Avemco Corp., a Frederick-based aviation and marine insurance holding company, said yesterday that its third-quarter earnings plunged by 96.8 percent as the result of more claims in its growing aviation business, a few large claims and its reduced participation in short-term health programs.
The company's third-quarter net income dropped to $74,000, or a penny a share, compared with $2.3 million, or 26 cents a share, for the same period a year ago. Revenues for the quarter grew by 6.3 percent, to $29.1 million from $27.4 million.
While gross premiums during the quarter rose by 5.3 percent, to $24 million from $22.8 million, net incurred losses rose by 27.9 percent, to $17.9 million compared with $14 million for the period a year ago.
The company's stock reacted by dropping 75 cents a share, to close at $16.375.
"It is important to recognize that, historically, the third quarter has been our most volatile from a claims perspective," William P. Condon, Avemco's chairman and chief executive officer, said.