NEW YORK, May 4 /PRNewswire-FirstCall/ -- NYMAGIC, INC. (NYSE:NYM)
reported today the results of consolidated operations for the first
quarter ended March 31, 2009. The Company reported net income of
$3.5 million, or $.40 per diluted share for the three months ended
March 31, 2009, compared with net losses of $(29.7) million, or
$(3.42) per diluted share, for the first quarter of 2008. Book
value per share, calculated on a fully diluted basis, increased
from $19.11 at December 31, 2008 to $19.91 at March 31, 2009.
INVESTMENTS Net investment income amounted to $6.6 million for the
first quarter of 2009 compared with net investment loss of $(13.0)
million for the same period of 2008. Investment income in the first
quarter of 2009 includes $3.1 million from increases in the market
value of investments categorized as trading securities, which are
primarily tax-exempt securities. Investment income in the first
quarter of 2008 included investment losses of $(3.0) million from
limited partnerships and $(11.9) million due to a decline in the
market value of trading securities and commercial loans. During the
first quarter of 2008, these trading securities included municipal
bonds, preferred stocks, hedged positions and exchange-traded
funds. Net realized investment losses were $(417,000) for the first
quarter of 2009, as compared with net realized investment losses of
$(32.2) million for the same period of 2008. The net realized
investment losses in 2009 resulted primarily from the sale of
selected municipal securities undertaken to further reposition the
Company's holdings. These losses were partially offset by realized
investment gains arising from principal collections on the
Company's residential mortgage backed securities. Principal
collections on these residential mortgage backed securities totaled
$1.4 million during the first quarter of 2009, of which $545,000
was recorded as realized investment gains. Net realized investment
losses for the first quarter of 2008 were almost entirely
attributable to the decline in the market value of the Company's
investments in residential mortgage backed securities that was
recorded at that time. Accumulated other comprehensive income
(loss) included in shareholders' equity as of March 31, 2009
increased by $3.5 million to $0.6 million from $(2.9) million as of
December 31, 2008 as a result of unrealized investment gains in
corporate bonds and US Treasury securities held as available for
sale, which were partially offset by unrealized investment losses
in the municipal bond portfolio. At March 31, 2009 the Company's
total cash, investments and net receivable for securities sold
amounted to $593.2 million. The investment portfolio at March 31,
2009 consisted of cash, short-term investments and net receivable
for securities sold of $196.3 million, or 33.1%; fixed maturities
and other debt investments of $283.3 million, or 47.7%; and limited
partnership hedge funds of $113.6 million, or 19.2%. INSURANCE
OPERATIONS Gross premiums written of $67.7 million and net premiums
written of $53.0 million for the first quarter of 2009 decreased by
6% and 12%, respectively, from the same period of 2008. The
Company's decision to terminate a cargo program at the end of 2007
caused reductions in gross and net premiums totaling approximately
$3.0 million. Net premiums earned of $40.1 million for the first
quarter decreased by 11% from the same period of 2008. The
Company's combined ratio was 99.7% for the three months ended March
31, 2009 as compared with 99.4% for the same period of 2008.
Favorable loss reserve development amounted to $3.1 million and
$1.0 million during the first quarter of 2009 and 2008,
respectively. George Kallop, President and Chief Executive Officer,
in commenting on the quarter said, "The Company is very pleased
with the overall results in the first quarter. The adjustments made
to our investment strategy proved successful during the first
quarter, and we achieved substantial investment income in a
challenging environment. Operationally, we achieved an excellent
loss ratio that is a tribute to the prowess of our underwriting
staff. MMO Agencies has now opened relationships with over 50
agency offices and we expect that MMO Agencies will gain momentum
in the months ahead. We have achieved our goal of returning to
profitable operations, and we are optimistic as we progress into
the second quarter." NYMAGIC, INC. will hold a conference call on
its first quarter 2009 financial results live on Tuesday, May 5,
2009 at 9:00 A.M. ET. The call will last for up to one hour.
Investors and interested parties will have the opportunity to
listen to and join in the call by calling 800-374-0763 entering ID#
96495402 and registering with the operator. Please call no later
than 10 minutes prior to the start of the call to register. A
replay of the conference call will be available for 30 days by
dialing 800-642-1687 and entering ID 96495402. NYMAGIC, INC. is an
insurance holding company whose property and casualty insurance
subsidiaries specialize in writing ocean marine, inland marine and
non-marine liability insurance, and whose agency subsidiaries
specialize in establishing markets for such business. The Company
maintains offices in New York and Chicago. This report contains
certain forward-looking statements concerning the Company's
operations, economic performance and financial condition,
including, in particular, the likelihood of the Company's success
in developing and expanding its business. Any forward-looking
statements concerning the Company's operations, economic
performance and financial condition contained herein, including
statements related to the outlook for the Company's performance in
2009 and beyond, are made under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These statements
are based upon a number of assumptions and estimates which
inherently are subject to uncertainties and contingencies, many of
which are beyond the control of the Company. Some of these
assumptions may not materialize and unanticipated events may occur
which could cause actual results to differ materially from such
statements. These include, but are not limited to, the cyclical
nature of the insurance and reinsurance industry, premium rates,
investment results and risk assessments, the estimation of loss
reserves and loss reserve development, uncertainties associated
with asbestos and environmental claims, including difficulties with
assessing latent injuries and the impact of litigation settlements,
bankruptcies and potential legislation, the uncertainty surrounding
the loss amounts related to the attacks of September 11, 2001, and
hurricanes Katrina and Rita, the occurrence and effects of wars and
acts of terrorism, net loss retention, the effect of competition,
the ability to collect reinsurance receivables and the timing of
such collections, the availability and cost of reinsurance, the
possibility that the outcome of any litigation or arbitration
proceeding is unfavorable, the ability to pay dividends, regulatory
changes, changes in the ratings assigned to the Company by rating
agencies, failure to retain key personnel, the possibility that our
relationship with Mariner Partners, Inc. could terminate or change,
and the fact that ownership of our common stock is concentrated
among a few major stockholders and is subject to the voting
agreement, as well as assumptions underlying any of the foregoing
and are generally expressed with words such as "intends," "intend,"
"intended," "believes," "estimates," "expects," "anticipates,"
"plans," "projects," "forecasts," "goals," "could have," "may have"
and similar expressions. These and other risks could cause actual
results for the 2009 year and beyond to differ materially from
those expressed in any forward-looking statements made. Investors
are referred to the full discussion of risks and uncertainties
included in the Company's Annual Report on Form 10-K for the year
ended December 31, 2008, including those specified under the
caption "I. A. Risk Factors" and in other documents filed by the
Company with the U.S. Securities and Exchange Commission. The
Company undertakes no obligation to update publicly or revise any
forward-looking statements made. (Comparative Table Attached)
NYMAGIC, INC. TABLE OF RESULTS (Unaudited) (In thousands, except
per share data) Three Months Ended March 31, 2009 2008 ---- ----
Revenues: Net premiums earned $40,130 $44,905 Net investment income
(loss) 6,552 (13,017) Realized investment (losses) (417) (32,248)
Commission and other income 5 59 ----- ----- Total revenues 46,270
(301) Expenses: Net losses & loss adjustment exp. 20,682 26,021
Policy acquisition expenses 9,297 9,835 General &
administrative expenses 10,044 8,766 Interest expense 1,680 1,677
----- ----- Total expenses 41,703 46,299 Income (loss) before
income taxes 4,567 (46,600) Total income tax expense (benefit)
1,089 (16,852) ----- -------- Net income (loss) $3,478 $(29,748)
Earnings per share: Basic $ .41 ($ 3.42) ----- ------- Diluted $
.40 ($ 3.42) ----- ------- Weighted average shares outstanding:
Basic 8,411 8,707 Diluted 8,590 8,707 Balance sheet data: March 31,
December 31, ------------------- 2009 2008 ---- ---- Shareholders'
equity $171,154 $164,073 Book value per share (1) $19.91 $19.11 (1)
Calculated on a fully diluted basis. Supplementary information:
NYMAGIC Gross Premiums Written By Segment Three months ended March
31, 2009 2008 Change (Dollars in thousands) Ocean marine $20,084
$22,241 (10%) Inland marine/fire 6,196 3,568 74% Other liability
41,300 45,774 (10%) ------ ------ ----- Subtotal 67,580 71,583 (6%)
Runoff lines (Aircraft) 84 45 NM Total $67,664 $71,628 (6%) NYMAGIC
Net Premiums Written By Segment Three months ended March 31, 2009
2008 Change (Dollars in thousands) Ocean marine $14,218 $17,554
(19%) Inland marine/fire 1,907 1,241 54% Other liability 36,916
41,044 (10%) ------ ------ ----- Subtotal 53,041 59,839 (11%)
Runoff lines (Aircraft) (26) 78 NM Total $53,015 $59,917 (12%)
NYMAGIC Net Premiums Earned By Segment Three months ended March 31,
2009 2008 Change (Dollars in thousands) Ocean marine $13,289
$17,823 (25%) Inland marine/fire 1,182 1,645 (28%) Other liability
25,686 25,359 1% ------ ------ -- Subtotal 40,157 44,827 (10%)
Runoff lines (Aircraft) (27) 78 NM Total $40,130 $44,905 (11%)
Investment income results: Three months ended March 31, 2009 2008
(in millions) Fixed maturities, held to maturity $0.6 $ - Fixed
maturities, available for sale 2.0 2.0 Fixed maturities, trading
securities 3.1 (10.8) Short-term investments 0.2 1.0 Equity in
earnings of limited partnerships 1.2 (3.0) Commercial loans 0.1
(1.1) --- ----- Total investment (loss) income 7.2 (11.9)
Investment expenses (0.6) (1.1) Net investment (loss) income $6.6
$(13.0) === ===== CONTACT: NYMAGIC, INC. A. George Kallop,
212-551-0744 or Richard Lewis Communications, Inc. Cecelia Heer or
Gregory Tiberend, 212-827-0020 DATASOURCE: NYMAGIC, INC. CONTACT:
A. George Kallop, NYMAGIC, INC., +1-212-551-0744; or Cecelia Heer
or Gregory Tiberend, +1-212-827-0020, of Richard Lewis
Communications, Inc.
Copyright
Nymagic (NYSE:NYM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Nymagic (NYSE:NYM)
Historical Stock Chart
From Jul 2023 to Jul 2024