Meadowbrook Doubles Q3 Profit From Year Ago

Southfield, Mich.-based specialty carrier Meadowbrook Insurance Group reported net third-quarter income of $5.3 million, or 18 cents per diluted share, compared to net income of $2.5 million, or 9 cents per diluted share, a year ago.

The company said the net income for the quarter reflects the growth of earned premium in profitable programs, continued rate increases, growth in commissions and fees, and overall expense management. This improvement also reflects the net benefit from the acceleration of revenue recognition resulting from the termination of a multistate claims run-off contract and the cumulative effect of a reduction in estimated net reinsurance costs in one specific program, the company said in a statement.

During the quarter, gross written premium increased $13.4 million, or 20.4 percent, to $79.2 million, from $65.8 million for the comparable period in 2003. This increase reflects anticipated growth from premium rate increases, the conversion of existing controlled programs to the company’s underwriting subsidiaries, the growth of existing programs, and the implementation of new programs with proven track records of profitability.