Gainsco Reports Income Increase in Q2 2009 Results

Dallas-based Gainsco Inc. announced net income for the second quarter 2009 increased to $1.6 million, compared with a second quarter 2008 net income of $1 million.

Net income for the six months ended June 30, 2009 was $3.7 million. This compares to net income of $1.1 million for the six months ended June 30, 2008.

Gross premiums written increased approximately 13 percent and 7 percent during the second quarter and six months ended June 30, 2009, respectively, from gross premiums written in the comparable 2008 periods.

The company said it continues to adjust and settle claims associated with its runoff lines.

As regards the nonstandard personal auto business during the second quarter of 2009, the company recorded favorable development for claims occurring in prior accident years of $1.1 million. During the second quarter of 2008, the company recorded unfavorable development for claims occurring in prior accident years for nonstandard personal auto of $2.2 million.

For the first six months of 2009, the company recorded favorable development for claims occurring in prior accident years for nonstandard personal auto of $3.4 million. For the first six months of 2008, the company recorded unfavorable development for claims occurring in prior accident years for nonstandard personal auto of $3.9 million.

Gainsco’s nonstandard personal auto insurance products are distributed through independent retail agents in Florida, Georgia and South Carolina (Southeast Region), Texas (South Central Region) and Arizona, Nevada and New Mexico (Southwest Region), and through an independent managing general agency in California (West Region). Its insurance company subsidiary is MGA Insurance Company Inc.

Source: Gainsco Inc.