Amwest Insurance Profit Falls by 85%

Amwest Insurance Group in Woodland Hills said its profit in the third quarter that ended Sept. 30 tumbled 85% from a year earlier, to $258,000 from $1.76 million.

The underwriter of bail bonds and other surety bonds said the lower earnings came on a 2% increase in its net premiums earned--a gauge similar to operating revenue--to $12.3 million from $12.1 million.

Amwest said its latest results were hurt by its decision to discontinue or scale back certain surety lines. The company also noted that the profit a year earlier included a $797,000 net gain from Amwest’s termination of a $1.4-million reserve for potential customer rebates under Proposition 103, the California insurance-reform initiative. Amwest was able to cancel the reserve after surety providers were excluded from the measure.