Acceptance Insurance Companies Inc. Announces First 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)--May 3, 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 March 31, 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 $1.9 million, or $0.13 per share. This compares with net after-tax income of $3.0 million or $0.21 per share for the three months ending March 31, 1999. The reported results include a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge of $4.0 million for the three months ended March 31, 2000 in conjunction with settlement of the rice producers' class action suit preliminarily approved May 1, 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, "In April we completed a definitive agreement with Clarendon CLARENDON. The constitutions of Clarendon were certain statutes made in the reign of Henry H., of England, in a parliament holden at Clarendon, by which the king checked the power of the pope and his clergy. 4 Bl. Com. 415. National Insurance Company to create a new partnership for the continued development of our specialty program business. The end of the first quarter also marked the end of our commitment to provide and renew coverages formerly originated as part of our Scottsdale Scottsdale, city (1990 pop. 130,069), Maricopa co., central Ariz.; settled in 1895 by Winfield Scott, inc. 1951. It is a resort and retirement center in the Phoenix metropolitan area. operation and we also sold the renewal rights for our `long-haul' trucking business. These actions conclude our previously announced plan to sell various books of unprofitable business." Martin added, "While we continue to address and bring closure to issues that contributed to our unacceptable 1999 results, we also are moving forward with new initiatives and have approved two new property and casualty programs that we expect to begin writing in the third quarter of this year. In addition, we are pleased with our Spring crop sales season, although we will not be able to quantify Quantify - A performance analysis tool from Pure Software. the sales volume until planting is complete and we receive actual acreage reports this Summer. Furthermore, we are continuing our commitment to innovation and new product development." The Company will hold a conference call for interested parties at 10:30 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT , Thursday Thursday: see week. , May 4, 2000. The Company's conference call may be accessed at 212 231 6024 five to 10 minutes before the call begins. The conference call also will be available on PostView from 12:30 p.m. EDT, May 4 to 5:00 p.m. EDT, May 5. 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. 15092982. 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. 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 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. intentions and crop insurance sales results. 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 ended March 31, 2000 and 1999
(in thousands, except per share data)
2000 1999
-------- --------
Gross premiums written $116,046 $126,114
Ceded premiums written (77,264) (75,062)
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Net premiums written $ 38,782 $ 51,052
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Revenues:
Insurance premiums earned 52,396 53,571
Net investment income 5,418 6,244
Net realized capital gains 1,565 2,480
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59,379 62,295
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Costs and expenses:
Costs of revenues:
Insurance losses and loss adjustment
expenses 39,713 36,876
Insurance underwriting expenses 20,299 18,168
General and administrative expenses 489 553
-------- --------
60,501 55,597
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Operating profit (loss) (1,122) 6,698
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Other income (expense):
Interest expense (2,168) (2,390)
Other, net - 14
-------- --------
(2,168) (2,376)
-------- --------
Income (loss) before income taxes and cumulative
effect of change in accounting principle (3,290) 4,322
Income tax expense (benefit) (1,400) 960
-------- --------
Income (loss) before cumulative effect of change
in accounting principle (1,890) 3,362
Cumulative effect of change in accounting
principle - (338)
-------- --------
Net income (loss) $ (1,890) $ 3,024
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Income (loss) per share before cumulative effect
of change in accounting principle:
Basic $ (.13) $ .24
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Diluted $ (.13) $ .23
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Net income (loss) per share:
Basic $ (.13) $ .21
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Diluted $ (.13) $ .21
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Shares:
Basic 14,285 14,241
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Diluted 14,285 14,342
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Ratios - GAAP:
Loss 75.8% 68.8%
Expense 38.7% 33.9%
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Combined 114.5% 102.7%
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March 31, March 31,
2000 1999
-------- --------
Total Investments $407,941 $502,518
Net Reserves for Losses and LAE 267,585 272,311
Total Equity 181,140 235,550
Book Value per Share $ 12.67 $ 16.54
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