Gainsco, a company engaged in the property and casualty insurance business, has reported a net income of $0.2 million for the first quarter of 2008, compared with a net loss of $2.6 million for the same quarter of 2007.
Gross premiums written during the first quarter of 2008 were approximately 11% below the gross premiums written in the comparable 2007 period.
The company said that it continues to adjust and settle claims associated with its runoff lines. For the quarter, the company has not witnessed material development for claims occurring in prior accident years for runoff lines. During the first quarter of 2007, the company recorded favorable development for claims occurring in prior accident years for runoff lines of $1.4 million.
As regards its nonstandard personal auto business, the company recorded unfavorable development for claims occurring in prior accident years of $1.7 million during the first quarter of 2008. For the same quarter of 2007, the company recorded unfavorable development for claims occurring in prior accident years for nonstandard personal auto of $6.2 million. In the first quarter 2008, the unfavorable development for prior accident years included approximately $0.3 million related to extra-contractual claims.
As of March 31, 2008, Gainsco shareholders’ equity was $64.6 million, as against shareholders’ equity of $66 million at December 31, 2007.