Acceptance Insurance Companies Inc. Announce Second Quarter Results.Business Editors OMAHA Omaha, city, United States Omaha (ō`məhä, –hô), city (1990 pop. 335,795), seat of Douglas co., E Nebr., on the west bank of the Missouri River; inc. 1857. , Neb.--(BUSINESS WIRE)--August 8, 2000 Acceptance Insurance Companies Inc. (NYSE NYSE See: New York Stock Exchange : AIF AIF Annual Information Form AIF Apoptosis-Inducing Factor AIF Agence Intergouvernementale de la Francophonie (French: Intergovernmental Agency for Francophony) AIF Australian Imperial Force ) announced today that for the three months ended June June: see month. 30, 2000 the Company had a net after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. loss of $520,000, or $0.04 per share. For the six months ended June 30, the net after-tax loss was $2.4 million, or $0.17 per share. This compares with net after-tax income of $3.9 million, or $0.27 per share for the three months ended June 30, 1999, and $6.9 million, or $0.48 per share for the six months ended June 30, 1999. The Company also announced that it had received the results of an independent actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin study completed as of June 30, 2000, and that the study confirmed the Company's recorded reserves for reported and unreported claims remained above the consulting actuary's point estimate and within their recommended range. In addition, the Company said 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. results for its continuing property and casualty business improved during the three months ended June 30, 2000 in comparison with the three months ended March 31, 2000. Acceptance CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. John Martin said, "Overall our continuing property and casualty business improved in the second quarter, and we also are pleased by the independent actuarial study reaffirming that our reserves remain above the actuary's point estimate. We expect the costs being incurred on the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: property and casualty business to diminish as a result of last December's strategic decisions." Martin added, "During the second quarter, the Agricultural Risk Protection Act of 2000 became law. This far-reaching far-reach·ing adj. Having a wide range, influence, or effect: the far-reaching implications of a major new epidemic. legislation strengthens the crop insurance safety net for farmers and encourages creation of new risk management alternatives for all agricultural producers. We are working hard to apply the new directions Congress provided, and to remain the most innovative Company in our industry." Acceptance Insurance Companies Inc. is an insurance holding Company providing specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. crop, property and casualty insurance products 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. . American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Agrisurance, the Company's wholly owned crop insurance marketing subsidiary, is a widely recognized leader in the crop insurance industry. The Company will hold a conference call for interested parties at 9:30 a.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT , Tuesday Tuesday: see week. , August 8, 2000. The Company's conference call may be accessed at 212 231 6019 five to ten minutes before the call begins. The conference call also will be available on PostView from 11:30 a.m. CDT, August 8 to 11:30 a.m. CDT, August 9. To access PostView, dial 800 633 8284 and enter reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. 15889510. This release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. with respect to the Company's underwriting intentions and operating results of the Company's discontinued property and casualty business. Such forward-looking statements are subject to inherent risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements, including factors noted in the Company's Form 10K for the year ended December December: see month. 31, 1999, which are incorporated herein by reference.
ACCEPTANCE INSURANCE COMPANIES INC.
for the three months and six months ended June 30, 2000 and 1999
(in thousands, except per share data)
Three Months Six Months
-------------------- ------------------
2000 1999 2000 1999
------ ------ ------ ------
Gross premiums
written $ 146,340 $ 166,867 $262,386 $ 292,981
Ceded premiums
written (121,215) (109,886) (198,479) (184,948)
---------- ---------- --------- ----------
Net premiums
written $ 25,125 $ 56,981 $ 63,907 $ 108,033
========== ========== ========= ==========
Revenues:
Insurance
premiums earned 41,912 58,001 94,308 111,572
Net investment
income 6,056 6,394 11,474 12,638
Net realized
capital gains 101 2,862 1,666 5,342
---------- ---------- --------- ----------
48,069 67,257 107,448 129,552
---------- ---------- --------- ----------
Costs and expenses:
Cost of revenues:
Insurance losses
and loss
adjustment
expenses 34,943 41,955 74,656 78,831
Insurance
underwriting
expenses 11,529 17,089 31,828 35,257
General and
administrative
expenses 671 637 1,160 1,190
---------- ---------- --------- ----------
47,143 59,681 107,644 115,278
---------- ---------- --------- ----------
Operating profit
(loss) 926 7,576 (196) 14,274
---------- ---------- --------- ----------
Other income
(expense):
Interest expense (2,168) (2,270) (4,336) (4,660)
Other, net -- 7 -- 21
---------- ---------- --------- ----------
(2,168) (2,263) (4,336) (4,639)
---------- ---------- --------- ----------
Income (loss) before
income taxes and
cumulative effect of
change in accounting
principle (1,242) 5,313 (4,532) 9,635
Income tax expense
(benefit) (722) 1,412 (2,122) 2,372
---------- ---------- --------- ----------
Income (loss) before
cumulative effect of
change in accounting
principle (520) 3,901 (2,410) 7,263
Cumulative effect of
change in accounting
principle -- -- -- 338
---------- ---------- --------- ----------
Net income (loss) $ (520) $ 3,901 $ (2,410) $ 6,925
========== ========== ========= ==========
Income (loss) per
share before
cumulative effect
of change in
accounting principle:
Basic $ (.04) $ .27 $ (.17) $ .51
Diluted $ (.04) $ .27 $ (.17) $ .51
========== ========== ========= ==========
Net income (loss)
per share:
Basic $ (.04) $ .27 $ (.17) $ .49
========== ========== ========= ==========
Diluted $ (.04) $ .27 $ (.17) $ .48
========== ========== ========= ==========
Shares:
Basic 14,300 14,245 14,292 14,243
========== ========== ========= ==========
Diluted 14,300 14,295 14,292 14,318
========== ========== ========= ==========
Ratios - GAAP
Loss & LAE 83.4% 72.3% 79.2% 70.7%
Underwriting 27.5% 29.5% 33.7% 31.6%
---------- ---------- --------- ----------
Combined 110.9% 101.8% 112.9% 102.3%
========== ========== ========= ==========
June 30, June 30,
2000 1999
-------------- --------------
Total Investments $386,352 $469,496
Net Reserves for Losses and LAE 260,038 260,836
Total Equity 180,427 237,140
Book Value per Share $ 12.61 $ 16.64
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