Vesta Reports Profitable Third Quarter

NU Online News Service, Nov. 14, 12 :01 p.m. EST?Vesta Insurance Group Inc., a Birmingham, Ala.-based personal-lines insurer, posted $4.3 million in net income for its third quarter, improving from a net loss of $11.6 million reported one year ago.

"We are pleased with our third-quarter results as all three business segments produced profits," said Norman Gayle, chief executive officer for Vesta. "Our quarterly results demonstrate the earnings power and strength of our underlying operations," he said.

The insurer's standard property-casualty segment--which includes the residential property and standard auto businesses--posted net income from continuing operations of $3.9 million. But its net written premiums declined, to $35.8 million from $95.7 million reported during the period one year ago.

Mr. Gayle acknowledged that the states his company is exiting continue to negatively pressure the overall standard property-casualty results. But, he added, "Our targeted states are performing exceptionally well as reflected by the 92.9 percent combined ratio for the segment in the quarter."

Vesta Insurance sells preferred, standard, and nonstandard auto and homeowners coverage. The company also offers life insurance through American Founders Financial. Last year, the insurer incurred net loss of $32.2 million on sales of $634.1 million.