ACCEL International Corporation Reports Results for the Third Quarter and for the Nine Months Ended Sept. 30, 1998.DUBLIN Dublin, city, Republic of Ireland Dublin, Irish Baile Átha Cliath, county borough (1991 pop. 915,516), Leinster, capital of the Republic of Ireland, on Dublin Bay at the mouth of the Liffey River. , Ohio--(BUSINESS WIRE)--Nov. 19, 1998--Third Quarter Results - ACCEL ACCEL Accelerate ACCEL Accelerometer ACCEL Accelerando (Music, Gradually Increasing in Speed) ACCEL American College of Cardiology Extended Learning International Corporation (Nasdaq/NMS:ACLE ACLE Alarm and Control Enhanced (NEC) ACLE Association for Continuing Legal Education ) today announced a net loss of ($647,000) or ($.08) per share, for the three months ended September September: see month. 30, 1998, compared with net income of $430,000 or $.05 per share for the same period in 1997. The consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial results for 1997 have been restated to reflect the separate presentation of discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Losses before Income Taxes and Discontinued Operations amounted to ($772,000) and ($339,000) for the third quarters of 1998 and 1997, respectively. For the third quarter of 1998, pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern gains of $10,000 were realized on the sale of investments, compared to a gain of $48,000 for the same period in 1997. Gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. totaled $8.8 million for the third quarter of 1998, compared with $9.4 million for the third quarter of 1997. Nine Month 1998 Results - For the nine month period ended September 30, 1998, the net loss was ($2.0 million), or ($.23) per share, compared with net income of $1.0 million, or $.12 per share for the same period in 1997. Losses before Income Taxes and Discontinued Operations amounted to ($2.1 million) and ($806,000) for the nine month periods ended September 30, 1998 and 1997 respectively. Gross premiums written for the nine months ended September 30, 1998 and 1997 were $33.7 million and $29.1 million, respectively. Realized pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta (losses) gains on the sale of investments were ($43,000) and $115,000 for the same nine month periods, respectively. Commentary - Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. J. Coats, President and Chief Executive Officer of ACCEL, reflecting on the results said, "While the Company's primary product line, commercial auto, produced positive underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. margins in the first nine months of 1998 of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $700,000 and our net investment income reached approximately $1.8 million, these positive amounts were offset primarily by general and administrative expenses of approximately $3.9 million and taxes, licenses and fees other than premium taxes of approximately $400,000. "Our net loss and loss adjustment expense ratio was 84.1% for the first nine months of 1998 compared to 74.3% for the same period in 1997. This increase is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a reserve strengthening of $750,000 made during the third quarter and higher than expected losses from the Company's large trucking fleets and paratransit Paratransit is an alternative mode of flexible passenger transportation that does not follow fixed routes or schedules. Typically vans or mini-buses are used to provide paratransit service, but also share taxis and jitneys are important providers. accounts. Many of these policies have been non-renewed or are earmarked for non-renewal at expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created . We continue to refine our book of business with an emphasis on retaining business which has demonstrated acceptable loss experience. "The current marketplace, however, remains extremely competitive, and with the aid of our agency force we are increasing pricing while being able to attract new business. As previously reported, we are continuing our efforts to seek a strategic partner to enhance overall shareholder value." ACCEL International Corporation is a Dublin, Ohio Dublin is a city in Delaware, Franklin, and Union counties in the U.S. state of Ohio. The population was 31,392 at the 2000 census. In 2006, the population was estimated to be 36,565[1], and Dublin continues to be one of the fastest-growing suburbs of Columbus. based holding company with executive offices in Stafford, Texas Stafford is a city in the U.S. state of Texas within the Houston–Sugar Land–Baytown Metropolitan Area. Stafford is mostly in Fort Bend County with a small portion in Harris County. As of the 2000 U.S. Census, the city population was 15,681. , providing specialty property and casualty products and services through its insurance subsidiary operating throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . -0-
ACCEL INTERNATIONAL CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Nine Months
Ended September 30, Ended September 30,
1998 1997 1998 1997
________ ________ ________ ________
(Thousands of dollars, except per share data)
REVENUE:
Gross premiums written $8,772 $9,402 $33,704 $29,125
Less reinsurance ceded 5,441 4,579 20,284 12,502
________ ________ ________ ________
Net premiums written 3,331 4,823 13,420 16,623
Decrease (increase) in
unearned premium reserves 415 (347) 622 (4,123)
________ ________ ________ ________
Premiums earned 3,746 4,476 14,042 12,500
Net investment income:
Interest and dividends 531 408 1,796 1,231
Realized gains (losses) 10 48 (43) 115
Equity in income of
affiliated company (86) - (86) -
Service fees on extended
service contracts - 823 - 2,340
Other income 56 (16) 268 120
________ ________ ________ ________
4,257 5,739 15,977 16,306
________ ________ ________ ________
BENEFITS AND EXPENSES:
Loss and loss adjustment
expenses 3,570 3,072 11,807 9,296
Commissions and selling
expenses 1,377 1,676 5,304 6,163
Reinsurance expense
recovery (1,663) (301) (4,416) (1,426)
General and administrative 1,302 1,045 3,896 2,496
Taxes, licenses and fees 311 273 1,285 1,009
Interest - 356 - 1,069
Decrease (increase) in
deferred policy
acquisition costs 132 (43) 232 (1,495)
________ ________ ________ ________
5,029 6,078 18,108 17,112
________ ________ ________ ________
INCOME (LOSS) BEFORE FEDERAL
INCOME TAXES AND DISCONTINUED
OPERATION (772) (339) (2,131) (806)
Federal income taxes:
Current expense (125) (19) (125) (19)
Deferred expense - (137) - 127
________ ________ ________ ________
(125) (156) (125) 108
________ ________ ________ ________
INCOME (LOSS) FROM
CONTINUING OPERATIONS (647) (183) (2,006) (914)
Discontinued operations:
Income from operations of
discontinued business
segment - 613 - 1,947
________ ________ ________ ________
NET INCOME (LOSS) $ (647) $ 430 $ (2,006) $ 1,033
________ ________ ________ ________
________ ________ ________ ________
Earnings per common
share -- basic/assuming
dilution:
Loss from continuing
operations $ (0.08) $ (0.02) $ (0.23) $ (0.11)
Income from discontinued
operations - .07 - .23
________ ________ ________ ________
Net income (loss) $ (0.08) $ 0.05 $ (0.23) $ 0.12
________ ________ ________ ________
________ ________ ________ ________
Weighted average number of
common shares outstanding 8,570,956 8,604,557 8,579,400 8,604,017
________ ________ ________ ________
________ ________ ________ ________
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