This week Southern Guaranty Insurance Companies, based in Montgomery, Ala., reported its year-end 2003 financial results, showing a significant improvement over the previous year and better than the 2003 insurance industry projections.
Southern Guaranty’s net income improved to $17.2 million in 2003, compared to a loss of $3.6 million in 2002. In addition, the company reported a profitable statutory combined ratio of 96.7, which is better than its 105.2 in 2002 and the 2003 industry average of 103.1, as projected by Conning Research and Consulting, Inc.
“Despite a relatively active storm year in our territory, which included Hurricane Isabel, we were able to exceed our challenging business plan,” said Roger Droste, executive vice president of Southern Guaranty. “Our small business policy performed extremely well and new commercial business growth exceeded our expectations. We are pleased with our 2003 results and have several initiatives in place to continue our strong financial performance in 2004.”
In 2003, Southern Guaranty reported $196.9 million in direct written premiums. Policyholders’ surplus also significantly increased by $14.5 million, or 17.2 percent.
In November, Southern Guaranty merged operations with its sister company General Casualty Insurance Companies, based in Sun Prairie, Wis. While Southern Guaranty operates as part of General Casualty’s organizational structure, it retains the Southern Guaranty brand and product offerings. Together the companies market personal and commercial insurance in 26 states and wrote $1.2 billion in direct premiums in 2003.
“Our closer affiliation with General Casualty will help us offer our agents and policyholders additional services and capabilities, which we’re looking forward to,” Droste said.
“The partnership between Southern Guaranty and General Casualty provides a great opportunity for each organization to benefit from the other,” said Pete McPartland, president and CEO of General Casualty. “General Casualty will lend its expertise in areas where Southern Guaranty lacked resources, and Southern Guaranty gives General Casualty a number of favorable markets with a successful and respected brand.”
For more information please contact Anne M. Smith.