Enhance Financial Services Group late on Wednesday announced net income of $8 million, or 45 cents per share in the second quarter of 1994, up 116% from $3.7 million, or 20 cents per share, in the second quarter of 1993.
The company reported net income of $18.4 million, or $1.02 per share, in the first half of 1994, compared with $16.1 million, or 89 cents per share, in the first half of 1993.
Enhance Group is the holding company for Enhance Reinsurance Co., which provides reinsurance to financial guaranty insurers, and Asset Guaranty Insurance Co., which acts as both a primary insurer and reinsurer. Another subsidiary, Guaranty Risk Services Inc., acts as an adviser on credit-enhanced transactions.
Enhance Group had net premiums written of $45.5 million in the first six months of 1994, up slightly from $45 million in the same period in 1993. In the second quarter, the firm had net premiums written of $22.4 million, down 24.3% from $29.5 million in second quarter 1993.
"We are pleased to report that total net premiums written were up somewhat for the 1994 first half, year over year, even in this difficult period for municipal bond insurance and reinsurance," Wallace O. Sellers, Enhance Group's president and chief executive officer, said in a statement. "Our diversification strategy, in place since 1988, is especially helpful during such periods."
The activity of Enhance's self-proclaimed "specialty" lines -- mainly Asset Guaranty -- increased 28% in the first half of 1994 from the year before, Sellers said.
At June 30, Enhance Group's qualified statutory capital base stood at $389.4 million, up from $379.4 million at yearend 1993.
On the New York Stock Exchange yesterday, the first session of trading since the earnings were released, shares of Enhance Financial Services closed down 1/8 at 19 5/8.