Fairmont Financial, a Burbank workers' compensation insurance holding company that has agreed to be acquired in a stock swap by Transamerica, said it earned $2.8 million, or 51 cents a share, in the first quarter ended March 31. The profit is double the $1.4 million, or 26 cents a share, Fairmont earned a year earlier.
On an operating basis, earnings increased 198% to $2.8 million from $954,000 a year earlier. Revenue rose 76% in the quarter to $49.5 million from $28.1 million a year earlier.
The company attributed the rise in earnings to increases in premiums written, higher investment income and profits from its financing operations.