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ACCEPTANCE INSURANCE REPORTS INCREASED NET INCOME OF $2,167,000

 OMAHA, Neb., Nov. 11 /PRNewswire/ -- Acceptance Insurance Companies Inc. (NYSE: AIF) announced its fifth consecutive quarter of increased earnings for the period ended Sept. 30, 1993. Revenue increased 52 percent and net income almost tripled to $2,167,000 for the three month period as compared to the like period in the prior year. For the nine month period, the company reported a revenue increase of 44 percent and net income of $5,434,000 as compared to a loss for the nine month period in the prior year. On a per share basis, the company reported income of 22 cents per share and 66 cents per share for the three and nine month periods in 1993 as compared to income of 22 cents per share and a loss of (50 cents) per share for the like period in 1992.
 The company's three month results, excluding the results of The Redland Group, were primarily impacted by a 1.7 percent decrease in the combined ratio to 102.4 percent versus 104.1 percent for the like period in the prior year and an approximate $375,000 reduction in interest expense. For the nine month periods, excluding the results of The Redland Group, 1993 results versus 1992 results are primarily impacted by a $2.7 million increase in net investment income principally due to the increased size of the company's portfolio; a $1.7 million decrease in interest expense as a result of eliminating in excess of $30 million of debt principally through an asset sale in 1992 and an equity offering in 1993; a $1.0 million decrease in general and administrative expenses principally as a result of consolidating the home office functions in Omaha in 1992; and a $2.1 million reserve strengthening which occurred in 1992 which did not recur in 1993. Excluding the reserve strengthening in 1992, the company's combined ratio for the nine month period is virtually unchanged.
 The company's results for the three month period include the operations of The Redland Group since July 1, 1993. Redland reported $852,000 of profits consisting principally of ceding commissions received under the federal multi-peril crop insurance program (MPCI) which were offset by approximately $3.1 million of losses, principally from the perils of wind and hail, under other crop and farm programs. Redland's results exclude any underwriting profit or loss from the MPCI program as the currently available data is inconclusive due to the very unusual growing season in the Midwest this summer. Further effects of the MPCI program will be recognized, once known, in subsequent quarters.
 Acceptance Insurance is an A- rated specialty property and casualty insurance company concentrating its efforts in the excess and surplus lines business. The company's insurance operations are conducted through its five insurance subsidiaries and two insurance agencies. The company seeks specialty books of insurance business throughout the United States in which the application of its skilled underwriting and claims techniques can provide the company with an advantage over the insurance industry.
 ACCEPTANCE INSURANCE COMPANIES INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS


For the three months and nine months ended Sept. 30, 1993 and 1992
 (in thousands, except per share data)
 (unaudited)
 Three Months Nine Months
 1993 1992 1993 1992
 Revenues:
 Insurance premiums earned $34,438 $20,851 $88,948 $58,230
 Insurance agency commissions 952 854 2,998 2,938
 Real estate revenues --- 615 --- 2,610
 Net investment income 3,070 2,960 9,528 6,820
 38,460 25,280 101,474 70,598
 Costs and expenses:
 Cost of revenues:
 Insurance losses and loss
 adjustment expenses 28,202 15,372 67,821 44,354
 Insurance agency costs 988 824 2,908 2,825
 Insurance underwriting
 expenses 5,282 6,174 20,669 16,525
 Real estate costs --- 504 --- 818
 General and administrative
 expenses 1,066 676 2,150 3,192
 35,538 23,550 93,548 67,714
 Operating profit 2,922 1,730 7,926 2,884
 Other income (expense):
 Interest expense (627) (1,001) (1,865) (3,608)
 Share of net loss of investee (40) (64) (263) (978)
 Other, net 50 154 (41) 208
 (617) (911) (2,169) (4,378)
 Income (loss) from continuing
 operations before income taxes
 and minority interests 2,305 819 5,757 (1,494)
 Provision for income taxes 85 --- 175 ---
 Minority interests in net income
 of consolidated subsidiaries 53 63 148 146
 Income (loss) from continuing
 operations 2,167 756 5,434 (1,640)
 Loss on disposal of
 discontinued operations --- --- --- (83)
 Net income (loss) $2,167 $756 $5,434 $(1,723)
 Earnings per share:
 Primary:
 Continuing operations $.22 $.22 $.66 $(.48)
 Discontinued operations --- --- --- (.02)
 Net income (loss) $.22 $.22 $.66 $(.50)
 Fully diluted:
 Continuing operations $.22 $.22 $.64 $(.48)
 Discontinued operations --- --- --- (.02)
 Net income (loss) $.22 $.22 $.64 $(.50)
 -0- 11/11/93
 /CONTACT: William J. Gerber of Acceptance Insurance, 402-344-8800/
 (AIF)


CO: Acceptance Insurance Companies Inc. ST: Nebraska IN: INS SU: ERN

MC -- DV001 -- 3158 11/11/93 10:45 EST
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Publication:PR Newswire
Date:Nov 11, 1993
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