N.C. Mutual Sees Improved First-Quarter Financial Results
|By Laura Oleniacz, The Herald-Sun, Durham, N.C.|
|McClatchy-Tribune Information Services|
That was an improvement over the same quarter last year, when the company reported a loss of
N.C. Mutual President and CEO
The company saw a 7 percent increase to bring revenues in the quarter from premium and annuity considerations from life, accident and health contracts to more than
The company also saw 75 percent growth in miscellaneous income to a total of
The company is also benefiting from cost reductions, Speed said. Last year, the company cut jobs, switched to a more efficient technology system and made changes to its pension plan.
"We're seeing more favorable results in our expenses, and (are more) efficient with our system," Speed said.
The company spun out its sales staff into an independent agency that can sell the company's own insurance products as well as the products of other companies, all while earning fees for those services. Speed said that starting
The company will adding some sales and marketing employees this year, he said. He expects the company to be profitable in 2014.
For 2013, the company posted a net loss of about
However, the rating agency also said those negative factors were partially offset by the company's continued focus on its new business model, including its fee-based initiatives and operating expenses reductions.
The agency said the company's overall premium is expected to increase this year due to the completion of payments related to an acquired business in 2008. Speed said in the interview Thursday that the company has completed paying for a block of business that the company acquired from
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