A quarterly review of Company and industry news for Medical Mutual member-policyholders.
About Us » Publications & Announcements
The Advocate
Archive
Medical Mutual Reports 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, 2008.
The financial performance of Medical Mutual continues to be
as solid as ever. Net Income increased $502,000 to $1,496,000
over the $994,000 reported for the same period in 2007. Loss
adjustment expenses moderated slightly to $2,050,000 from
$2,205,000 in 2007. But the big news of the quarter was when
the Board of Directors voted to declare another dividend, payable
as a premium credit to eligible policyholders in Maine, New
Hampshire and Vermont. This year’s dividend, which aggregates
approximately $3,898,000, was announced to all policyholders in
a letter from Company President and CEO Terrance J. Sheehan,
MD, dated March 14, 2008. In total, the Company has returned
premiums in excess of $23 million to policyholders since 1991
through 8 dividend declarations.
The Company continues to keep a watchful eye on new
claims activity as 97 new claims were filed in the first quarter of
2008, compared to 73 in 2007. In the first three month of 2008,
hospital claims increased by 4 to 18 (14 in 2007) and physicians’
claims increased by 18 to 56 (38 in 2007).
Other highlights and significant results for the first quarter
2008 include:
- Income before Taxes and Dividends: Income before taxes and dividends was $5,269,000. This compares to $1,451,000 for the same period in 2007.
- Pre-Tax Operating Income: Pre-tax operating income (ignoring capital gains/losses) was $732,000, a decrease of $679,000 from the $1,411,000 reported in 2007.
- Dividend Declaration: A dividend of $3,898,000, paid out in the form of premium credits to eligible policyholders in Maine, New Hampshire and Vermont, reflects one of the greatest benefits of a mutual company like ours – the ability to return excess premiums collected to member insureds when claims activity proves to be better than expected.
- Net Earned Premiums: Net earned premiums decreased slightly to $10,453,000 from $10,834,000 reported in the same period in 2007.
- Losses on Claims: Losses were $6,552,000, a slight increase over the $6,388,000 reported in the same period in 2007.
- Insurance Operations: The Company reported an underwriting loss of $993,000 which is $552,000 higher than the same period in 2007.
- Investment Income: Investment income was $1,704,000, a decrease of $129,000 or 7 percent compared to the $1,833,000 reported in 2007. The decrease is reflective of a higher balance invested in tax exempts which will lower the Company’s overall reported tax expense.
- Surplus: Surplus decreased $4,938,000 to $77,789,000 since year end 2007 primarily because of the declaration of the dividend, a reduction in unrealized capital gains and a decrease in deferred tax assets.
