Reserves for claims (Note 2): $40,560,000 That's about $16 per share. Will it be enough? I don't know, but it's good to have it invested and working on our (the stockholders') behalf while it's there!
"The provision for claims as a percentage of net premiums written was 23.4% for the second quarter of 2007, versus 10.6% for the same period in 2006. For the first six months of 2007 and 2006, the provision for claims as a percentage of net premiums written was 17.4% and 10.9%, respectively. The respective increases in the loss percentages in 2007 compared with 2006 reflect the negative impact of two large claims resulting from mortgage fraud and theft. The additional provision as a result of these two claims, in addition to the Company�s expected provision, was approximately $2.34 million. Currently, it is unknown to the Company if there will be any recovery related to these claims. If material occurrences of mortgage-related fraud and other similar types of claims continue, the Company�s ultimate loss estimates for recent policy years could increase. Loss provision rates are subject to variability and are reviewed and adjusted as claims experience develops."
Is it time to write management to encourage them to have the company buy back its shares below book value?