Amwest Insurance Profits Drop Sharply

Amwest Insurance Group Inc. reported a steep decline in its third-quarter profits, despite a 24% increase in premium writtens during the quarter.

Based in Woodland Hills, Amwest is an insurance holding company specializing in surety bonds that insure the performance of a contract.

Amwest earned $375,000 in the three months ended Sept. 30, down 71% from a $1.27-million profit a year earlier. Premiums written totaled $20.1 million, up from $16.1 million in premiums written in the 1993 third quarter.

In reporting the results, Amwest noted that its loss and loss-adjustment expenses increased 66% in the third quarter, to $4.39 million, while its loss ratio increased to 28% from 21% in the 1993 quarter.

In the first nine months of the year, Amwest’s net income fell 30% to $1.84 million, while the number of premiums written rose 25% to $53.7 million. A year before, it earned $2.61 million on $43 million in premiums. written.