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Medical Mutual Reports Operating Results for the Three Months
Ended March 31, 2009
Driven largely by the lowest number of reported first quarter claims since the high water mark years of 2002 and 2003, Medical Mutual posted solid financial results for the Three Months Ended March 31, 2009. The Company achieved improvements in numerous financial metrics compared to the same period in 2008. The bottom line - net income in the first quarter was $1,240,000.
Other highlights and significant results for the first three months of 2009 include:
- Income Before Taxes and Dividend: Income before taxes
and dividends was $1,479,000. This compares to $5,270,000
for the same period in 2008. (The decrease was due to
higher net capital gains resulting from a restructuring of the
investment portfolio in 2008.)
- Pre-Tax Operating Income: Pre-tax operating income (ignoring capital gains/losses) was $1,256,000, a $523,000 improvement over the $733,000 reported in the same period in 2008.
- Net Earned Premiums: Net earned premiums decreased slightly to $10,110,000 from the $10,453,000 reported in the same period in 2008. (The decrease is primarily due to rate reductions and relativity changes approved in 2008.)
- Losses on Claims: Net losses were $5,293,000, a decrease of 19.22% from the $6,552,000 reported in the same period in 2008.
- Insurance Operations: The Company reported an underwriting loss of $533,000 which is a significant improvement over the $993,000 loss reported in the same period in 2008. (The $460,000 improvement is primarily reflective of the decrease in losses mentioned above and reductions in depreciation, insurance, rental expenses and consulting fees.)
- Investment Income: Investment income was $1,771,000, an increase of $67,000 or 3.93 percent compared to the $1,704,000 reported in 2008.
- Surplus: Surplus increased $302,000 since year-end 2008 due to positive operating results and a $501,000 increase in deferred tax assets.
