April 18, 2006
Western National Insurance Group Announces First Quarter 2006 Results
Western National Insurance Group today announced their 2006 financial results through March 31. Total Assets increased $12.4 million from 12/31/05, and now total $402.7 million. Net written premium increased $1 million, or 2%, from the same time last year.
The Loss Ratio remained stable (50.0% versus 49.6% at 3/31/05), as did Underwriting Expense (25.5% versus 25.2%), and Loss Adjustment Expense was lowered per plan (to 13.3% from 14.8%). This resulted in a Combined Ratio of 88.8%, as compared to 89.6% at the same time last year. With Underwriting Gain up 95% (to $4.89 million from $2.51 million), the Net Income After Tax was $5.4 million for the quarter, and ending Surplus was $139.65 million (up $22.3 million, or 19.0%, from first quarter 2005).
"2006 has continued the profitable trends of the last 4 years, once again exceeding expected US Property & Casualty industry performance," said Stuart Henderson, president & chief executive officer. "We expect continued careful and profitable growth for 2006 in all lines, consistent with our Business Plan. The affiliation with Farmers Home Group is on pace for a June 2006 closing, after which time we expect continued profitability for the newly pooled group of companies. We once again thank our employees, independent agent partners, loyal policyholders, and other business partners for joining with us to achieve these superior financial results."
Western National Insurance Group consists of two regional Property and Casualty Insurance companies with direct written premium in excess of $210 million. Western National Mutual Insurance Company is headquartered in Edina, Minnesota and writes in MN, WI, SD, ND and IA. Western National Assurance Company maintains offices in Seattle, Washington, and writes in WA and OR. The companies write both personal and commercial lines, and distribute their insurance products solely via the Independent Agency distribution system.
For further information, contact:
Mary S. Manley
SVP Corporate Affairs & Administration