SEABRIGHT INSURANCE HOLDINGS INC Reports Operating Results (10-Q)

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Nov 02, 2012
SEABRIGHT INSURANCE HOLDINGS INC (SBX, Financial) filed Quarterly Report for the period ended 2012-09-30.

Seabright Holdings, Inc. has a market cap of $246.5 million; its shares were traded at around $10.98 with a P/E ratio of 64.6 and P/S ratio of 0.9. The dividend yield of Seabright Holdings, Inc. stocks is 1.8%.

Highlight of Business Operations:

Net Investment Income. Net investment income was $4.4 million for the three months ended September 30, 2012 compared to $5.2 million for the same period in 2011, representing a decrease of $0.8 million, or 15.2%. Net investment income was $13.8 million for the nine months ended September 30, 2012, compared to $15.8 million for the same period in 2011, representing a decrease of $2.0 million, or 12.7%. Average invested assets were $755.5 million for the three months ended September 30, 2012, an increase of $45.1 million, or 6.3%, from $710.4 million for the same period in 2011. For the nine months ended September 30, 2012, average invested assets increased $39.9 million, or 5.7%, from $705.0 million in 2011 to $744.9 million in 2012. Our yield on average invested assets decreased from approximately 2.9% for the three months ended September 30, 2011 to approximately 2.3% for the same period in 2012, driven mainly by reduced reinvestment rates and sales of higher-yielding investment securities. For the nine months ended September 30, 2012, our yield on average invested assets was 2.5% compared to approximately 3.0% for the same period in 2011.

Net Realized Gains. Net realized gains totaled $37,000 for the three months ended September 30, 2012 compared to $0.3 million for the same period in 2011. For the nine months ended September 30, 2012, net realized gains totaled $10.1 million compared to $0.7 million in the same period of 2011. The increase in net realized gains for the nine months ended September 30, 2012 resulted from the sale of investment securities in order to reduce exposure to interest rate risk and realize our tax capital loss carry forwards. The majority of proceeds from these sales were reinvested in taxable securities in a continuing effort to shorten the overall portfolio duration and reduce the municipal exposure.

Net cash used by investing activities was $2.3 million in the nine months ended September 30, 2012, compared to $2.2 million net cash provided in the same period in 2011. The increase in net cash used by investing activities was primarily driven by higher net investment purchase activity (purchases, net of sales and maturities).

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