Seattle, WA -(BusinessWire)- SeaBright Holdings, Inc. (NYSE: SBX) recently announced results for the quarter and six months ended June 30, 2012. For the second quarter of 2012, the Company recorded net income of $1.4 million or $0.06 per diluted share compared to a net loss of $15.7 million or $0.74 per diluted share for the same period in 2011. Total revenue for the quarter was $64.3 million versus $69.0 million in the year-earlier period. For the second quarter of 2012, net premiums earned were $56.6 million compared to $62.1 million for the same period in 2011. Net realized gains totaled $2.1 million in the second quarter of 2012 compared to $0.1 million recorded in the same period in 2011. Net realized gains in 2012 resulted from the sale of investment securities in order to realize a portion of the Company’s tax loss carry forwards and to reduce exposure to interest rate risk.
For the six months ended June 30, 2012, the Company recorded net income of $9.5 million or $0.43 per diluted share compared to a net loss of $15.8 million or $0.75 per diluted share for the same period in 2011. Total revenue for the six months was $137.6 million versus $132.8 million in the year-earlier period. For the first six months of 2012, net premiums earned were $115.7 million compared to $118.8 million for the same period in 2011. Net realized gains were $10.1 million during the first six months of 2012 compared to $0.4 million recorded in the same period last year.
“Our second quarter results reflect sustained progress on our return to profitability,” said John Pasqualetto, SeaBright’s Chairman, President and Chief Executive Officer. “Net loss reserves remained stable in the quarter and workers’ compensation rates continue to rise. We are sustaining meaningful price increases and are also achieving greater diversification of our book of business by industry and region.”
The net loss ratio for the second quarter of 2012 was 76.1% compared to 116.5% for the same period in 2011. During the second quarter of 2012, on a pre-tax basis, the Company recognized a net decrease of $1.0 million in prior years’ loss reserve estimates compared to a net increase of $27.1 million recorded in the same period last year. The current accident year estimated net loss ratio for the second quarter of 2012 was 65.0% in 2012, compared to 62.5% for the same period in 2011.
Total underwriting, acquisition and insurance expenses for the second quarter 2012 were $16.7 million compared to $19.1 million for the same period in 2011. The net underwriting expense ratio for the second quarter of 2012 was 29.5% compared to 30.8% in the same period in 2011.
The net combined ratio for the second quarter of 2012 was 105.6% compared to 147.3% for the same period in 2011.
Net investment income for the second quarter of 2012 was $4.4 million compared to $5.3 million for the same period in 2011.
The net loss ratio for the first six months of 2012 was 74.5% compared to 97.0% for the same period in 2011. During the six months of 2012, on a pre-tax basis, the Company recognized a net decrease of $1.0 million in prior years’ loss reserve estimates compared to a net increase of $28.4 million recorded in the same period last year. The net underwriting expense ratio for the first six months of 2012 was 29.1% compared to 32.1% in the same period in 2011.
At June 30, 2012, SeaBright had approximately 1,400 customers compared to approximately 1,600 at June 30, 2011. Customer count in the Company’s core business decreased by approximately 240 year-over-year, while customer count in the program business increased by approximately 60 year-over-year. Average premium size at June 30, 2012 was $297,000 in the core business compared to $249,000 at June 30, 2011 and was $93,000 compared to $105,000 at June 30, 2011 in the program business.
At June 30, 2012, the Company had $699.7 million in fixed income securities, of which none were rated below investment grade, with an average credit quality of AA-.
The complete earnings release is available here: SeaBright Holdings Second Quarter and Six Month 2012 Results
Source: SeaBright/BusinessWire