Affirmative Insurance Holdings Inc. (AFFM, Financial) filed Quarterly Report for the period ended 2009-09-30.
Affirmative Insurance Holdings' subsidiaryAffirmative Insurance Serviceshandles the marketingpolicy administrationclaim and actuarial functions for certain insurance carriers. Affirmative Insurance Holdings Inc. has a market cap of $60.12 million; its shares were traded at around $3.9 with a P/E ratio of 5.42 and P/S ratio of 0.13.
In our independent agency distribution channel, gross premiums written for the three and nine months ended September 30, 2009 increased $5.9 million and $7.2 million, respectively, or 20.5% and 7.6%, respectively, compared with the prior year. This increase was primarily due to the expansion of independent agency relationships.
Gross premiums written by our unaffiliated underwriting agencies for the three and nine months ended September 30, 2009 decreased $0.6 million and $3.8 million, respectively, or 9.0% and 16.4%, respectively, compared with the prior year. For strategic reasons, we have chosen to reduce our emphasis on growth in the unaffiliated underwriting agencies distribution channel.
We had a loss from continuing operations of $3.4 million and $0.2 million for the three and nine months ended September 30, 2009, respectively, compared with a loss from continuing operations of $3.5 million for the three months ended September 30, 2008 and income from continuing operations of $4.4 million for the nine months ended September 30, 2008. Significant items impacting the current year to date results were:
The largest component of revenue is net premiums earned on our insurance policies. Net premiums earned for the current quarter increased $1.1 million, or 1.2%, compared with the prior year quarter. Since insurance premiums are earned over the service period of the policies, the revenue in the current quarter includes premiums earned on insurance products written through our three distribution channels in both current and previous periods. Net premiums earned during the current quarter on policies sold through our affiliated underwriting agencies (including retail and independent agencies) increased by $2.2 million, or 2.8%. This increase is primarily due to the termination of our quota-share reinsurance agreement for Louisiana and Alabama business. Net premiums earned on insurance products sold through the unaffiliated underwriting agencies distribution channel decreased by $1.2 million, or 15.7%, compared with the prior year quarter.
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Affirmative Insurance Holdings' subsidiaryAffirmative Insurance Serviceshandles the marketingpolicy administrationclaim and actuarial functions for certain insurance carriers. Affirmative Insurance Holdings Inc. has a market cap of $60.12 million; its shares were traded at around $3.9 with a P/E ratio of 5.42 and P/S ratio of 0.13.
Highlight of Business Operations:
The Company completed its annual goodwill and indefinite lived intangible asset impairment analyses as of September 30, 2009. The Company reports under a single reporting segment and, as such, the goodwill analysis is measured under one reporting unit. Consistent with prior assessments, the fair value of the Companys reporting unit was determined using an internally developed discounted cash flow methodology and other relevant indicators of value available in the market place such as market transactions and trading values of similar companies. Based upon the results of the assessment, the Company concluded that the carrying values of goodwill and other intangible assets were not impaired as of September 30, 2009. As of September 30, 2008, the Company concluded that the carrying value of other intangible assets related to the Companys Florida operations exceeded their fair value, resulting in an impairment loss of $4.4 million for indefinite lived other intangible assets and $0.2 million for amortizing other intangible assets.In our independent agency distribution channel, gross premiums written for the three and nine months ended September 30, 2009 increased $5.9 million and $7.2 million, respectively, or 20.5% and 7.6%, respectively, compared with the prior year. This increase was primarily due to the expansion of independent agency relationships.
Gross premiums written by our unaffiliated underwriting agencies for the three and nine months ended September 30, 2009 decreased $0.6 million and $3.8 million, respectively, or 9.0% and 16.4%, respectively, compared with the prior year. For strategic reasons, we have chosen to reduce our emphasis on growth in the unaffiliated underwriting agencies distribution channel.
We had a loss from continuing operations of $3.4 million and $0.2 million for the three and nine months ended September 30, 2009, respectively, compared with a loss from continuing operations of $3.5 million for the three months ended September 30, 2008 and income from continuing operations of $4.4 million for the nine months ended September 30, 2008. Significant items impacting the current year to date results were:
The largest component of revenue is net premiums earned on our insurance policies. Net premiums earned for the current quarter increased $1.1 million, or 1.2%, compared with the prior year quarter. Since insurance premiums are earned over the service period of the policies, the revenue in the current quarter includes premiums earned on insurance products written through our three distribution channels in both current and previous periods. Net premiums earned during the current quarter on policies sold through our affiliated underwriting agencies (including retail and independent agencies) increased by $2.2 million, or 2.8%. This increase is primarily due to the termination of our quota-share reinsurance agreement for Louisiana and Alabama business. Net premiums earned on insurance products sold through the unaffiliated underwriting agencies distribution channel decreased by $1.2 million, or 15.7%, compared with the prior year quarter.
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