-- Book value per share up 19.4 percent
-- Annual revenues increased 5.7 percent
-- Net income up 7.4 percent for 2007
LANSING, Mich., March 28 /PRNewswire/ -- Leading health care risk management and insurance provider FinCor Holdings Inc. reported its quarterly and year-end results for the period ended Dec. 31, 2007, highlighted by solid increases in revenues and net income.
Fiscal Year 2007 Highlights
The Company posted a 7.4 percent increase in net income on a 5.7 percent increase in revenues for the year ended 2007. FinCor reported total revenues of $97.2 million for 2007, up from $91.9 million in 2006. FinCor reported net income of $15.1 million, or $23.57 per diluted share during 2007, compared with $14.1 million, or $22.89 per diluted share, in the prior year.
The increase in revenues was primarily driven by the inclusion of its Washington Casualty Company (WCC) subsidiary's book of business for the full year. FinCor acquired WCC in October 2006. The Company also noted that positive cash flow from operations allowed for significant increases in the amount of investment income generated during the year.
The Company's combined ratio declined 10.7 percentage points to 80.7 percent for the year, from 91.4 percent for the year ended 2006. This improvement was primarily due to the recognition of $31 million of favorable reserve development in 2007, compared to $18 million of favorable reserve development during 2006. The combined ratio is the sum of incurred losses and underwriting expenses divided by earned premiums and is considered a key measure of an insurer's health and profitability. A combined ratio of less than 100 percent indicates the company is making an underwriting profit.
Other key factors contributing to the Company's success included the
April 2007 acquisition of the Insurance Services and Employee Safety and
Disability Management divisions of the
|SOURCE FinCor Holdings Inc.|
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