Mercer Insurance Group, Inc. Announces Fourth Quarter and 20

 

Monday, Mar 16,2009, 1:34:17 PM   Click:

Mercer Insurance Group, Inc. today reported its operating results for the year and quarter ended December 31, 2008.

4th quarter:
- Net income of $ 0.10 per diluted share, against $ 0.45 per diluted share for the prior year quarter
- Operating earnings of $ 0.54 per diluted share, against $ 0.48 per diluted share for the prior year quarter
- The GAAP combined ratio of 98.4% against 98.5% in the previous year
quarter
- Book value per diluted share of $ 22.21.

Andrew R. Chairman, President and CEO, commented, "We are pleased with the results of operations for the quarter are the strongest quarterly operating earnings per share ever recorded by the Company. The strong operating performance was partially offset by capital losses net realized, which were mainly of a provision for decline in fair value of the securities deemed other than temporary, and market adjustments for swaps interest rate on our trust preferred debt. Because the company deals with investment securities in its balance sheet at fair value, the recognition of other than temporary impairment losses do not change the company or shareholder value per share. "

Chairman added: "The economic conditions, particularly the effects of the slowdown in residential property as it applies to our West Coast business professionals, have had a negative impact on our direct premiums written. In preparation the impact on future net premiums earned, the Company has taken proactive steps to reduce and control expenses, including staff reductions and elimination of other expenses that we focus on keeping operations of profitability and increasing value. "

He concluded, "We continue to maintain a strong balance sheet. Our strategy of prudence, to invest in securities that provide an adequate return while protecting the capital has served us well during the market volatility of investments. Despite the sharp decline in equity markets, the overall results of our investment portfolio are strong and have helped the Company to increase the value of both the quarter and year, while many of our competitors have seen declining these periods.