Total gross premiums written in Q1 of 2009 decreased $7m to $112.2m compared with Q1 of 2008

Affirmative Insurance Holdings has reported a net income of $10.8m or $0.70 per share in the first quarter of 2009, compared to a net income of $4.6m or $0.30 per share in the first quarter of 2008.

In the first quarter of 2009, the company’s operating was $4.2m, a decrease of 64.5%, compared to $11.9m in the same period of 2008.

According to the company, total gross premiums written for the first quarter of 2009 decreased $7m or 5.9% to $112.2m, compared to the first quarter of 2008. Net investment income declined by $2.1m or 45.8% to $2.5m, compared to $4.6m in the first quarter of 2008.

It said that net investment income declined by $2.1m, or 45.8%, to $2.5m for the three months ended March 31, 2009, compared with $4.6m in the first quarter of 2008. The average investment yield in 2009 was 2.98% (4.17% on a taxable-equivalent basis), compared with 4.29% (6.00% on a taxable-equivalent basis) in 2008.

Losses and loss adjustment expenses for the three months ended March 31, 2009 decreased $1.7m, or 2.4%, to 74.7% of net earned premium (the loss ratio), compared with a loss ratio of 75.2% in the first quarter of 2008.

Affirmative Insurance Holdings Inc. is a distributor and producer of non-standard personal automobile insurance policies and related products and services for individual consumers in targeted geographic markets. Non-standard personal automobile insurance policies provide coverage to drivers who find it difficult to obtain insurance from standard automobile insurance companies due to their lack of prior insurance, age, driving record, limited financial resources or other factors.