Allcity Insurance Announces Financial Results.NEW YORK--(BUSINESS WIRE)--Nov. 16, 1998--Allcity Insurance Company (ALCI-NASDAQ) announced its operating results for the nine month period ended Sept. 30, 1998. The net loss was $0.8 million or $0.11 per share for the nine month period ended Sept. 30, 1998 compared to a profit of $0.7 million or $0.10 per share for the nine month period ended Sept. 30, 1997. The net earned premiums Earned premium is the portion of an insurance written premium which is considered "earned" by the insurer, based on the part of the policy period that the insurance has been in effect, and during which the insurer has been exposed to loss. were $52.4 million and $63.4 million for the nine month periods ended Sept. 30, 1998 and 1997, respectively. The decrease principally relates to the Company's automobile lines which were adversely affected by competition in the assigned risk A danger or hazard of loss or injury that an insurer will not normally accept for coverage under a policy issued by the insurer, but that the insurance company is required by state law to offer protection against by participating in a pool of insurers who are also compelled to provide market resulting in a decline in the number of assigned risk contracts under which the Company acquires such assigned risk business from other insurance companies combined with a depopulation DEPOPULATION. In its most proper signification, is the destruction of the people of a country or place. This word is, however, taken rather in a passive than an active one; we say depopulation, to designate a diminution of inhabitants, arising either from violent causes, or the want of of the related assigned risk pools, and a reduction in voluntary automobile lines due to tighter 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. standards, re-underwriting and increased competition. Additionally, the Company's commercial lines, principally workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. and commercial package, were also affected by tighter underwriting standards, re-underwriting and increased competition. Net income decreased in 1998 principally due to the current period reflecting higher levels of reserve strengthening for prior accident years. Also affecting the current period net loss was lower service fee income due to a decrease in the number of assigned risk contracts under which the Company acquires such assigned risk business from other insurance companies, pool depopulation, and lower New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Public Automobile Pool ("NYPAP NYPAP New York Plein Air Painters ") net service fee income due to lower volume as a result of the Company's cessation as a servicing carrier for the NYPAP. These items were partially offset by lower underwriting expenses which were driven by lower premium volume and lower taxes due to the decline in taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. . Results of operations for the nine and three month periods ended on Sept. 30, 1998 and 1997 included net securities gains of $1.0 million and $0.6 million and losses of $0.3 million and $0.1 million, respectively. -0-
Nine Months Ended Sept. 30,
1998 1997
Total Revenues $68.2 million $80.5 million
Net Securities
Gains/(Losses) $ 1.0 million $(0.3) million
Net (Loss)/Income $(0.8) million $ 0.7 million
Per Share Data:
Basic(Loss)/Earnings $(0.11) $ 0.10
-0-
Three Months Ended Sept. 30,
1998 1997
Total Revenues $22.0 million $25.8 million
Net Securities
Gains/(Losses) $ 0.6 million $(0.1) million
Net (Loss)/Income $(0.0) million $ 0.0 million
Per Share Data:
Basic(Loss)/Earnings $(0.01) $ 0.01
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