Pac Rim Holding Corp., the Woodland Hills workers' compensation insurer, posted a fourth-quarter loss compared to a year earlier profit, and suffered a 50% drop in profit for all of 1995.
The company suffered a $237,000 loss in its fourth quarter that ended Dec. 31, compared to a $2-million profit in the same period a year earlier.
Pac Rim's gross premiums earned, the industry equivalent of sales, fell 18% to $19 million in the latest quarter, down from $23.1 million a year earlier.
For the full year, Pac Rim's profit fell by half to $575,000, compared to a $1.16-million profit in 1994.
Last year, the company's gross premiums earned fell 20% to $80.1 million, down from $100.1 million a year earlier.
The company attributed its poor results to intense price competition by competitors after California loosened restrictions on workers' compensation insurance rates Jan. 1, 1995.
Due in part to this intense competition, Pac Rim is expanding into new markets, and has been licensed to sell workers' compensation insurance in Texas and Arizona, with plans to expand into Florida and Georgia.