The Main Street America Group announced today its 2012 financial results included an 11.9 percent return on equity, $978 million net written premium, surplus growth of $71 million and net income of $56.7 million for the fiscal year ended Dec. 31, 2012.
The company squeaked out an underwriting profit, reporting a 99.9 combined ratio for 2012.
The 11.9 percent return on equity was driven by investment returns of $83.2 million. The company’s return on equity in 2011 was 2.7 percent.
Net income of $56.7 million was an 80 percent gain over the prior year ($31.5 million) when, the company said, its results were heavily affected by $63 million in catastrophe losses. In 2012, the company sustained $23 million in catastrophe losses.
The combined ratio of 99.9 was an improvement over the company’s 2011 catastrophe-heavy 106.7 combined ratio.
Commercial lines, which the insurer said accounts for 58 percent of its net written premium, achieved a 92.6 combined ratio and 8.5 percent premium growth. Its surety unit posted a 90.5 combined ratio and 15 percent premium growth. Overall, the company’s four regions achieved a 98.5 combined ratio and 3.9 percent direct premium growth.
Net written premium of $978 million was a 10 percent increase over the prior year ($889 million).
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