Allcity Insurance Company announces its results for the year.NEW YORK--(BUSINESS WIRE)--March 31, 1998--Allcity Insurance Co. (the "Company") today announced its operating results for the year ended Dec. 31, 1997. Net loss was $(0.1) million or $(0.01) per share for the year ended Dec. 31, 1997 compared to $2.6 million or $0.37 per share for 1996. 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 declined by $15.2 million or 15.8% primarily due to the 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 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 automobile pools and reduced volume in certain commercial lines, principally voluntary commercial automobile and 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. due to competition, reunderwriting and repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing . Net earned premium revenues were negatively affected by $1.7 million in 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 for retrospectively ret·ro·spec·tive adj. 1. Looking back on, contemplating, or directed to the past. 2. Looking or directed backward. 3. Applying to or influencing the past; retroactive. 4. rated reinsurance contracts written for 1995 and prior accident years. The net loss reflects an increase in the 1997 accident year loss ratios, principally for the private passenger automobile and commercial assigned risk lines of business, based upon increased claim frequency and continued unfavorable development of prior accident year losses. Included in the company's results for 1997 were approximately $8.3 million in reserve strengthening related to losses from prior accident years. Investment income decreased by $0.6 million primarily as a result of negative cashflow and lower yields. Service fee income declined by $0.9 million due to the continued depopulation of assigned risk pools. Included in total revenues and net income for the years ended Dec. 31, 1997 and 1996 are net securities losses of $(0.2) million and gains of $1.1 million, respectively, which decreased and increased per share earnings by $(0.02) and $0.10, respectively (net of tax). -0-
Three Months Twelve Months
Ended Dec. 31, Ended Dec. 31,
1997 1996 1997 1996
Total Revenues $22.1 mill. $28.6 mill. $102.6 mill. $120.8 mill.
Net Securities $(0.1)mill. $(0.2)mill. $(0.2) mill. $ 1.1 mill.
(Losses) gains
Net (Loss) Income $(0.8)mill. $ 0.8 mill. $(0.1) mill. $ 2.6 mill.
Basic (Loss)
Earnings per
share:
Basic (Loss)
Earnings $(0.12) $(0.11) $(0.01) $0.37
CONTACT: Allcity Insurance Company 212/387-3000 |
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