BIRMINGHAM, Ala., April 30 /PRNewswire-FirstCall/ -- Infinity Property and Casualty Corporation (Nasdaq: IPCC), a national provider of personal automobile insurance, today reported results for the three months ended March 31, 2009:
in millions, except per share Three Months Ended
amounts and ratios) March 31,
%
2009 2008 Change
Gross written
premiums $233.3 $253.5 (8.0%)
Revenues $222.2 $249.2 (10.8%)
Net earnings $10.8 $14.0 (22.7%)
Net earnings per
diluted share $0.76 $0.86 (11.6%)
Operating
earnings (1) $16.8 $15.1 11.8%
Operating
earnings per
diluted share (1) $1.19 $0.92 29.3%
Underwriting
income (1) $16.3 $13.0 25.1%
Combined ratio 92.4% 94.5% (2.0) pts
Return on equity 8.2% 9.2% (1.0) pts
Operating 12.8% 9.9% 2.8 pts
earnings return
on equity (1)
Book value per
share $38.23 $37.80 1.1%
Debt to total 27.4% 24.6% 2.8 pts
capital
(1) Measures used in this release that are not based on generally
accepted accounting principles ('non-GAAP') are defined at the end
of this release and reconciled to the most comparable GAAP measure.
Stronger than expected underwriting income resulted in an increase in Infinity's operating earnings per diluted share during the first quarter of 2009 compared with the same period in 2008. Net earnings declined during the first quarter of 2009 compared with the first quarter of 2008 primarily as a result of other-than-temporary impairment charges on fixed income securities.
Gross written premiums declined 8.0% during the three months ended March 31, 2009, as compared with the same period in 2008 primarily from a decline in gross written premiums in Arizona, Florida and Georgia. Gross written premiums in California, Infinity's largest state, were down 1.3%. Partially offsetting premium declines in these states was premium growth in Illinois and Nevada, as well as the Commercial Vehicle program.
Earnings and underwriting income for the three months ended March 31, 2009, included $9.8 million, pre-tax ($0.45 per diluted share after-tax), of favorable development on prior accident year loss and loss adjustment expense reserves compared with $5.9 million, pre-tax ($0.24 per diluted share after-tax), of favorable development for the three months ended March 31, 2008.
During the three months ended March 31, 2009, Infinity recorded $7.5 million, pretax, ($0.53 per diluted share after-tax) of other-than-temporary impairments on investments compared with $4.2 million, pre-tax ($0.26 per diluted share after-tax) of other-than-temporary impairments on investments recorded during the three months ended March 31, 2008.
2009 Earnings Guidance
Infinity is affirming its operating earnings guidance of $3.25- $3.75 per diluted share.
Share Repurchase Program
During the first quarter of 2009, Infinity repurchased 293,900 shares at an average price, excluding commissions, of $35.37. Infinity has $31.0 million of capacity left under this repurchase program, which expires December 31, 2009.
Forward-Looking Statements
This press release contains certain statements that may be deemed to be 'forward-looking statements' that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this press release not dealing with historical results or current facts are forward-looking and are based on estimates, assumptions, and projections. Statements that include the words 'believes,' 'seeks,' 'expects,' 'may,' 'should,' 'intends,' 'likely,' 'targets,' 'plans,' 'anticipates,' 'estimates' or the negative version of those words and similar statements of a future or forward-looking nature identify forward-looking statements. Examples of such forward-looking statements include statements relating to expectations concerning market conditions, premiums, growth, earnings, investment performance, expected losses, rate changes and loss experience.
