FinCor Holdings Posts Double-Digit Increases in Revenue and Net Income for Thi...(HA Service Corporation. FinCor Holdings ...),Health

"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.

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