A net loss of $18.4 million is reported
Eastern Insurance Holdings has reported a net loss of $18.4 million or $2.1 per diluted share in the fourth quarter of 2008, compared to a net income of $7.7 million or $0.76 per diluted share in the same period of 2007.
In the fourth quarter of 2008, the company’s revenue decreased $8 million to $30.1 million, compared to $38.1 million in the same period in 2007. The decrease in revenue is primarily due to a decrease in net investment income and an increase in net realised investment losses and losses from limited partnerships, partially offset by an increase in earned premium.
The net premiums earned increased $2.1 million to $36.4 million in the fourth quarter of 2008 from $34.3 million in the same period of 2007. Consolidated net premiums earned increased 6.1% in the fourth quarter of 2008.
Bruce Eckert, CEO of Eastern Insurance, said: For the second consecutive quarter, strong operating results in our core products were overshadowed by an increase in the reserves for losses and loss adjustment expenses in the run-off specialty reinsurance segment and the continued unprecedented deterioration of the financial markets.