Contens

For the third quarter, our net income increased 44.6% to $17.2 million, or $0.53 per share, compared with $11.9 million, or $0.38 per share, a year ago, excluding net non-recurring gains and losses and adjusting amortization to a pro forma basis in 2001 as if we had adopted the new accounting standard related to goodwill as of January 1, 2001. Our net income for the third quarter, including net non-recurring gains and losses, was $17.2 million, or $0.53 per share, compared with $9.7 million, or $0.31 per share for the third quarter of 2001, an increase of 78.2%.

Our total revenues for the third quarter of 2002 were $128.5 million, an increase of 46.7% over total revenues of $87.6 million for the third quarter of 2001. This increase was a result of our acquisition of Hobbs, new business and a continued strong rate environment. Commissions and fees for the quarter were $126.8 million, an increase of 46.9% over commissions and fees of $86.3 million for the third quarter of 2001. Excluding the effect of acquisitions and divestitures, commissions and fees rose 9.5%.

For the nine months ended September 30, 2002, our net income was $45.0 million, or $1.41 per share, excluding net non-recurring gains and losses and the 2002 cumulative effect of a revenue recognition accounting change. This amount reflects an increase of 50.0% over $30.0 million, or $1.00 per share, in net income for the first nine months of 2001, after adjusting 2001 amortization to a pro forma basis. Our net income, including net non-recurring gains and losses and the cumulative effect of the revenue recognition accounting change, for the first nine months of 2002 was $48.9 million, or $1.53 per share, compared with $25.2 million, or $0.84 per share, for the same period in 2001.

Our net income for the quarter and nine months ended September 30, 2001 would have increased by $0.07 and $0.21 per share, respectively, on a pro forma basis giving effect to the new accounting standard related to...