WASHINGTON -- College Construction Loan Insurance Association, the holding company for Connie Lee Insurance Co., reported consolidated net income of $2.3 million for the third quarter, up 18% from the comparable quarter last year. For the nine months ended Sept. 30, net income totaled $5.9 million compared with $5.4 million in the same period last year.
Connie Lee, which provides credit enhancement for higher education and education-related health care bonds, said it insured $469.4 million par value of new-issue municipal bonds through Sept. 30, down 15% from the total for the first nine months of 1993.
"Despite substantially reduced volume in the municipal bond market, Connie Lee has experienced relatively strong demand for its guarantees," Oliver R. Sockwell, president and chief executive officer, said in a press release. In the nine months ended Sept. 30, overall municipal volume has declined by 44%.
For the third quarter, Connie Lee's net premiums written totaled $1.4 million, down from $2.5 million in the same quarter of 1993. For the first three quarters of 1994, net premiums written were $10.2 million, slightly below the $10.4 million written through Sept. 30, 1993.
Third-quarter consolidated revenues slipped to $4.7 million from $5.1 million a year ago, but the nine-month total rose 8%, to $15 million from $13.9 million a year earlier. Consolidated revenues include earned premiums, investment income, and realized gains.
Net premiums earned in the third quarter totaled $2 million, down from $2.7 million a year ago. For the nine months, net premiums earned rose 17% to $6.4 million from $5.5 million a year earlier.
Connie Lee said investment income rose 14% in the third quarter, to $2.7 million from $2.4 million. The nine-month total of $8.6 million was up slightly from $8.4 million in the comparable period a year ago.
Connie Lee said that on a statutory basis, reserves available for policyholders totaled $188.4 million, consisting of $71.7 million of deferred premium revenue, $115.2 million of qualified statutory capital (policyholders' surplus plus contingency reserve), and $1.5 million in case basis loss reserves.