Meadowbrook Insurance Group reported third-quarter net income dropped 44 percent as a result of hurricane and investment losses.
The Southfield, Mich.-based specialty insurer and service provider reported third-quarter net income dropped $3.4 million to $4.2 million, or 9 cents a share.
Total revenues rose 37 percent, or $33 million, to $120 million in the quarter.
For the nine months, net income fell 5 percent, or $973,000, to $19.7 million, or 48 cents a share.
Revenues rose 17 percent, or $43.5 million to $298.5 million.
Meadowbrook reported its third-quarter combined ratio increased 2.9 points to 96.7. For the nine months, the combined ratio is down 1.7 points to 94.
"While our net income was adversely impacted by the unanticipated crisis in the financial markets and the two hurricanes, we are pleased with our core operating results," said Robert S. Cubbin, president and chief executive officer.
Affecting the results was the $5.4 million after-tax impact from Hurricanes Gustav and Ike. The results were also affected by $6.7 million of after-tax realized capital loss primarily due to losses in preferred stock holdings from Freddie Mac, Fannie Mae and Lehman Brothers.
The company issued revised earning guidance for this year to be between $37 million and $38 million, or 82 cents to 84 cents per share.
For 2009, net operating income is expected to be in the range of $46-to-$52 million, with a combined ratio between 95 and 97. Gross written premium is expected to be in the range of $725-to-$740 million.
The company declared a quarterly dividend of 2 cents a share payable on Dec. 1 to shareholders of record as of Nov. 14.
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