746
Total Modified Pool
delinquent loans 16,045 12,664 10,526 8,594
- Structured with
deductibles (1) 9,058 7,278 6,221 5,128
- Structured without
deductibles 6,987 5,386 4,305 3,466
Total Primary
delinquency rate 9.61% 7.49% 6.01% 4.89%
Modified Pool
delinquency rate 17.31% 13.32% 10.75% 8.45%
Primary average paid
severity ($ thousands) $58.4 $51.3 $52.4 $42.6
- Flow business $54.2 $49.4 $49.3 $41.4
- Bulk business $93.6 $77.5 $90.8 $68.3
Primary net paid claims
($ thousands) $64,488 $48,766 $48,071 $29,209
- Flow business $53,538 $43,727 $41,805 $27,091
- Bulk business $10,950 $5,040 $6,266 $2,119
Modified Pool average
paid severity
($ thousands) $63.4 $71.7 $55.6 $65.0
Modified Pool net paid
claims ($ thousands) $4,943 $10,755 $20,192 $10,852
Gross Case Reserves as
percent of risk in
default (2) 42.0% 45.4% 45.0% 40.5%
Financial Information (3)
-------------------------
Loss ratio - GAAP 357.3% 352.1% 419.0% 307.0%
Expense ratio - GAAP 17.7% 13.6% 39.4% 25.5%
---- ---- ---- ----
Combined ratio - GAAP 375.0% 365.7% 458.4% 332.5%
===== ===== ===== =====
Risk-to-capital ratio 125.2:1 39.7:1 42.7:1 27.7:1
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
2007 2007 2007 2007 2006
---- ---- ---- ---- ----
(Dollars in millions unless otherwise indicated)
Delinquencies and Claim
Information
-----------------------
Total Primary
delinquent loans 10,419 7,541 5,940 5,632 5,565
- Flow business 9,166 6,807 5,504 5,335 5,265
- Bulk business 1,253 734 436 297 300
Total Modified Pool
delinquent loans 6,402 4,826 3,913 3,366 3,001
- Structured with
deductibles (1) 4,072 3,104 2,508 2,176 1,897
- Structured without
deductibles 2,330 1,722 1,405 1,190 1,104
Total Primary
delinquency rate 3.81% 2.80% 2.30% 2.35% 2.47%
Modified Pool
delinquency rate 6.09% 4.42% 3.44% 2.93% 2.67%
Primary average paid
severity ($ thousands) $41.6 $36.9 $30.9 $31.3 $28.1
- Flow business $40.9 $36.9 $30.9 $31.1 $27.9
- Bulk business $63.9 $35.9 $30.1 $34.0 $29.8
Primary net paid claims
($ thousands) $27,012 $23,058 $16,687 $16,447 $15,100
- Flow business $25,798 $22,090 $15,965 $15,122 $13,880
- Bulk business $1,214 $968 $722 $1,325 $1,220
Modified Pool average
paid severity ($
thousands) $57.9 $41.3 $26.6 $23.7 $26.2
Modified Pool net paid
claims ($ thousands) $9,328 $5,413 $1,386 $1,281 $1,493
Gross Case Reserves as
percent of risk in
default (2) 36.6% 32.1% 26.9% 27.3% 27.0%
Financial Information (3)
-------------------------
Loss ratio - GAAP 262.1% 148.2% 60.1% 50.9% 70.9%
Expense ratio - GAAP 20.8% 22.4% 21.9% 22.8% 22.8%
---- ---- ---- ---- ----
Combined ratio - GAAP 282.9% 170.6% 82.0% 73.7% 93.7%
===== ===== ==== ==== ====
Risk-to-capital ratio 20.5:1 17.8:1 16.0:1 13.8:1 12.5:1
(1) We record reserves in our financial statements for defaults on
contracts where the incurred losses have exceeded the amount of the
deductible.
(2) Reflects gross case reserves, which excludes IBNR and ceded reserves,
as a percent of risk in default for total primary delinquent loans and
total modified pool delinquent loans.
(3) The Loss & Expense Ratios do not reflect any impact from establishment
of Premium Deficiency Reserve.
TRIAD GUARANTY INC.
Sequential Quarterly Financial Statements
(unaudited)
Condensed Statements of Operations For
The Quarter Ended
(Dollars in thousands)
----------------------
Dec 31, Sep 30, Jun 30, Mar 31,
2008 2008 2008 2008
---- ---- ---- ----
Revenue:
Earned premiums $49,839 $65,654 $69,864 $72,065
Net investment income 10,510 10,349 9,175 9,547
Realized investment gains
(losses) (18,944) (6,519) (3,799) 2,703
Other income (loss) 2 2 2 2
- - - -
Total revenues 41,407 69,486 75,242 84,317
------ ------ ------ ------
Losses and expenses:
Net paid claims 69,372 59,357 68,263 40,088
Change in reserves 106,080 165,958 218,568 174,944
Loss adjustment
expenses 2,647 5,879 5,918 6,227
----- ----- ----- -----
Net losses and LAE 178,099 231,194 292,749 221,259
Change in premium
deficiency reserve - - (15,000) 15,000
Interest expense on debt 694 691 696 1,476
Amortization of DAC - - - 39,416
Other operating expenses 8,639 8,726 27,238 14,106
----- ----- ------ ------
Total losses and
expenses 187,432 240,611 305,683 291,257
------- ------- ------- -------
Income (loss) before
income taxes (146,025) (171,125) (230,441) (206,940)
Income taxes (benefit) (23,818) (11,030) (31,630) (56,926)
------- ------- ------- -------
Net income (loss) $(122,207) $(160,095) $(198,811) $(150,014)
========= ========= ========= =========
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
2007 2007 2007 2007 2006
---- ---- ---- ---- ----
Revenue:
Earned premiums $73,130 $72,090 $69,732 $63,949 $58,222
Net investment income 9,544 8,370 7,673 7,349 7,178
Realized investment
gains (losses) (29) 85 (3,867) 761 (52)
Other income (loss) 2 2 2 2 2
- - - - -
Total revenues 82,647 80,547 73,540 72,061 65,350
------ ------ ------ ------ ------
Losses and expenses:
Net paid claims 36,341 28,471 18,073 17,728 16,593
Change in reserves 150,687 76,612 23,052 14,224 23,325
Loss adjustment
expenses 4,624 1,730 768 629 1,382
----- ----- --- --- -----
Net losses and LAE 191,652 106,813 41,893 32,581 41,300
Change in premium
deficiency reserve - - - - -
Interest expense
on debt 1,828 1,161 694 694 694
Amortization of DAC 4,637 4,567 4,670 4,624 4,179
Other operating
expenses 10,895 11,686 10,716 10,330 9,268
------ ------ ------ ------ -----
Total losses and
expenses 209,012 124,227 57,973 48,229 55,441
------- ------- ------ ------ ------
Income (loss) before
income taxes (126,365) (43,680) 15,567 23,832 9,909
Income taxes (benefit) (51,406) (11,831) 3,541 6,510 1,806
------- ------- ----- ----- -----
Net income (loss) $(74,959) $(31,849) $12,026 $17,322 $8,103
======== ======== ======= ======= ======
Condensed Balance Sheets As Of
(Dollars in thousands)
----------------------
Dec 31, Sep 30, Jun 30, Mar 31,
2008 2008 2008 2008
---- ---- ---- ----
Assets
Invested assets $895,422 $890,720 $869,022 $760,073
Cash 39,940 47,818 19,669 80,544
Real estate acquired 713 3,661 6,202 8,993
Deferred policy
acquisition costs - - - -
Prepaid federal
income tax 15 15 63,184 115,598
Reinsurance recoverable 150,848 111,827 55,316 93,244
Other assets 43,596 47,915 50,405 52,572
------ ------ ------ ------
Total assets $1,130,534 $1,101,956 $1,063,798 $1,111,024
========== ========== ========== ==========
Liabilities and
stockholders' equity
Liabilities:
Losses and loss
adjustment expenses $1,187,840 $1,042,053 $817,262 $547,766
Premium deficiency
reserve - - - 96,073
Deferred income taxes - 22,889 30,386 61,522
Borrowing under
credit facility - - - -
Long term debt 34,529 34,527 34,527 34,522
Accrued expenses and
other liabilities 44,830 30,887 40,714 32,699
------ ------ ------ ------
Total liabilities 1,267,199 1,130,356 922,889 772,582
Total stockholders'
equity (deficiency
in assets) (136,665) (28,400) 140,909 338,442
-------- ------- ------- -------
Total liabilities
and stockholders'
equity $1,130,534 $1,101,956 $1,063,798 $1,111,024
========== ========== ========== ==========
Dec 31, Sep 30, Jun 30, Mar 31,
2007 2007 2007 2007
---- ---- ---- ----
Assets
Invested assets $784,539 $794,373 $674,199 $669,160
Cash 124,811 30,617 26,711 10,429
Real estate acquired 10,860 12,566 7,923 9,765
Deferred policy
acquisition costs 36,243 35,574 35,157 35,035
Prepaid federal income tax 116,008 168,817 170,076 166,693
Reinsurance recoverable 5,815 2 1 211
Other assets 54,577 54,724 46,210 40,223
------ ------ ------ ------
Total assets $1,132,853 $1,096,673 $960,277 $931,516
========== ========== ======== ========
Liabilities and
stockholders' equity
Liabilities:
Losses and loss
adjustment expenses $359,939 $200,455 $122,061 $98,721
Premium deficiency
reserve - - - -
Deferred income taxes 123,297 170,477 177,888 180,232
Borrowing under
credit facility 80,000 80,000 - -
Long term debt 34,519 34,517 34,514 34,512
Accrued expenses and
other liabilities 36,247 39,754 31,191 30,898
------ ------ ------ ------
Total liabilities 634,002 525,203 365,654 344,363
Total stockholders'
equity (deficiency
in assets) 498,851 571,470 594,623 587,152
------- ------- ------- -------
Total liabilities and
stockholders' equity $1,132,853 $1,096,673 $960,277 $931,515
========== ========== ======== ========
Dec 31,
2006
----
Assets
Invested assets $607,312
Cash 38,609
Real estate acquired 10,170
Deferred policy acquisition costs 35,143
Prepaid federal income tax 166,908
Reinsurance recoverable 840
Other assets 36,648
------
Total assets $895,630
========
Liabilities and stockholders' equity
Liabilities:
Losses and loss adjustment expenses $84,352
Premium deficiency reserve -
Deferred income taxes 176,483
Borrowing under credit facility -
Long term debt 34,510
Accrued expenses and other liabilities 30,062
------
Total liabilities 325,407
Total stockholders' equity (deficiency in assets) 570,224
-------
Total liabilities and stockholders' equity $895,631
========
