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Infinity Property and Casualty Corp. Reports Operating Results (10-Q)

August 07, 2012 | About:
10qk

10qk

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Infinity Property and Casualty Corp. (IPCC) filed Quarterly Report for the period ended 2012-06-30.

Infinity Property And Casualty Corp. has a market cap of $678.8 million; its shares were traded at around $57.24 with a P/E ratio of 26.4 and P/S ratio of 0.6. The dividend yield of Infinity Property And Casualty Corp. stocks is 1.6%. Infinity Property And Casualty Corp. had an annual average earning growth of 1.7% over the past 10 years.

Highlight of Business Operations:

In May 2005, our shareholders approved the Non-employee Directors Stock Ownership Plan (“Directors Plan”). The purpose of the Directors Plan is to include our common stock as part of the compensation provided to our non-employee directors and to provide for stock ownership requirements for our non-employee directors. There are 200,000 shares of our common stock reserved for issuance under the Directors Plan, of which we have issued 49,461 shares as of June 30, 2012. Under the terms of the Directors Plan, we grant shares on or about June 1 of each year and we restrict these shares from sale or transfer by any recipient for six months from the date of grant. In June 2011, we issued 6,657 shares of our common stock, valued pursuant to the Directors Plan at $350,000, to our non-employee directors. In June 2012, we issued 5,502 shares of our common stock, valued pursuant to the Directors Plan at $300,000, to our non-employee directors. We treat participants shares as issued and outstanding for basic and diluted earnings per share calculations.

We consider all fixed maturity and equity securities available-for-sale and report them at fair value with the net unrealized gains or losses reported after-tax (net of any valuation allowance) as a component of other comprehensive income. The proceeds from sales of securities for the three months ended June 30, 2012 and 2011 were $86.7 million and $51.0 million, respectively. The proceeds from sales of securities for the six months ended June 30, 2012 and 2011 were $123.5 million and $108.7 million, respectively. The proceeds for the three and six months ended June 30, 2011 were net of $0.9 million of receivable for securities sold during the second quarter of 2011 that had not settled at June 30, 2011.

Net earnings and diluted earnings per share for the three months ended June 30, 2012 were $7.0 million and $0.58, respectively, compared to $6.8 million and $0.54, respectively, for the three months ended June 30, 2011. Net earnings and diluted earnings per share for the six months ended June 30, 2012 were $11.2 million and $0.94, respectively, compared to $17.1 million and $1.35, respectively, for the six months ended June 30, 2011. The decrease in diluted earnings per share for the six months ended June 30, 2012 is primarily due to an increase in unfavorable development recognized in 2012 coupled with a decline in realized gains on investments.

Included in net earnings for the three months ended June 30, 2012 and 2011 were $1.2 million ($1.9 million pre-tax) of unfavorable development on prior accident year loss and LAE reserves and $2.2 million ($3.4 million pre-tax) of unfavorable development on prior accident year loss and LAE reserves, respectively. Included in net earnings for the six months ended June 30, 2012 and 2011 were $1.2 million ($1.8 million pre-tax) of unfavorable development on prior accident year loss and LAE reserves and $15.0 thousand ($23.0 thousand pre-tax) of unfavorable development on prior accident year loss and LAE reserves, respectively. The following table displays combined ratio results by accident year developed through June 30, 2012.

Our book value per share increased 1.6% from $56.05 at December 31, 2011 to $56.92 at June 30, 2012. This increase was primarily due to earnings, net of shareholder dividends, and the increase in unrealized gains on investments for the six months ended June 30, 2012.

Read the The complete Report

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