A quarterly review of Company and industry news for Medical Mutual member-policyholders.
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The Advocate
First quarter 2007
Medical Mutual Reports Solid First Quarter Operating Results
Medical Mutual Insurance Company of Maine is pleased to report its operating results for the first fiscal quarter ended March 31, 2007.
Executive Vice President and Chief Financial Officer Domenic Restuccia commented, “All our policyholders should be commended for their part in helping the Company achieve such outstanding operating results. Truly, the dedication they have to their patients and their commitment to deliver the highest quality healthcare possible have significantly enhanced the Company’s bottom line. Our improved claims experience has been the single largest contributing factor in our exemplary financial performance, paving the way for our announced dividend in Maine, New Hampshire and Vermont. The dividend reflects one of the greatest benefits of a mutual company like ours – the ability to return excess premiums collected to policyholders when claims activity proves to be better-than-expected.”
Highlights and significant results for the first quarter 2007 include:
- Pre-Tax Income: Income before taxes was $1,450,000. This compares to $1,740,000 for the same period in 2006.
- Pre-Tax Operating Income: Pre-tax operating income (ignoring capital gains/losses) was $1,392,000, a decrease of $387,000 (22%) from that reported in the same period in 2006.
- Net Earned Premiums: Net earned premiums rose slightly to $10,834,000 from $10,633,000 reported in the same period in 2006.
- Losses on Claims: Losses were $6,388,000, a 12.5% decrease from the $7,302,000 reported in the same period in 2006.
- Insurance Operations: The Company reported a small underwriting loss of $441,000. This compares to an underwriting gain of $365,000 for the same period in 2006.
- Investment Income: Investment income was $1,833,000, an increase of $419,000 or 29.6% over the same period in 2006.
- Surplus: Surplus increased $1,244,000 to $73,562,000 since year-end 2006 because of positive net operating results for the quarter, an increase in the net unrealized capital gains in the equity portfolio and a reduction in non-admitted assets.