Monday, Property and Casualty insurance company Harleysville Group Inc. (HGIC) reported a fall in second-quarter earnings primarily due to catastrophe losses. However, total revenues for the quarter improved.
The Harleysville, Pennsylvania-based company's second-quarter net income declined to $9.36 million or $0.31 per share, compared with $26.43 million or $0.82 per share in corresponding quarter last year. Five analysts polled by First Call/Thomson Financial estimated earnings of $0.35 per share for the quarter.
Results for the quarter included the impact of 14 previously announced catastrophe losses incurred during the second quarter, which reduced operating income by $0.55 per share after taxes. Operating income for the year ago quarter of 2007 included a gain of $0.06 per share from an office building sale. The company noted the number of catastrophe losses was the highest number of severe weather events to have affected a single quarter in Harleysville Group's history.
Total revenues increased to $261.52 million, compared with $242.34 million of corresponding period last year.
Excluding the impact of catastrophe losses, operating earnings per share improved over last year and underlying statutory combined ratio remained below 100%. The company bought back 12% of its outstanding shares since the third stock repurchase authorization was issued on June 2007.
For the second quarter 2008, net written premiums increased by 9% to $237.9 million, compared to $219.1 million in the corresponding period last year.
Net written premiums for the second quarter increased 8% in commercial lines to $195.4 million, while personal lines net premiums increased by 11% to $42.4 million from the year ago period.
For the six-month period, net income decreased to $33.50 million or $1.11 per share, compared with $49.33 million or $1.54 per share in the previous year period.
HGIC closed Monday's regular trading at $36.36, down $0.21 or 0.57% on the Nasdaq.
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