Insurance management and reinsurance consulting company Trean Insurance Group, Inc. has posted a 41.8% decrease in net income over the second quarter of 2020.
After completing its initial public offering (IPO) in July 2020, Trean recorded a net income of $3.7 million for the Q2 period, down from $6.4 million for the period last year.
Underwriting income came to $0.9 million, resulting in a combined ratio of 95.9%, compared to underwriting income of $4.2 million and a combined ratio of 82.2% last year.
Losses and loss adjustment expenses for the second quarter of 2020 were $12.2 million, which resulted in a 57.0% loss ratio.
Trean attributed loss activity in the quarter to a decrease in net earned premiums, offset by a decrease in favorable loss reserve estimate true-ups.
Gross written premiums increased 5.0% to $109.6 million, compared to $104.4 million last year, due to the addition of new program partners brought on board in Q2.
Meanwhile, net earned premiums of $21.4 million declined 8.5% compared to the prior year’s second quarter, driven by the increase in gross unearned premiums.
Trean reported net investment income of $1.5 million in Q2, compared to $1.6 million for the prior-year period.
“Having recently completed a successful initial public offering in July, our focus remains on executing on our proven 24-year business model to drive future growth,” said Andrew M. O’Brien, President and Chief Executive Officer of Trean.
“The COVID-19 pandemic continues to provide significant uncertainty to many businesses throughout the country, including the insurance industry, but we believe Trean’s operating strategy will continue to demonstrate the stability and effectiveness of our approach,” he continued.
“We remain committed to supporting our program partners, responsibly accepting new opportunities, seeking proper rate levels and quickly and fairly resolving claims.”
O’Brien went on: “We are confident about the growth opportunities in our largest product line – workers compensation – and in deriving the benefits from our newly added program partners and acquisitions we completed earlier in 2020. We are excited by our performance thus far in 2020, and look forward to building additional value for shareholders in the coming years.”
