Specialty Underwriters' Alliance, a property and casualty insurance services provider has reported net income of $3.5 million in the first quarter of 2008 as against $3 million in the comparable period of 2007.
For the first quarter of 2008, the company’s earnings per share were $0.22, compared to $0.20 per share for the first quarter of 2007. Net loss and loss adjustment expense ratio was 58.9% compared to 56.9% in the first quarter of 2007.
The increase was primarily driven by higher loss ratios in the company’s workers’ compensation book of business due to lower rates. This was partially offset by prior year reserve improvements of approximately $0.6 million primarily in the commercial automobile business.
Courtney Smith, president and CEO of Specialty Underwriters’ Alliance, said: The weakening economy has impacted both employment and construction activity resulting in lower exposure and premium in our workers’ compensation and a reduction in our contractors program. However, we believe significant growth opportunities exist that we expect to add to our top line this year beginning in the third and fourth quarters.