LANSING, Mich., Nov. 12 /PRNewswire/ -- Leading health care risk management and insurance provider FinCor Holdings Inc. released its third quarter results for the period ended Sept. 30, 2007, including significant increases in net income for the quarter and first nine months of the year.
The privately held Lansing, Mich.-based provider of medical professional liability insurance and integrated risk management products and services for health care providers and institutions posted an 18.8 percent increase in net income for the third quarter. FinCor reported net income of $4.9 million, or $7.82 per diluted share, compared with net income of $4.1 million, or $7.03 per diluted share, for the same quarter last year.
FinCor reported total revenues of $25.8 million in the quarter, up 29.1 percent from the prior year. The Company said the improved top- and bottom- line results were from the combination of increased revenue growth in its FinCor Solutions and Washington Casualty Company subsidiaries, along with the improved profitability of MHA Insurance Company. The Company also noted its solid year-to-date returns on its investment portfolio as an additional contributing factor.
Net income for the nine months ended Sept. 30, 2007, increased 35.1 percent to $11.5 million, or $18.45 per diluted share, up from $8.5 million, or $14.43 per diluted share, for the first nine months of 2006. Total nine- month revenues increased 4.6 percent to $72.6 million, compared to $69.4 million in 2006.
Annualized return on common equity for the first nine months of 2007 was 16.3 percent compared to 14.6 percent for the first nine months of 2006. Total assets have also increased 10.7 percent since the start of 2007.
Key factors contributing to the Company's success in 2007 include the October 2006 acquisition of Washington Casualty Company and the May 2007 acquisition of the Insurance Services and Employee Safety and Disability Management divisions of the MHA Service Corporation. FinCor Holdings noted that while it faces ongoing price-based competition in its markets, its overall renewal rate continues to exceed 90 percent.
"We are extremely pleased with the Company's performance," said President and CEO Thomas Dickinson. "We continue to grow our premium writings and other revenue sources, improve profitability and maximize shareholder value in the face of a softening marketplace. Our acquisitions within the last year have enhanced our ability to grow and diversify our revenues in meaningful and profitable ways. Additionally, positive cash flow from operations has resulted in a significant increase in the amount of investment income we are able to generate, which is an important component of our overall earnings due to the long-tailed nature of the premiums we write."
The Company's combined ratio declined 12 percentage points to 84.1 percent for the first nine months of 2007 from 96.1 percent for the first nine months of 2006. This improvement was primarily due to the recognition of $10 million of favorable reserve development through September 2007, compared to $5 million of favorable reserve development through September 2006. The combined ratio is the sum of incurred losses and expenses divided by earned premiums and is considered a key measure of an insurer's health. A combined ratio of less than 100 percent indicates the company is making an underwriting profit.
In September, FinCor Holdings was named to the first-ever Inc. 5,000 list of the fastest-growing private companies in the United States. Inc. reported FinCor had an impressive three-year growth rate of more than 74 percent on revenues of $52.8 million. From 2003 to 2006, FinCor saw an increase in revenue of 74.1 percent, to $91.9 million in 2006. FinCor was ranked 3,740 overall, and 26th relative to other insurance companies on the Inc. 5,000 list. The Company was also among the top 10 in revenue in the insurance category.
About FinCor Holdings
FinCor Holdings Inc. is a Lansing, Mich.-based integrated risk management corporation designed to meet the risk financing, risk transfer and clinical risk management needs of today's health care providers.
FinCor Holdings and its subsidiaries -- FinCor Solutions, The Risk Management and Patient Safety Institute, MHA Insurance Company, Washington Casualty Company and Capital Risk Solutions -- provide industry-leading products and support services, including medical professional liability insurance, alternative risk financing programs, workers' compensation and risk management solutions. FinCor Holdings has built a national presence and outstanding reputation for assisting hospitals and health care providers in designing effective clinical risk management programs.
For more information, visit http://www.fincorholdings.com.
|SOURCE FinCor Holdings Inc.|
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