Net income rise for Famguard in 3Q
Third quarter results for Famguard Corporation revealed a 67 percent rise in net income compared to the same period last year.
The company’s net income grew to$1.7 million during the third quarter, a figure that stood at$990,439 at the corresponding period in 2009. The increase represents a second consecutive quarter where profits grew for Famguard.
A statement in the financial report said:”Continued growth in our ordinary life and group life&health premiums as well as annuity deposits has positively impacted these results; net premium income and annuity deposits increased by$4.3 million or 6.5%over prior year-to-date.”
Although net income saw a hike in the third quarter, bad debt expenses also rose by 80 percent to$165,759 from $91,596 at the same point last year. Operating expenses increased 4.4 percent to$10.6 million from$10.1 million a year ago. Commissions dropped 1.6 percent to$8.9 million from$9.1 million and premium taxes rose 5.7 percent to$2 million from$1.9 million.
The company also launched FG Insurance Agents and Brokers Limited during the third quarter, the latest subsidiary that will facilitate property transactions and casualty insurance by Famguard agents.
First half results for Famguard revealed a$3.6 million rise in premium income and a 39 percent boost in net income compared to the same period in 2009. Its net income grew from$629,733 in the six months ended June 30, 2009 to$876,567 in the corresponding period this year.
The performance during the first three months of 2010 was a large contributor to the first half results, with 65 percent of the firm’s net income generated in the first half occurring in the second quarter.