Allcity Insurance Company Announces Second Quarter 2003 Results.Business Editors BROOKLYN, N.Y.--(BUSINESS WIRE)--Aug. 18, 2003 Allcity Insurance Company (ALCI-OTCBB) announced its operating results for the six month period ended June 30, 2003 and reported a net loss of $1,620,000 or $0.23 per share for the six months ended June 30, 2003 compared to a net loss of $1,979,000 or $0.28 per share for the comparable 2002 period. Net earned premium 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. revenues of the Company were $335,000 and $3,054,000 for the six month periods ended June 30, 2003 and 2002, respectively. The Company's premium revenues reflect the various previously announced actions taken by the Empire Group (which includes the Company and Empire Insurance Company, the Company's parent) since 2000 to exit the insurance business, and a reduction to premium revenues to recognize retrospective LAW, RETROSPECTIVE. A retrospective law is one that is to take effect, in point of time, before it was passed. 2. Whenever a law of this kind impairs the obligation of contracts, it is void. 3 Dall. 391. reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. premiums of $415,000 and $228,000 for the six month periods ended June 30, 2003 and 2002, respectively. Included in the Company's pre-tax losses were net increases for loss and loss adjustment expenses for prior accident years of $616,000 and $700,000 for the six month periods ended June 30, 2003 and 2002, respectively. This news release contains 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. such as predictions or forecasts. The Company assumes no obligation to update those statements to reflect actual results, changes in assumptions and other factors. The forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those that are projected. Those factors include the taking of adverse regulatory action against the Company and Empire Insurance Company, developments in claims handling, including adverse litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. developments, that could adversely affect the voluntary liquidation Voluntary liquidation Liquidation proceedings that are supported by a company's shareholders. plan of the Group, the Group's ability to manage the claims runoff Runoff The procedure of printing the end-of-day prices for every stock on an exchange onto ticker tape. Notes: If the "tape is late" then it can take a long time to print off all the closing prices. , increased loss adjustment expenses resulting from an extended claims run-off and the other risks detailed in the Company's SEC reports, including the Form 10-Q Form 10-Q See 10-Q. for the quarter ended June 30, 2003. Results of operations for the six and three month periods ended June 30, 2003 and 2002 are as follows (in thousands, except per share amounts):
(Unaudited) (Unaudited)
Six Months Ended June 30, Three Months Ended June 30,
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2003 2002 2003 2002
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Total Revenues $ 1,534 $ 4,861 $ 721 $ 1,986
Net Securities Gains $ 200 $ 47 $ 4 $ -
Net Loss $(1,620) $(1,979) $ (742) $ (708)
Per Share Data:
Basic and Diluted Loss $ (0.23) $ (0.28) $(0.11) $ (0.10)
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