Specialty Underwriters' Alliance, Inc. Reports 2007 Fourth Quarter and Full Ye...($29.7 $149.2 $108.6 Pre-tax inc...),Health

Pre-tax income 3.2 3.0 12.8 8.7

Federal income tax (expense) - (.1) (0.2) (0.3)

Net income (loss) $3.2 $2.9 $12.6 $8.4

Key ratios

Net loss and loss adjustment

expense ratio 60.5 % 52.1 % 59.0 % 56.5 %

Ratio of acquisition expenses to

earned premiums 22.8 % 27.0 % 24.0 % 23.4 %

Ratio of all other expenses to

gross written premiums 13.6 % 11.7 % 14.1 % 13.0 %

Net income (loss) per share

Basic and diluted $0.20 $0.18 $0.82 $0.55

Weighted average common shares

outstanding (basic and diluted) 15.4 15.4 15.4 15.4

Summary Financial Data

(in millions, except per share data)

As of As of

December 31, December 31,

Assets 2007 2006

Investments $229.4 $164.1

Cash 1.0 2.4

Insurance premiums receivable 68.9 68.3

Reinsurance recoverable on unpaid loss and loss

adjustment expenses* 77.2 81.0

Prepaid reinsurance premiums 0.6 3.6

Investment income accrued 1.9 1.6

Equipment and capitalized software at cost (less

accumulated depreciation of $8.9 and $3.9) 12.8 8.6

Intangible assets 10.7 10.7

Deferred acquisition costs
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