Acceptance Insurance Companies Inc. Announces Year-End 2001 Results.Business Editors COUNCIL BLUFFS Council Bluffs, city (1990 pop. 54,315), seat of Pottawattamie co., SW Iowa, on and below bluffs overlooking the Missouri River, opposite Omaha, Nebr.; inc. 1853. , Iowa--(BUSINESS WIRE)--Jan. 31, 2002 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 ) today reported net income of $5.1 million, or $0.34 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the fourth quarter of 2001. The Company's continuing crop insurance operations generated an 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. net operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $6.0 million, or $0.39 per diluted share, for the quarter. Property and casualty operations resulted in an after-tax net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $2.6 million, or $0.17 per diluted share, during this period. For the fourth quarter of 2000, the Company reported a net loss of $24.1 million or $1.69 per share. The Company's net loss for the year ended December 31, 2001 was $9.1 million, or $0.63 per share, compared to a net loss of $28.8 million, or $2.02 per share, for the year ended December 31, 2000. The crop insurance operations conducted primarily by the Company's American Agrisurance, Inc. and American Growers Insurance Company subsidiaries generated an after-tax net operating profit of $6.6 million, or $0.46 per share, for the year ended December 31, 2001. For the year ended December 31, 2000, Company crop insurance operations had an after-tax net operating loss of $14.7 million, or $1.03 per share. Acceptance property and casualty operations had an after-tax net operating loss of $22.1 million, or $1.54 per share, for the year ended December 31, 2001 compared to an after-tax net operating loss of $13.8 million, or $0.97 per share, during the comparable period of 2000. The fourth quarter financial information released today includes the Company's estimated results of its 2001 multiple peril The designated contingency, risk, or hazard against which an insured seeks to protect himself or herself when purchasing a policy of insurance. Among the various types of perils for which insurance coverage is available are fire, theft, illness, and death. PERIL. crop insurance operations, which produced an after-tax 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. gain of $7.0 million. The results compare favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to an after-tax underwriting loss of $10.5 million recorded in the fourth quarter of 2000. More favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. weather conditions in several of the Company's primary marketing regions and operating cost efficiencies generated from reorganization and acquisition activities contributed to the positive results. The Company's crop hail and other crop operations produced an after-tax underwriting loss of $1.0 million and $1.4 million for the fourth quarter ended December 31, 2001 and 2000, respectively. For the year ended December 31, 2001 the Company's primary crop insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. , American Growers Insurance Company, had statutory net income of approximately $14.3 million compared to a statutory net loss of $21.0 million for the year ended December 31, 2000. As of December 31, 2001 American Growers Insurance Company had statutory surplus of approximately $75.4 million compared to $56.8 million as of December 31, 2000. Company Chief Executive Officer John E. Martin noted, "I am pleased with the profitability of our crop operations. We have made significant progress in creating a focused and energized agricultural risk management company. Our new operating structure was intended to generate operating efficiencies and increase profitability, and these initial results are encouraging. At the same time we have been making investments in our operations to provide additional tools to our Associates and agents to further improve our service to customers. In addition, during a year of rapid transition we have continued to lead the industry in product development, earning FCIC FCIC Federal Citizen Information Center (formerly Federal Consumer Information Center; Pueblo, CO, USA) FCIC Federal Crop Insurance Corporation FCIC Federal Consumer Information Center approval for the first livestock livestock Farm animals, with the exception of poultry. In Western countries the category encompasses primarily cattle, sheep, pigs, goats, horses, donkeys, and mules; other animals (e.g., buffalo, oxen, or camels) may predominate in other areas. insurance program authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: under federal legislation. We expect the positive momentum evident in our fourth quarter crop operating results to continue." The property and casualty results for the year ended December 31, 2001 reflect the net of tax increase in loss reserves of $9.1 million recorded in the third quarter of 2001. The reserve increase was concentrated primarily in the general liability lines of business for accident years 1999 and prior. The after-tax net operating loss for the fourth quarter of 2001 reflects the results of the run-off business and related expenses. The Company will hold a conference call for interested parties to discuss its fourth quarter results at 9:30 a.m. (Central) Friday, February 1, 2002. Interested parties may access the Company's conference call at 212.346.6455 five minutes before the call to insure Insure can mean:
Acceptance Insurance Companies Inc. is an insurance holding company providing agricultural risk management products and services 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 Agrisurance, Inc. and American Growers Insurance Company are wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of the Company. 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 expected future financial results of the Company's property and casualty and crop insurance operations. 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 Acceptance's Form 10K for the year ended December 31, 2000 and Form 10Q for the quarter ended September 30, 2001, which are incorporated herein by this reference. The Company will not update or revise the forward-looking statements in this release even though the conditions or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or currently underlying those statements may materially change.
ACCEPTANCE INSURANCE COMPANIES INC.
Three Months and Twelve Months Ended December 31, 2001
and 2000 (in thousands except per share data)
Three Months Twelve Months
2001 2000 2001 2000
Net premiums written $ 93,316 $ 52,434 $ 102,647 $ 137,081
========= ========= ========= =========
Revenues:
Insurance premiums
earned $ 94,217 $ 57,571 $ 124,843 $ 186,673
Net investment income 3,130 6,960 16,685 24,679
Net realized capital
gains 2,238 296 3,394 2,120
--------- --------- --------- ---------
99,585 64,827 144,922 213,472
--------- --------- --------- ---------
Costs and expenses:
Insurance losses and loss
adjustment expenses 7,287 25,117 65,739 131,604
Insurance underwriting
expenses 81,739 56,427 83,010 98,876
Write-off of excess of
cost over acquired net
assets -- 9,910 -- 9,910
General and
administrative expenses 339 384 1,061 1,919
--------- --------- --------- ---------
89,365 91,838 149,810 242,309
--------- --------- --------- ---------
Operating profit
(loss) 10,220 (27,011) (4,888) (28,837)
--------- --------- --------- ---------
Interest expense (2,173) (2,174) (8,682) (8,677)
--------- --------- --------- ---------
Income (loss) before
income taxes 8,047 (29,185) (13,570) (37,514)
Income tax expense
(benefit) 2,905 (5,037) (4,501) (8,665)
--------- --------- --------- ---------
Net income (loss) $ 5,142 $ (24,148) $ (9,069) $ (28,849)
========= ========= ========= =========
Income (loss) per share:
Basic $ 0.36 $ (1.69) $ (0.63) $ (2.02)
========= ========= ========= =========
Diluted $ 0.34 $ (1.69) $ (0.63) $ (2.02)
========= ========= ========= =========
Shares:
Basic 14,428 14,311 14,381 14,301
========= ========= ========= =========
Diluted 15,132 14,311 14,381 14,301
========= ========= ========= =========
December 31, December 31,
2001 2000
Total investments $212,365 $344,283
Net reserves for losses and
loss adjustment expenses 168,544 233,912
Total equity 155,275 160,481
Book value per share $ 10.76 $ 11.21
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