Republic American Corp. said it earned $2 million in the fourth quarter that ended Dec. 31, down 65% from a year earlier.
The Encino workers compensation insurance company posted a $5.3-million underwriting loss on a 17% decline to $51.1 million in net premiums earned, an insurance industry figure similar to revenue. That loss was offset by $6.6 million in net investment income in the quarter.
For all of 1988, Republic American earned $19 million, down 30% from 1987. Net premiums earned fell 5% to $226.3 million.
Slightly more than half of Republic American’s shares are owned by two companies, Penn Central Corp. of Greenwich, Conn., and American Financial Corp. of Cincinnati, which are controlled by Cincinnati financier Carl H. Lindner.
Republic American shareholders are scheduled to vote next month on the company’s acquisition by Penn Central. Penn Central is offering $15.75 a share, or nearly $140 million, for the shares not already owned by Lindner-controlled companies.