National General Holdings Corp. Reports Third Quarter 2020 Results

National General Holdings Corp
·22 min read

NEW YORK, Oct. 29, 2020 (GLOBE NEWSWIRE) -- National General Holdings Corp. (Nasdaq: NGHC) reported third quarter 2020 net income of $102.1 million or $0.88 per diluted share, compared to net income of $63.3 million or $0.54 per diluted share in the third quarter of 2019. Third quarter 2020 operating earnings (non-GAAP) (1) were $105.2 million or $0.90 per diluted share compared to $68.2 million or $0.59 per diluted share in the third quarter of 2019.

Third Quarter 2020 Highlights versus Third Quarter 2019*

  • Gross written premium grew by $57.9 million to $1,374.7 million compared to the prior years quarter. Our P&C segment growth of 2.1%, was primarily driven by our personal auto product line; and our A&H domestic segment growth of 23.3%, excluding our previously sold A&H international business.

  • The overall combined ratio (11,12) was 89.2% compared to 92.5% in the prior years quarter, excluding non-cash amortization of intangible assets.

    The P&C segment reported a decrease in the combined ratio to 92.4% from 97.0% in the prior years quarter driven by continued strong underwriting and lower claims frequency. The P&C combined ratio includes prior year unfavorable loss development of $0.9 million compared to $14.9 million unfavorable loss development in the prior years quarter, and $87.1 million of pre-tax catastrophe losses related to weather-related events compared to $11.5 million of catastrophe losses in the prior years quarter.

      The A&H segment reported an increase in the combined ratio to 71.8% from 70.2% in the prior years quarter driven by the absence of our international business which was sold in the fourth quarter of 2019. The A&H service and fee income increased 39.0%. The A&H combined ratio includes $5.8 million of favorable loss development compared to $18.8 million of favorable loss development in the prior years quarter.

  • Stockholders equity was $3.1 billion and fully diluted book value per share was $22.74 at September 30, 2020, growth of 17.1% and 19.3%, respectively, from December 31, 2019. Excluding accumulated other comprehensive income, fully diluted book value per share was $21.07 at September 30, 2020, growth of 14.4%, from December 31, 2019. Our trailing twelve-month operating return on average equity (ROE) (13) was 19.0% as of September 30, 2020.

  • Third quarter of 2020 operating earnings (non-GAAP) (1) excludes the following, net of tax: $2.1 million or $0.02 per share loss on equity method investments, $5.3 million or $0.05 per share of net gain on investments, $3.5 million or $0.03 per share of non-cash amortization of intangible assets, and $2.8 million or $0.02 per share of other expenses reflecting a M&A advisory cost.

  • On September 30, 2020, the Companys stockholders approved the proposal to merge with The Allstate Corporation. The merger remains subject to regulatory approval and the satisfaction of other customary conditions. The Company expects the merger to close in the first quarter of 2021.

Barry Karfunkel, National Generals CEO, stated: Im proud of the earnings National General was able to generate during a quarter that was highlighted by many catastrophic weather events. Were excited with how well be able to leverage our platform across a larger entity once our pending transaction closes.

*NOTE: Unless specified otherwise, discussion of our third quarter 2020 and 2019 results do not include financial results from the Reciprocal Exchanges, which are presented within our consolidated financial results within this release but are not included in net income available to NGHC common stockholders.

Overview of Third Quarter 2020 as Compared to Third Quarter 2019

  • Property & Casualty - Gross written premium grew by 2.1% to $1,178.8 million, net written premium increased by 29.4% to $1,061.4 million, and net earned premium increased by 14.7% to $949.1 million. The P&C net earned premium increase was driven by lower cession to the quota shares, and growth in our personal auto, homeowners, and lender-placed product lines. Service and fee income was $109.8 million compared to $115.6 million in the prior years quarter. Excluding non-cash amortization of intangible assets, the combined ratio (11,12) was 92.4% with a loss and LAE ratio of 68.9% and an expense ratio (10,12) of 23.5%, versus a prior year combined ratio of 97.0% with a loss and LAE ratio of 75.8% and an expense ratio of 21.2%. The loss and LAE ratio was impacted by pre-tax catastrophe losses of approximately $87.1 million primarily related to weather-related events in the third quarter of 2020, compared to $11.5 million of losses in the third quarter of 2019. Unfavorable loss development was $0.9 million in the third quarter of 2020 primarily driven by small business auto, compared to unfavorable loss development of $14.9 million in the third quarter of 2019.
     

  • Accident & Health - Gross written premium grew by $33.4 million compared to the prior years quarter due to growth in both our small group self-funded and individual products. Excluding our A&H international business, our A&H domestic segment grew by 23.3% to $195.9 million. Service and fee income grew 39.0% to $88.6 million compared to $63.7 million in the prior years quarter. Excluding non-cash amortization of intangible assets, the combined ratio (11,12) was 71.8% with a loss and LAE ratio of 44.4% and an expense ratio (10,12) of 27.4%, versus a prior year combined ratio of 70.2% with a loss and LAE ratio of 41.8% and an expense ratio of 28.4%. The current quarter loss and LAE ratio reflects higher medical claims. Favorable loss development was $5.8 million in the third quarter of 2020, compared to favorable loss development of $18.8 million in the third quarter of 2019.
     

  • Reciprocal Exchanges - Results for the Reciprocal Exchanges are not included in net income available to NGHC common stockholders. Gross written premium was $98.4 million, net written premium was $29.5 million, and net earned premium was $54.1 million. Reciprocal Exchanges combined ratio (11,12) excluding non-cash amortization of intangible assets was 111.7% with a loss and LAE ratio of 78.5% and an expense ratio (10,12) of 33.2%.

Third quarter of 2020 net investment income decreased to $28.0 million, compared to $33.5 million in the third quarter of 2019. Total investments and cash and cash equivalents (including restricted cash) were $5.4 billion as of September 30, 2020. Unrealized gains on investments, included in accumulated other comprehensive income, increased to a $195.0 million gain at September 30, 2020, from a $74.5 million gain at December 31, 2019, primarily due to market improvement.

Interest expense was $11.3 million, down from $12.9 million in the prior years quarter. Debt was $679.4 million at September 30, 2020, compared to $686.0 million at December 31, 2019.

The third quarter of 2020 provision for income taxes was $26.7 million and the effective tax rate for the quarter was 19.5% compared with income taxes of $19.3 million and an effective rate of 21.3% in the third quarter of 2019.

Stockholders equity was $3,103.8 million at September 30, 2020, growth of 17.1% from $2,649.5 million at December 31, 2019. Fully diluted book value per share was $22.74 at September 30, 2020, growth of 19.3% from $19.06 at December 31, 2019. Excluding accumulated other comprehensive income, fully diluted book value per share was $21.07 at September 30, 2020, growth of 14.4%, from December 31, 2019. Our trailing twelve-month operating return on average equity (ROE) (13) was 19.0% as of September 30, 2020.

Year-to-Date P&C Segment Notable Large Losses

Year

 

Quarter

 

Event

 

P&C Notable Large
Losses and LAE 
($ millions)

 

P&C Loss and
LAE Ratio
Points*

 

EPS
Impact
After Tax

2020

 

Q3

 

Weather-related Events

 

$87.1

 

9.2%

 

$0.59

2020

 

Q2

 

Weather-related Events

 

$35.3

 

4.2%

 

$0.24

2020

 

Q1

 

Weather-related Events

 

$8.1

 

0.9%

 

$0.06

 

 

 

 

 

 

 

 

 

 

 

2019

 

Q3

 

Weather-related Events

 

$11.5

 

1.4%

 

$0.08

2019

 

Q2

 

Weather-related Events

 

$18.4

 

2.2%

 

$0.13

2019

 

Q1

 

Winter Weather

 

$12.1

 

1.6%

 

$0.08

* Loss and LAE ratio points related to P&C net earned premium in quarter the loss event was recorded.

About National General Holdings Corp.

National General Holdings Corp. (NASDAQ: NGHC), headquartered in New York City, is a specialty personal lines insurance holding company. National General traces its roots to 1939, has a financial strength rating of A- (excellent) from A.M. Best, and provides personal and commercial automobile, homeowners, umbrella, recreational vehicle, motorcycle, lender-placed, supplemental health and other niche insurance products.

Forward Looking Statements

This news release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Companys current expectations and beliefs concerning future developments and their potential effects on the Company. Forward-looking statements can generally be identified by the use of forward-looking terminology, such as may, will, plan, expect, project, intend, estimate, anticipate and believe or their variations or similar terminology. There can be no assurance that actual developments will be those anticipated by us. Actual results may differ materially from those expressed or implied in these statements as a result of significant risks and uncertainties, including, but not limited to, plans and expectations related to our proposed merger with The Allstate Corporation (Allstate), including anticipated timing for closing of the merger, the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement with Allstate, the inability to complete the proposed merger due to the failure to obtain regulatory approval for the proposed merger or the failure to satisfy other conditions to completion of the proposed merger, the possibility that competing offers will be made, non-receipt of expected payments from insureds or reinsurers, changes in interest rates, a downgrade in the financial strength ratings of our insurance subsidiaries, the potential effect of changes in LIBOR reporting practices, the effects of pandemics or other widespread health problems such as the ongoing COVID-19 pandemic on our business, including our investment portfolio, and the national and global economy generally, the effect of the performance of financial markets on our investment portfolio, our ability to accurately underwrite and price our products and to maintain and establish accurate loss reserves, estimates of the fair value of investments, development of claims and the effect on loss reserves, large loss activity including hurricanes and wildfires, the cost and availability of reinsurance coverage, the effects of emerging claim and coverage issues, the effect of unpredictable catastrophic losses, changes in the demand for our products, our degree of success in integrating acquired businesses, the effect of general economic conditions, state and federal legislation, the effects of tax reform, regulations and regulatory investigations into industry practices, risks associated with conducting business outside the United States, developments relating to existing agreements, disruptions to our business relationships with third party vendors or agencies, breaches in data security or other disruptions involving our technology, heightened competition, changes in pricing environments, and changes in asset valuations. The forward-looking statements contained in this news release are made only as of the date of this release. The Company undertakes no obligation to publicly update any forward-looking statement except as may be required by law. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those projected, is contained in the Companys filings with the Securities and Exchange Commission.

Income Statement - Third Quarter
$ in thousands
(Unaudited)

 

 

Three Months Ended September 30,

 

 

2020

 

 

2019

 

 

 

NGHC

 

Reciprocal
Exchanges

 

Consolidated

 

 

NGHC

 

Reciprocal
Exchanges

 

Consolidated

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premium

 

$

1,374,740

 

 

$

98,387

 

 

$

1,473,127

 

 

 

$

1,316,890

 

 

$

118,267

 

 

 

$

1,435,157

 

 

 

Net written premium

 

1,235,765

 

 

29,491

 

 

1,265,256

 

 

 

967,319

 

 

67,285

 

 

 

1,034,604

 

 

 

Net earned premium

 

1,124,475

 

 

54,098

 

 

1,178,573

 

 

 

996,521

 

 

57,117

 

 

 

1,053,638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ceding commission income

 

21,772

 

 

8,952

 

 

30,724

 

 

 

42,521

 

 

15,066

 

 

 

57,587

 

 

 

Service and fee income

 

198,353

 

 

1,628

 

 

184,969

 

(A)

 

179,293

 

 

1,585

 

 

 

161,626

 

 

(G)

Net investment income

 

28,019

 

 

2,254

 

 

28,904

 

(B)

 

33,451

 

 

2,160

 

 

 

33,740

 

 

(H)

Net gain (loss) on investments

 

6,736

 

 

13,103

 

 

19,839

 

 

 

1,718

 

 

(137

)

 

 

1,581

 

 

 

Total revenues

 

$

1,379,355

 

 

$

80,035

 

 

$

1,443,009

 

(C)

 

$

1,253,504

 

 

$

75,791

 

 

 

$

1,308,172

 

 

(I)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expense

 

$

731,722

 

 

$

42,442

 

 

$

774,164

 

 

 

$

698,064

 

 

$

47,270

 

 

 

$

745,334

 

 

 

Acquisition costs and other underwriting expenses

 

252,444

 

 

16,201

 

 

268,645

 

 

 

193,521

 

 

15,569

 

 

 

209,090

 

 

 

General and administrative expenses

 

247,241

 

 

12,382

 

 

244,611

 

(D)

 

258,583

 

 

24,533

 

 

 

263,864

 

 

(J)

Interest expense

 

11,292

 

 

1,369

 

 

11,292

 

(E)

 

12,898

 

 

1,871

 

 

 

12,898

 

 

(K)

Total expenses

 

$

1,242,699 

 

 

$

72,394 

 

 

$

1,298,712

 

(F)

 

$

1,163,066

 

 

$

89,243

 

 

 

$

1,231,186

 

 

(L)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before provision (benefit) for income taxes

 

$

136,656

 

 

$

7,641

 

 

$

144,297

 

 

 

$

90,438

 

 

$

(13,452

)

 

 

$

76,986

 

 

 

Provision (benefit) for income taxes

 

26,687

 

 

741

 

 

27,428

 

 

 

19,284

 

 

(2,537

)

 

 

16,747

 

 

 

Net income (loss) before non-controlling interest and dividends on preferred shares

 

109,969

 

 

6,900

 

 

116,869

 

 

 

71,154

 

 

(10,915

)

 

 

60,239

 

 

 

Less: net income (loss) attributable to noncontrolling interest

 

 

 

6,900

 

 

6,900

 

 

 

 

 

(10,915

)

 

 

(10,915

)

 

 

Net income before dividends on preferred shares

 

109,969

 

 

 

 

109,969

 

 

 

71,154

 

 

 

 

 

71,154

 

 

 

Less: dividends on preferred shares

 

7,875

 

 

 

 

7,875

 

 

 

7,875

 

 

 

 

 

7,875

 

 

 

Net income available to common stockholders

 

$

102,094

 

 

$

 

 

$

102,094

 

 

 

$

63,279

 

 

$

 

 

 

$

63,279

 

 

 

NOTES : Consolidated column includes eliminations as follows: (A) $(15,012), (B) $(1,369), (C) $(16,381), (D) $(15,012), (E) $(1,369), (F) $(16,381), (G) $(19,252), (H) $(1,871), (I) $(21,123), (J) $(19,252), (K) $(1,871) and (L) $(21,123).

Income Statement - Year To Date
$ in thousands
(Unaudited)

 

 

Nine Months Ended September 30,

 

 

2020

 

 

2019

 

 

 

NGHC

 

Reciprocal
Exchanges

 

Consolidated

 

 

NGHC

 

Reciprocal
Exchanges

 

Consolidated

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premium

 

$

4,002,606

 

 

$

288,676

 

 

$

4,291,282

 

 

 

$

3,913,861

 

 

 

$

344,982

 

 

 

$

4,258,843

 

 

 

Net written premium

 

3,347,713

 

 

142,054

 

 

3,489,767

 

 

 

3,022,206

 

 

 

172,460

 

 

 

3,194,666

 

 

 

Net earned premium

 

3,152,865

 

 

166,481

 

 

3,319,346

 

 

 

2,899,041

 

 

 

149,405

 

 

 

3,048,446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ceding commission income

 

93,893

 

 

33,776

 

 

127,669

 

 

 

136,867

 

 

 

50,446

 

 

 

187,313

 

 

 

Service and fee income

 

581,533

 

 

5,121

 

 

545,002

 

(A)

 

525,730

 

 

 

4,471

 

 

 

476,041

 

 

(G)

Net investment income

 

88,289

 

 

6,449

 

 

90,322

 

(B)

 

103,683

 

 

 

6,454

 

 

 

102,316

 

 

(H)

Net gain (loss) on investments

 

6,179

 

 

11,957

 

 

18,136

 

 

 

(2,790

)

 

 

(837

)

 

 

(3,627

)

 

 

Total revenues

 

$

3,922,759

 

 

$

223,784

 

 

$

4,100,475

 

(C)

 

$

3,662,531

 

 

 

$

209,939

 

 

 

$

3,810,489

 

 

(I)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expense

 

$

1,951,792

 

 

$

114,816

 

 

$

2,066,608

 

 

 

$

1,988,094

 

 

 

$

124,584

 

 

 

$

2,112,678

 

 

 

Acquisition costs and other underwriting expenses

 

689,467

 

 

36,798

 

 

726,265

 

 

 

582,805

 

 

 

32,329

 

 

 

615,134

 

 

 

General and administrative expenses

 

765,438

 

 

50,803

 

 

774,589

 

(D)

 

746,243

 

 

 

67,642

 

 

 

759,725

 

 

(J)

Interest expense

 

34,851

 

 

4,416

 

 

34,851

 

(E)

 

38,822

 

 

 

7,821

 

 

 

38,822

 

 

(K)

Total expenses

 

$

3,441,548

 

 

$

206,833

 

 

$

3,602,313

 

(F)

 

$

3,355,964

 

 

 

$

232,376

 

 

 

$

3,526,359

 

 

(L)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before provision (benefit) for income taxes

 

$

481,211

 

 

$

16,951

 

 

$

498,162

 

 

 

$

306,567

 

 

 

$

(22,437

)

 

 

$

284,130

 

 

 

Provision (benefit) for income taxes

 

103,909

 

 

2,198

 

 

106,107

 

 

 

65,779

 

 

 

(4,285

)

 

 

61,494

 

 

 

Net income (loss) before non-controlling interest and dividends on preferred shares

 

377,302

 

 

14,753

 

 

392,055

 

 

 

240,788

 

 

 

(18,152

)

 

 

222,636

 

 

 

Less: net income (loss) attributable to noncontrolling interest

 

 

 

14,753

 

 

14,753

 

 

 

 

 

 

(18,152

)

 

 

(18,152

)

 

 

Net income before dividends on preferred shares

 

377,302

 

 

 

 

377,302

 

 

 

240,788

 

 

 

 

 

 

240,788

 

 

 

Less: dividends on preferred shares

 

24,675

 

 

 

 

24,675

 

 

 

24,675

 

 

 

 

 

 

24,675

 

 

 

Net income available to common stockholders

 

$

352,627

 

 

$

 

 

$

352,627

 

 

 

$

216,113

 

 

 

$

 

 

 

$

216,113

 

 

 

NOTES : Consolidated column includes eliminations as follows: (A) $(41,652), (B) $(4,416), (C) $(46,068), (D) $(41,652), (E) $(4,416), (F) $(46,068) (G) $(54,160), (H) $(7,821), (I) $(61,981), (J) $(54,160), (K) $(7,821) and (L) $(61,981).

Earnings and Per Share Data
$ in thousands, except shares and per share data
(Unaudited)

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

2020

 

2019

Net income available to common stockholders

$

102,094

 

 

$

63,279

 

 

$

352,627

 

 

$

216,113

 

Basic net income per common share

$

0.90

 

 

$

0.56

 

 

$

3.11

 

 

$

1.91

 

Diluted net income per common share

$

0.88

 

 

$

0.54

 

 

$

3.04

 

 

$

1.87

 

 

 

 

 

 

 

 

 

Operating earnings attributable to NGHC (non-GAAP) (1)

$

105,174

 

 

$

68,237

 

 

$

368,576

 

 

$

236,093

 

Basic operating earnings per common share (non-GAAP) (1)

$

0.93

 

 

$

0.60

 

 

$

3.25

 

 

$

2.09

 

Diluted operating earnings per common share (non-GAAP) (1)

$

0.90

 

 

$

0.59

 

 

$

3.17

 

 

$

2.03

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.05

 

 

$

0.05

 

 

$

0.15

 

 

$

0.13

 

 

 

 

 

 

 

 

 

Weighted average number of basic shares outstanding

113,418,411

 

 

113,263,367

 

 

113,505,785

 

 

113,153,121

 

Weighted average number of diluted shares outstanding

116,666,374

 

 

116,138,489

 

 

116,231,852

 

 

116,087,524

 

Shares outstanding, end of period

113,475,176

 

 

113,313,042

 

 

 

 

 

Fully diluted shares outstanding, end of period

116,723,139

 

 

116,188,164

 

 

 

 

 

Book value per share

$

23.39

 

 

$

18.62

 

 

 

 

 

Fully diluted book value per share

$

22.74

 

 

$

18.16

 

 

 

 

 

Reconciliation of Net Income to Operating Earnings (Non-GAAP) (1)(13)
$ in thousands, except per share data
(Unaudited)

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

2020

 

2019

Net income available to common stockholders

$

102,094

 

 

$

63,279

 

 

$

352,627

 

 

$

216,113

 

Add (subtract):

 

 

 

 

 

 

 

Equity in losses of equity method investments

2,635

 

 

1,205

 

 

6,523

 

 

1,408

 

Net (gain) loss on investments

(6,736

)

 

(1,718

)

 

(6,179

)

 

2,790

 

Non-cash amortization of intangible assets

4,427

 

 

6,788

 

 

16,272

 

 

21,093

 

M&A advisory cost

3,573

 

 

 

 

3,573

 

 

 

Income tax benefit

(819

)

 

(1,317

)

 

(4,240

)

 

(5,311

)

Operating earnings attributable to NGHC (non-GAAP) (1)

$

105,174

 

 

$

68,237

 

 

$

368,576

 

 

$

236,093

 

 

 

 

 

 

 

 

 

Operating earnings per common share (non-GAAP) (1) :

 

 

 

 

 

 

 

Basic operating earnings per common share (non-GAAP) (1)

$

0.93

 

 

$

0.60

 

 

$

3.25

 

 

$

2.09

 

Diluted operating earnings per common share (non-GAAP) (1)

$

0.90

 

 

$

0.59

 

 

$

3.17

 

 

$

2.03

 

Balance Sheet
$ in thousands
(Unaudited)

 

 

September 30, 2020

 

 

December 31, 2019

 

ASSETS

 

NGHC

 

Reciprocal
Exchanges

 

Consolidated

 

 

NGHC

 

Reciprocal
Exchanges

 

Consolidated

 

Total investments (2)

 

$

5,119,295

 

 

 

$

331,076

 

 

 

$

5,342,799

 

 

(A)

 

$

4,632,960

 

 

$

329,494

 

 

 

$

4,854,998

 

 

(H)

Cash and cash equivalents, including restricted cash

 

250,602

 

 

 

741

 

 

 

251,343

 

 

 

 

163,480

 

 

983

 

 

 

164,463

 

 

 

Premiums and other receivables, net

 

1,528,240

 

 

 

70,076

 

 

 

1,598,316

 

 

 

 

1,373,089

 

 

55,859

 

 

 

1,428,948

 

 

 

Reinsurance balances

 

1,515,120

 

 

 

230,692

 

 

 

1,745,812

 

 

 

 

1,745,036

 

 

225,019

 

 

 

1,970,055

 

 

 

Intangible assets, net

 

342,884

 

 

 

3,090

 

 

 

345,974

 

 

 

 

362,598

 

 

3,225

 

 

 

365,823

 

 

 

Goodwill

 

179,328

 

 

 

 

 

 

179,328

 

 

 

 

179,328

 

 

 

 

 

179,328

 

 

 

Other (3)

 

775,595

 

 

 

24,216

 

 

 

760,684

 

 

(B)

 

798,675

 

 

29,070

 

 

 

792,919

 

 

(I)

Total assets

 

$

9,711,064

 

 

 

$

659,891

 

 

 

$

10,224,256

 

 

(C)

 

$

9,255,166

 

 

$

643,650

 

 

 

$

9,756,534

 

 

(J)

LIABILITIES AND STOCKHOLDERS EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unpaid loss and loss adjustment expense reserves

 

$

2,688,969

 

 

 

$

208,496

 

 

 

$

2,897,465

 

 

 

 

$

2,680,628

 

 

$

205,786

 

 

 

$

2,886,414

 

 

 

Unearned premiums and other revenue

 

2,117,887

 

 

 

219,582

 

 

 

2,337,469

 

 

 

 

2,059,688

 

 

252,553

 

 

 

2,312,241

 

 

 

Reinsurance payable

 

350,717

 

 

 

51,711

 

 

 

402,428

 

 

 

 

527,155

 

 

35,689

 

 

 

562,844

 

 

 

Accounts payable and accrued expenses

 

412,540

 

 

 

46,731

 

 

 

420,144

 

 

(D)

 

306,869

 

 

43,323

 

 

 

315,366

 

 

(K)

Debt

 

679,436

 

 

 

107,572

 

 

 

679,436

 

 

(E)

 

686,006

 

 

107,456

 

 

 

686,006

 

 

(L)

Other

 

357,745

 

 

 

44,004

 

 

 

401,749

 

 

 

 

345,366

 

 

30,803

 

 

 

376,169

 

 

 

Total liabilities

 

$

6,607,294

 

 

 

$

678,096

 

 

 

$

7,138,691

 

 

(F)

 

$

6,605,712

 

 

$

675,610

 

 

 

$

7,139,040

 

 

(M)

Stockholders equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock (4)

 

$

450,000

 

 

 

$

 

 

 

$

450,000

 

 

 

 

$

450,000

 

 

$

 

 

 

$

450,000

 

 

 

Common stock (5)

 

1,139

 

 

 

 

 

 

1,139

 

 

 

 

1,134

 

 

 

 

 

1,134

 

 

 

Treasury stock, at cost (6)

 

(8,482

)

 

 

 

 

 

(8,482

)

 

 

 

 

 

 

 

 

 

 

 

Additional paid-in capital

 

1,073,288

 

 

 

 

 

 

1,073,288

 

 

 

 

1,065,634

 

 

 

 

 

1,065,634

 

 

 

Accumulated other comprehensive income

 

194,953

 

 

 

 

 

 

194,953

 

 

 

 

74,548

 

 

 

 

 

74,548

 

 

 

Retained earnings

 

1,392,872

 

 

 

 

 

 

1,392,872

 

 

 

 

1,058,138

 

 

 

 

 

1,058,138

 

 

 

Total National General Holdings Corp. stockholders equity

 

3,103,770

 

 

 

 

 

 

3,103,770

 

 

 

 

2,649,454

 

 

 

 

 

2,649,454

 

 

 

Noncontrolling interest

 

 

 

 

(18,205

)

 

 

(18,205

)

 

 

 

 

 

(31,960

)

 

 

(31,960

)

 

 

Total stockholders equity

 

$

3,103,770

 

 

 

$

(18,205

)

 

 

$

3,085,565 

 

 

 

 

$

2,649,454

 

 

$

(31,960

)

 

 

$

2,617,494

 

 

 

Total liabilities and stockholders equity

 

$

9,711,064

 

 

 

$

659,891

 

 

 

$

10,224,256 

 

 

(G)

 

$

9,255,166

 

 

$

643,650

 

 

 

$

9,756,534

 

 

(N)

NOTES : Consolidated column includes eliminations as follows: (A) $(107,572), (B) $(39,127), (C) $(146,699), (D) $(39,127), (E) $(107,572), (F) $(146,699), (G) $(146,699) (H) $(107,456), (I) $(34,826), (J) $(142,282), (K) $(34,826), (L) $(107,456), (M) $(142,282) and (N) $(142,282).

Segment Information - Third Quarter
$ in thousands
(Unaudited)

 

 

Three Months Ended September 30,

 

 

2020

 

 

2019

 

 

P&C

 

A&H

 

NGHC

 

 

Reciprocal
Exchanges

 

 

P&C

 

A&H

 

NGHC

 

 

Reciprocal
Exchanges

Gross written premium

 

$

1,178,803

 

 

$

195,937

 

 

$

1,374,740

 

 

 

$

98,387

 

 

 

 

$

1,154,335

 

 

$

162,555

 

 

$

1,316,890

 

 

 

$

118,267

 

 

Net written premium

 

1,061,435

 

 

174,330

 

 

1,235,765

 

 

 

29,491

 

 

 

 

819,970

 

 

147,349

 

 

 

967,319

 

 

 

67,285

 

 

Net earned premium

 

949,071

 

 

175,404

 

 

1,124,475

 

 

 

54,098

 

 

 

 

827,618

 

 

168,903

 

 

996,521

 

 

 

57,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ceding commission income

 

21,567

 

 

205

 

 

21,772

 

 

 

8,952

 

 

 

 

40,260

 

 

2,261

 

 

42,521

 

 

 

15,066

 

 

Service and fee income

 

109,756

 

 

88,597

 

 

198,353

 

 

 

1,628

 

 

 

 

115,557

 

 

63,736

 

 

179,293

 

 

 

1,585

 

 

Total underwriting revenues

 

$

1,080,394

 

 

$

264,206

 

 

$

1,344,600

 

 

 

$

64,678

 

 

 

 

$

983,435

 

 

$

234,900

 

 

$

1,218,335

 

 

 

$

73,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expense (A)

 

653,774

 

 

77,948

 

 

731,722

 

 

 

42,442

 

 

 

 

627,452

 

 

70,612

 

 

698,064

 

 

 

47,270

 

 

Acquisition costs and other underwriting expenses

 

173,166

 

 

79,278

 

 

252,444

 

 

 

16,201

 

 

 

 

146,307

 

 

47,214

 

 

193,521

 

 

 

15,569

 

 

General and administrative expenses (B)

 

184,776

 

 

58,892

 

 

243,668

 

 

 

12,382

 

 

 

 

190,286

 

 

68,297

 

 

258,583

 

 

 

24,533

 

 

Total underwriting expenses

 

$

1,011,716

 

 

$

216,118

 

 

$

1,227,834

 

 

 

$

71,025

 

 

 

 

$

964,045

 

 

$

186,123

 

 

$

1,150,168

 

 

 

$

87,372

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting income (loss)

 

68,678

 

 

48,088

 

 

116,766

 

 

 

(6,347

)

 

 

 

19,390

 

 

48,777

 

 

68,167

 

 

 

(13,604

)

 

Non-cash amortization of intangible assets

 

3,140

 

 

1,287

 

 

4,427

 

 

 

33

 

 

 

 

5,257

 

 

1,531

 

 

6,788

 

 

 

18

 

 

Underwriting income (loss) before amortization and impairment

 

$

71,818

 

 

$

49,375

 

 

$

121,193

 

 

 

$

(6,314

)

 

 

 

$

24,647

 

 

$

50,308

 

 

$

74,955

 

 

 

$

(13,586

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expense ratio (7)

 

68.9

%

 

44.4

%

 

65.1

%

 

 

78.5

 

%

 

 

75.8

%

 

41.8

%

 

70.1

%

 

 

82.8

 

%

Operating expense ratio (Non-GAAP) (8)

 

23.9

%

 

28.1

%

 

24.5

%

 

 

33.3

 

%

 

 

21.8

%

 

29.3

%

 

23.1

%

 

 

41.1

 

%

Combined ratio (Non-GAAP) (9)

 

92.8

%

 

72.5

%

 

89.6

%

 

 

111.8

 

%

 

 

97.6

%

 

71.1

%

 

93.2

%

 

 

123.9

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting ratios (before amortization and impairment)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expense ratio (7)

 

68.9

%

 

44.4

%

 

65.1

%

 

 

78.5

 

%

 

 

75.8

%

 

41.8

%

 

70.1

%

 

 

82.8

 

%

Operating expense ratio (Non-GAAP) (10)

 

23.5

%

 

27.4

%

 

24.1

%

 

 

33.2

 

%

 

 

21.2

%

 

28.4

%

 

22.4

%

 

 

41.0

 

%

Combined ratio before amortization and impairment (Non-GAAP) (11)

 

92.4

%

 

71.8

%

 

89.2

%

 

 

111.7

 

%

 

 

97.0

%

 

70.2

%

 

92.5

%

 

 

123.8

 

%

(A) Loss and loss adjustment expenses for the three months ended September 30, 2020, included $934 of unfavorable loss development on prior accident year loss and loss adjustment expense reserves in the P&C segment, and $5,827 of favorable loss development in the A&H segment, versus $14,909 of unfavorable loss development in the P&C segment, and $18,788 of favorable loss development in the A&H segment for the three months ended September 30, 2019.

(B) General and administrative expenses includes expenses allocated to segments only.

Segment Information - Year To Date
$ in thousands
(Unaudited)

 

 

Nine Months Ended September 30,

 

 

2020

 

 

2019

 

 

P&C

 

A&H

 

NGHC

 

 

Reciprocal
Exchanges

 

 

P&C

 

A&H

 

NGHC

 

 

Reciprocal
Exchanges

Gross written premium

 

$

3,429,987

 

 

$

572,619

 

 

$

4,002,606

 

 

 

$

288,676

 

 

 

$

3,321,090

 

 

$

592,771

 

 

$

3,913,861

 

 

 

$

344,982

 

 

Net written premium

 

2,836,955

 

 

510,758

 

 

3,347,713

 

 

 

142,054

 

 

 

2,521,969

 

 

500,237

 

 

 

3,022,206

 

 

 

172,460

 

 

Net earned premium

 

2,643,958

 

 

508,907

 

 

3,152,865

 

 

 

166,481

 

 

 

2,402,509

 

 

496,532

 

 

2,899,041

 

 

 

149,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ceding commission income

 

92,657

 

 

1,236

 

 

93,893

 

 

 

33,776

 

 

 

128,087

 

 

8,780

 

 

136,867

 

 

 

50,446

 

 

Service and fee income

 

332,344

 

 

249,189

 

 

581,533

 

 

 

5,121

 

 

 

348,045

 

 

177,685

 

 

525,730

 

 

 

4,471

 

 

Total underwriting revenues

 

$

3,068,959

 

 

$

759,332

 

 

$

3,828,291

 

 

 

$

205,378

 

 

 

$

2,878,641

 

 

$

682,997

 

 

$

3,561,638

 

 

 

$

204,322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expense (A) 1,725,588 226,204 1,951,792 114,816 1,746,409 241,685 1,988,094 124,584 Acquisition costs and other underwriting expenses 474,824 214,643 689,467 36,798 429,742 153,063 582,805 32,329 General and administrative expenses (B) 585,230 176,635 761,865 50,803 558,016 188,227 746,243 67,642 Total underwriting expenses $2,785,642 $617,482 $3,403,124 $202,417 $2,734,167 $582,975 $3,317,142 $224,555 Underwriting income (loss) 283,317 141,850 425,167 2,961 144,474 100,022 244,496 (20,233) Non-cash amortization of intangible assets 12,368 3,904 16,272 93 16,154 4,939 21,093 41 Underwriting income (loss) before amortization and impairment $295,685 $145,754 $441,439 $3,054 $160,628 $104,961 $265,589 $(20,192) Underwriting ratios Loss and loss adjustment expense ratio (7) 65.3% 44.4% 61.9% 69.0% 72.7% 48.7% 68.6% 83.4 %Operating expense ratio (Non-GAAP) (8) 24.0% 27.7% 24.6% 29.3% 21.3% 31.2% 23.0% 30.2 %Combined ratio (Non-GAAP) (9) 89.3% 72.1% 86.5% 98.3% 94.0% 79.9% 91.6% 113.6 % Underwriting ratios (before amortization and impairment) Loss and loss adjustment expense ratio (7) 65.3% 44.4% 61.9% 69.0% 72.7% 48.7% 68.6% 83.4 %Operating expense ratio (Non-GAAP) (10) 23.6% 26.9% 24.1% 29.2% 20.6% 30.2% 22.3% 30.1 %Combined ratio before amortization and impairment (Non-GAAP) (11) 88.9% 71.3% 86.0% 98.2% 93.3% 78.9% 90.9% 113.5 %

(A) Loss and loss adjustment expenses for the nine months ended September 30, 2020, included $13,989 of unfavorable loss development on prior accident year loss and loss adjustment expense reserves in the P&C segment, and $22,065 of favorable loss development in the A&H segment, versus $19,791 of unfavorable loss development in the P&C segment, and $37,775 of favorable loss development in the A&H segment for the nine months ended September 30, 2019.

(B) General and administrative expenses includes expenses allocated to segments only.

Reconciliation of Operating Expense Ratio (Non-GAAP)(8,10,12)
$ in thousands
(Unaudited)

Three Months Ended September 30,

2020

2019

P&C

A&H

NGHC

Reciprocal
Exchanges

P&C

A&H

NGHC

Reciprocal
Exchanges

Total underwriting expenses

$

1,011,716

$

216,118

$

1,227,834

$

71,025

$

964,045

$

186,123

$

1,150,168

$

87,372

Less: Loss and loss adjustment expense

653,774

77,948

731,722

42,442

627,452

70,612

698,064

47,270

Less: Ceding commission income

21,567

205

21,772

8,952

40,260

2,261

42,521

15,066

Less: Service and fee income

109,756

88,597

198,353

1,628

115,557

63,736

179,293

1,585

Operating expense (Non-GAAP) (8)

226,619

49,368

275,987

18,003

180,776

49,514

230,290

23,451

Net earned premium

$

949,071

$

175,404

$

1,124,475

$

54,098

$

827,618

$

168,903

$

996,521

$

57,117

Operating expense ratio (Non-GAAP) (8)

23.9

%

28.1

%

24.5

%

33.3

%

21.8

%

29.3

%

23.1

%

41.1

%

Total underwriting expenses

$

1,011,716

$

216,118

$

1,227,834

$

71,025

$

964,045

$

186,123

$

1,150,168

$

87,372

Less: Loss and loss adjustment expense

653,774

77,948

731,722

42,442

627,452

70,612

698,064

47,270

Less: Ceding commission income

21,567

205

21,772

8,952

40,260

2,261

42,521

15,066

Less: Service and fee income

109,756

88,597

198,353

1,628

115,557

63,736

179,293

1,585

Less: Non-cash amortization of intangible assets

3,140

1,287

4,427

33

5,257

1,531

6,788

18

Operating expense before amortization and impairment (Non-GAAP) (10)

223,479

48,081

271,560

17,970

175,519

47,983

223,502

23,433

Net earned premium

$

949,071

$

175,404

$

1,124,475

$

54,098

$

827,618

$

168,903

$

996,521

$

57,117

Operating expense ratio before amortization and impairment (Non-GAAP) (10)

23.5

%

27.4

%

24.1

%

33.2

%

21.2

%

28.4

%

22.4

%

41.0

%

Reconciliation of Operating Expense Ratio (Non-GAAP)(8,10,12)
$ in thousands
(Unaudited)

Nine Months Ended September 30,

2020

2019

P&C

A&H

NGHC

Reciprocal
Exchanges

P&C

A&H

NGHC

Reciprocal
Exchanges

Total underwriting expenses

$

2,785,642

$

617,482

$

3,403,124

$

202,417

$

2,734,167

$

582,975

$

3,317,142

$

224,555

Less: Loss and loss adjustment expense

1,725,588

226,204

1,951,792

114,816

1,746,409

241,685

1,988,094

124,584

Less: Ceding commission income

92,657

1,236

93,893

33,776

128,087

8,780

136,867

50,446

Less: Service and fee income

332,344

249,189

581,533

5,121

348,045

177,685

525,730

4,471

Operating expense (Non-GAAP) (8)

635,053

140,853

775,906

48,704

511,626

154,825

666,451

45,054

Net earned premium

$

2,643,958

$

508,907

$

3,152,865

$

166,481

$

2,402,509

$

496,532

$

2,899,041

$

149,405

Operating expense ratio (Non-GAAP) (8)

24.0

%

27.7

%

24.6

%

29.3

%

21.3

%

31.2

%

23.0

%

30.2

%

Total underwriting expenses

$

2,785,642

$

617,482

$

3,403,124

$

202,417

$

2,734,167

$

582,975

$

3,317,142

$

224,555

Less: Loss and loss adjustment expense

1,725,588

226,204

1,951,792

114,816

1,746,409

241,685

1,988,094

124,584

Less: Ceding commission income

92,657

1,236

93,893

33,776

128,087

8,780

136,867

50,446

Less: Service and fee income

332,344

249,189

581,533

5,121

348,045

177,685

525,730

4,471

Less: Non-cash amortization of intangible assets

12,368

3,904

16,272

93

16,154

4,939

21,093

41

Operating expense before amortization and impairment (Non-GAAP) (10)

622,685

136,949

759,634

48,611

495,472

149,886

645,358

45,013

Net earned premium

$

2,643,958

$

508,907

$

3,152,865

$

166,481

$

2,402,509

$

496,532

$

2,899,041

$

149,405

Operating expense ratio before amortization and impairment (Non-GAAP) (10)

23.6

%

26.9

%

24.1

%

29.2

%

20.6

%

30.2

%

22.3

%

30.1

%


Premiums by Product Line

$ in thousands
(Unaudited)

Three Months Ended September 30,

Gross Written Premium

Net Written Premium

Net Earned Premium

2020

2019

Change

2020

2019

Change

2020

2019

Change

Property & Casualty

Personal Auto

$

741,306

$

705,709

5.0

%

$

650,889

$

560,032

16.2

%

$

632,781

$

568,346

11.3

%

Homeowners

210,721

201,977

4.3

%

217,960

82,601

163.9

%

130,278

86,525

50.6

%

RV/Packaged

59,191

55,631

6.4

%

57,834

52,283

10.6

%

52,126

51,023

2.2

%

Small Business Auto

62,159

76,987

(19.3

)%

47,556

56,615

(16.0

)%

53,158

62,265

(14.6

)%

Lender-placed insurance

96,327

97,468

(1.2

)%

82,599

61,579

34.1

%

77,441

56,599

36.8

%

Other

9,099

16,563

(45.1

)%

4,597

6,860

(33.0

)%

3,287

2,860

14.9

%

Total Premium

$

1,178,803

$

1,154,335

2.1

%

$

1,061,435

$

819,970

29.4

%

$

949,071

$

827,618

14.7

%

Accident & Health

Group

89,852

73,223

22.7

%

70,672

59,001

19.8

%

70,670

59,009

19.8

%

Individual

106,085

85,728

23.7

%

103,658

85,541

21.2

%

104,734

85,971

21.8

%

Total Premium Domestic

$

195,937

$

158,951

23.3

%

$

174,330

$

144,542

20.6

%

$

175,404

$

144,980

21.0

%

International

3,604

(100.0

)%

2,807

(100.0

)%

23,923

(100.0

)%

Total National General

$

1,374,740

$

1,316,890

4.4

%

$

1,235,765

$

967,319

27.8

%

$

1,124,475

$

996,521

12.8

%

Total National General (A)

$

1,374,740

$

1,313,286

4.7

%

$

1,235,765

$

964,512

28.1

%

$

1,124,475

$

972,598

15.6

%

Reciprocal Exchanges

Personal Auto

$

33,561

$

39,166

(14.3

)%

$

10,323

$

67,154

(84.6

)%

$

24,654

$

33,953

(27.4

)%

Homeowners

63,935

78,079

(18.1

)%

18,166

(2,047

)

(987.4

)%

28,963

22,759

27.3

%

Other

891

1,022

(12.8

)%

1,002

2,178

(54.0

)%

481

405

18.8

%

Total Premium

$

98,387

$

118,267

(16.8

)%

$

29,491

$

67,285

(56.2

)%

$

54,098

$

57,117

(5.3

)%

Consolidated Total

$

1,473,127

$

1,435,157

2.6

%

$

1,265,256

$

1,034,604

22.3

%

$

1,178,573

$

1,053,638

11.9

%

(A) Excludes A&H international product line which was sold in the fourth quarter of 2019.

Premiums by Product Line
$ in thousands
(Unaudited)

Nine Months Ended September 30,

Gross Written Premium

Net Written Premium

Net Earned Premium

2020

2019

Change

2020

2019

Change

2020

2019

Change

Property & Casualty

Personal Auto

$

2,148,730

$

2,083,702

3.1

%

$

1,886,438

$

1,730,904

9.0

%

$

1,773,831

$

1,621,734

9.4

%

Homeowners

581,185

544,056

6.8

%

390,760

276,250

41.5

%

321,129

272,591

17.8

%

RV/Packaged

170,120

168,796

0.8

%

165,694

162,047

2.3

%

148,374

150,739

(1.6

)%

Small Business Auto

195,628

246,694

(20.7

)%

152,584

196,221

(22.2

)%

166,316

189,957

(12.4

)%

Lender-placed insurance

295,693

232,265

27.3

%

224,742

140,863

59.5

%

218,210

158,595

37.6

%

Other

38,631

45,577

(15.2

)%

16,737

15,684

6.7

%

16,098

8,893

81.0

%

Total Premium

$

3,429,987

$

3,321,090

3.3

%

$

2,836,955

$

2,521,969

12.5

%

$

2,643,958

$

2,402,509

10.0

%

Accident & Health

Group

266,857

213,197

25.2

%

209,360

170,911

22.5

%

209,372

170,921

22.5

%

Individual

305,762

252,719

21.0

%

301,398

252,316

19.5

%

299,535

252,122

18.8

%

Total Premium Domestic

$

572,619

$

465,916

22.9

%

$

510,758

$

423,227

20.7

%

$

508,907

$

423,043

20.3

%

International

126,855

(100.0

)%

77,010

(100.0

)%

73,489

(100.0

)%

Total National General

$

4,002,606

$

3,913,861

2.3

%

$

3,347,713

$

3,022,206

10.8

%

$

3,152,865

$

2,899,041

8.8

%

Total National General (A)

$

4,002,606

$

3,787,006

5.7

%

$

3,347,713

$

2,945,196

13.7

%

$

3,152,865

$

2,825,552

11.6

%

Reciprocal Exchanges

Personal Auto

$

102,752

$

120,012

(14.4

)%

$

73,678

$

101,460

(27.4

)%

$

89,291

$

65,907

35.5

%

Homeowners

183,331

222,019

(17.4

)%

66,758

68,180

(2.1

)%

76,037

82,475

(7.8

)%

Other

2,593

2,951

(12.1

)%

1,618

2,820

(42.6

)%

1,153

1,023

12.7

%

Total Premium

$

288,676

$

344,982

(16.3

)%

$

142,054

$

172,460

(17.6

)%

$

166,481

$

149,405

11.4

%

Consolidated Total

$

4,291,282

$

4,258,843

0.8

%

$

3,489,767

$

3,194,666

9.2

%

$

3,319,346

$

3,048,446

8.9

%

(A) Excludes A&H international product line which was sold in the fourth quarter of 2019.

Fee Income
$ in thousands
(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

Change

2020

2019

Change

Property & Casualty

Service and Fee Income

$

109,756

$

115,557

(5.0

)%

$

332,344

$

348,045

(4.5

)%

Ceding Commission Income

21,567

40,260

(46.4

)%

92,657

128,087

(27.7

)%

Property & Casualty

$

131,323

$

155,817

(15.7

)%

$

425,001

$

476,132

(10.7

)%

Accident & Health

Service and Fee Income

Group

$

44,306

$

34,848

27.1

%

$

128,029

$

98,084

30.5

%

Individual

2,379

2,128

11.8

%

6,861

5,506

24.6

%

Medicare Sales

10,032

5,610

78.8

%

32,822

17,870

83.7

%

Third Party Fee

31,881

21,150

50.7

%

81,478

56,225

44.9

%

Total Service and Fee Income

88,598

63,736

39.0

%

249,190

177,685

40.2

%

Ceding Commission Income

205

2,261

(90.9

)%

1,236

8,780

(85.9

)%

Accident and Health

$

88,803

$

65,997

34.6

%

$

250,426

$

186,465

34.3

%

Total National General

$

220,126

$

221,814

(0.8

)%

$

675,427

$

662,597

1.9

%

Reciprocal Exchanges

Service and Fee Income

$

1,628

$

1,585

2.7

%

$

5,121

$

4,471

14.5

%

Ceding Commission Income

8,952

15,066

(40.6

)%

33,776

50,446

(33.0

)%

Reciprocal Exchanges

$

10,580

$

16,651

(36.5

)%

$