21st Century Holdings Announces 2nd Quarter Results

21st Century Holding Co. of Lauderdale Lakes today reported mixed results for the quarter ended June 30, with a decrease in total revenues but an increase in gross, net earned, and unearned premiums.

Its subsidiary, Federated National Insurance Co., is authorized to underwrite homeowners’ coverage, flood, personal and commercial automobile, and commercial general liability insurance in Florida as an admitted carrier. Federated also is authorized to underwrite commercial general liability insurance in Arkansas, California, Georgia, Kentucky, Maryland, Missouri, Nevada, South Carolina, and Virginia as a surplus lines carrier, and in Texas, Louisiana and Alabama as an admitted carrier.

For the three months ended June 30, the parent company reported a net loss of $0.8 million, or $0.10 per share on 7.95 million average undiluted and diluted shares outstanding, compared with a net loss of $2.3 million, or $0.30 per share on 7.95 million average undiluted and diluted shares outstanding in the same three-month period last year.

For the six months ended June 30, the company reported a net loss of $2.8 million, or $0.35 per share on 7.95 million average undiluted and diluted shares outstanding, compared with a net loss of $3.3 million, or $0.42 per share on 7.95 million average undiluted and diluted shares in the same six-month period last year.

Gross premiums written increased $0.4 million, or 1.5 percent, to $28.0 million for the three months ended June 30, compared with $27.6 million for the same three-month period last year. Homeowners’ gross written premium increased $0.4 million, or 1.6 percent, to $22.6 million for the three months ended June 30, compared with $22.2 million for the same three-month period last year.

Gross premiums written increased $0.5 million, or 1.0 percent, to $55.1 million for the six months ended June 30, compared with $54.6 million for the same six-month period last year. Homeowners’ gross written premium increased $1.7 million, or 3.7 percent, to $45.0 million for the six months ended June 30, compared with $43.3 million for the same six-month period last year.

Unearned premiums increased $6.7 million, or 14.2 percent, to $53.8 million as of June 30, compared with $47.1 million as of Dec. 31, 2010.

Net premiums earned increased $0.8 million, or 7.1 percent, to $11.7 million for the three months ended June 30, compared with $10.9 million for the same three-month period last year. Net premiums earned increased $0.9 million, or 4.1 percent, to $22.8 million for the six months ended June 30, compared with $21.9 million for the same six-month period last year.

Total revenues decreased $0.8 million, or 5.7 percent, to $14.2 million for the three months ended June 30, compared with $15.0 million for the same three-month period last year. Total revenues decreased $3.5 million, or 11.4 percent, to $27.3 million for the six months ended June 30, as compared with $30.8 million for the same six-month period last year.

The company was recently granted a 13.9 percent rate increase on the homeowners’ policies it assumed from Citizens Property Insurance Corp. in 2009. The increase is effective August. 21.

CEO & President Michael J. Braun also reports that the company has put in place a new reinsurance program at a significantly lower estimated cost, and experienced a 14 percent reduction in operating expenses from a merger of insurance subsidiaries. He further notes the company achieved improved underwriting results, with a loss ratio of 67.0 percent in the second quarter compared to 93.6 percent in the same period in 2010.

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