4Q 2010 Highlights
Indemnity Shareholder Interest
- Net income attributable to Indemnity per share-diluted was $0.22 per share in the fourth quarter of 2010 compared to net income per share-diluted of $0.43 per share in the fourth quarter of 2009.
- Net operating income attributable to Indemnity per share (excluding net realized gains or losses and impairments on investments and related taxes) decreased to $0.32 per share in the fourth quarter of 2010 from $0.39 per share for the same period one year ago.
- Gross margins from management operations decreased to 12.0 percent in the fourth quarter of 2010 from 14.6 percent in the fourth quarter of 2009.
- Indemnity’s investment operations pretax income totaled $11 million for the fourth quarter of 2010 compared to $1 million for the fourth quarter of 2009.
- Indemnity incurred a charge of $18 million, or $0.31 per share-diluted, for a deferred tax expense related to the pending sale of its 21.6 percent ownership interest of EFL to the Exchange.
Editor’s Note: Workers’ Comp related commentary pulled from release:
- Total favorable development of prior accident year loss reserves improved the combined ratio 9.6 points in the fourth quarter of 2010, compared to 6.4 points in the fourth quarter of 2009. The favorable development in the fourth quarter of 2010 was driven primarily by improved severity trends in the commercial multi-peril, private passenger auto and workers compensation lines of business. In the fourth quarter of 2009, the favorable development was primarily driven by the workers compensation line of business, partially offset by adverse development in the private passenger auto and commercial multi-peril lines of business.
The full earnings release is available here.