Republic American Earnings Down 34%

Republic American Corp. said its earnings in the third quarter that ended Sept. 30 fell 34% to $4.7 million, or 26 cents a share, from $7.1 million, or 36 cents a share a year earlier. Net premiums earned, which is similar to revenue, rose 5% to $64.1 million.

The Encino workers’ compensation insurance company blamed the drop on a $1.2-million underwriting loss in the quarter, compared to an underwriting profit of $2.1 million a year earlier. The firm said the loss was due to high overhead related to paying claims, lower rate increases than in past years and a slowdown in new business.

For the 9 months, the company’s earnings fell 21% to $16.9 million, or 91 cents a share, from $21.3 million, or $1.03 a share. Net premiums earned fell less than 1% to $175.2 million.

Republic American is controlled by Cincinnati financier Carl H. Lindner through his American Financial Corp. and Penn Central Corp. Lindner, through Penn Central, has agreed to pay $15.75 a share, or $153 million, for the 47% stake in Republic American that Lindner-controlled companies do not already own.