ULLICO Inc. Starts the Year Strong, Reporting Operating Income for the First Quarter of $3.7 Million and Net Income of $2.4 Million. Revenue Increased 12% from the First Quarter 2009.
WASHINGTON, DC (May 13, 2010) — ULLICO Inc. (“the Company”), the Labor owned multi-line holding company offering insurance and financial products and services, today reported pre-tax operating income of $3.7 million for the quarter ended March 31, 2010, compared to a pre-tax operating loss of $2.5 million in the same quarter of the prior year. The current quarter generated net income of $2.4 million, compared to a net loss of $1.7 million in the prior year’s quarter.
Highlights for the quarter:
- The Life and Health Business Unit contributed pre-tax earnings of $3.3 million, compared to $2.5 million for the same period last year. Earnings in the quarter were driven by favorable underwriting results for the Medical Stop Loss line of business. Revenue was $36.9 million in the current quarter compared to $36.7 million in the same quarter in 2009.
- The Property and Casualty Business Unit contributed pre-tax earnings of $3.6 million, compared to $1.7 million for the same period last year. Revenue was $29.8 million, an increase of 45% over the same quarter in 2009. The significant earnings and revenue growth continue to be driven primarily from the successful expansion of the Workers’ Compensation, Commercial and Surety lines of business. The core Fiduciary and Union Liability product lines also showed revenue and earnings growth.
- The Investment Services Business Unit, which includes our Real Estate Investment Group, contributed pre-tax earnings of $3.4 million, compared to $0.6 million for the same period last year. In the current quarter, limited partnership investments generated a gain of $0.1 million, compared to a loss of $1.8 million for the same period last year. In addition, the results were impacted by a decrease in operating expenses. Assets under management within the Company’s flagship Separate Account J decreased from $3.5 billion at March 31, 2009 to $3.3 billion at March 31, 2010. However, total third party assets under management increased from $4.5 billion at March 31, 2009 to $4.9 billion at March 31, 2010 as our other managed funds increased due to additional deposits and improvement in the equity markets.
Total premium and fee revenue for the quarter was $77.3 million compared to $69.0 million in the prior year’s quarter, an increase of 12%. The increase was driven primarily by our Property and Casualty Business Unit as discussed above.
Edward McElroy, ULLICO CEO stated, “From both a revenue and earnings perspective, ULLICO once again had an outstanding quarter. Our existing portfolio of products is forming a solid base as we continue to invest in developing new products. Our focus on building a diversified portfolio of financial solutions for Labor and the employers of union members is proving to be a successful formula.”
Commenting on the results, Chairman Joseph Hunt said, “I am very pleased with ULLICO’s results for the first quarter and we are off to an excellent start for the year. By maintaining our dedication and focus on our core Labor markets, we have continued to grow and succeed in the most difficult of economic climates. These results and our continued momentum demonstrate Labor’s commitment to building ULLICO in the best way to serve the union workplace, and the working men and women of North America.”
Quarterly Financial Results at a Glance
| (In Millions) | 1st Quarter 2010 | 1st Quarter 2009 | Variance |
| Total Income | $84.3 | $72.8 | $11.5 |
| Total Benefits & Expenses | 80.6 | 75.3 | (5.3) |
| Pre-Tax Operating Income/(Loss) before Non-Recurring Transactions | $3.7 | ($2.5) | $6.2 |
| Non-Recurring Transactions | - | - | - |
| Pre-Tax Operating Income/(Loss) after Non-Recurring Transactions | $3.7 | ($2.5) | $6.2 |
| Tax Expense/(Benefit) | 1.3 | (0.8) | (2.1) |
| Net Income/(Loss) | $2.4 | ($1.7) | $4.1 |
About ULLICO
ULLICO Inc. is a $5.5 billion holding company whose subsidiary companies include The Union Labor Life Insurance Company; ULLICO Investment Advisors, Inc.; ULLICO Investment Company; ULLICO Casualty Company; and ULLICO Casualty Group, Inc.
ULLICO has proudly served the union workplace for more than eighty years; through its family of companies, it offers specialty insurance and investment products to its single most important client, the American Labor movement. For additional information, visit www.ullico.com [1].
Forward-Looking Statements
This press release may contain certain “forward-looking statements.” In particular, statements regarding growth in our business are forward-looking statements as are discussions of our product pipeline and expected performance. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of ULLICO Inc. or its subsidiary companies, or the industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.
ULLICO’s forward-looking statements speak only as of the date of this press release or as of the date they are made, and ULLICO undertakes no obligation to update its forward-looking statements.
CONTACT:
Bina Handa
Manager
Communications & PR
202.682.6611
bhanda@ullico.com [2]
