February, 2008
ARI REPORTS 2007 YEAR END RESULTS
Lawrenceville, NJ - February 11, 2008 – ARI Insurance Companies today reported net income for the year of 2007 of $5,129,000 as compared to $5,489,000 in 2006. The net income for the fourth quarter of 2007 was $1,588,000 compared to $1,711,000 for the fourth quarter of 2006.
Direct written premiums decreased 3% year to year as a result of increased market competition. The 2007 loss ratio was 62% and 54% in 2006. The current year losses were impacted by increased severity for commercial automobile physical damage and a minor increase in the frequency of commercial automobile losses.
The 2007 results were favorably impacted by higher net investment income. Net investment income was $3,027,000 in 2007 compared with $2,370,000 in 2006. The increase in investment income is due to the increase in average invested assets and higher short term interest rates over the periods. Invested assets totaled $75,424,000 and total assets were $89,793,000 at year end 2007.
ARI President and Chief Executive Officer Karen S. Fulton said, "We continued our strong focus on underwriting and pricing integrity even as the market competition intensified. While this resulted in a slight decrease in our premium level it produced our sixth year with a combined ratio below 100%."
