Western Financial Group reports Q1 results
Western Financial Group announced today its operating and financial results for the three months ended March 31, 2010. The company more than doubled its first-quarter earnings compared with a year earlier as revenue rose 60 per cent.
"We are pleased to report early success in achieving our goal for a strong 2010 financial result," said Scott Tannas, President and CEO. "Our net income is ahead of budget for the quarter with a number of bright spots, including our first ever $1 million + quarter of operating income at Bank West. Our Network indicators are in line with expectations, and we noticed an acceleration in same store growth as the quarter progressed. The Network margin is lower than this time last year, as a result of the addition of Group Insurance Solutions (formerly HED), which has magnified the Network’s seasonal revenue characteristics. Both Western Life and SecuriCan are ahead of budget after the quarter. As a result, we remain confident that we are on track to achieve our 2010 financial goals."
The Network
The Network combined margin for the quarter was 18%, with Group Insurance Solutions margin at 8% and the retail division at 20%. Retail same store sales are at 4.7%, and same store customer count growth grew by 2.0% on a YTD, annualized basis.
Bank West
The Bank’s loan book increased slightly over the quarter, to $360.7 million. Specific and general loan loss reserves were significantly lower compared to the prior quarter, the result of an improved credit environment. Net interest margin stands at a record high of 4%.
Western Life
Western Life’s industry leading growth continued with premium sales up by 10% year over year, the result of expanding distribution of creditor life products, and growing cross sales within the Western Financial Group family, including a substantial increase in Term Life sales by the Network.
SecuriCan
SecuriCan’s premium revenue is up 15% and we saw improved loss ratios year over year at 44% compared to 50%.
Strategic Partnership Portfolio
The Company’s partnerships in investment banking, insurance distribution and manufacturing provided positive income for the quarter, with all units delivering combined results in line with our budget expectations.
