AmCOMP Reports 2007 Third Quarter and Nine Months Financial Results.NORTH PALM BEACH, Fla. -- AmCOMP Incorporated (Nasdaq:AMCP AMCP Academy of Managed Care Pharmacy AMCP Aeronautical Mobile Communications Panel AMCP Association of Managed Care Providers (now Association of Managed Care Dentists) AMCP Army Materiel Command Pamphlet AMCP Army Married Couples Program ) today announced its financial results for the third quarter and nine months ended September September: see month. 30, 2007. Commenting on the results, Mr. Fred (Friendly Rollabout Engineered for Doctors) A mobile medical conferencing unit. See videoconferencing. 1. FRED - Robert Carr. Language used by Framework, Ashton-Tate. 2. R. Lowe, AmCOMP's Chief Executive Officer and President, said: "During the third quarter of 2007, we generated strong 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. results and produced solid returns in our investment portfolio, increasing net income 59.0% over the same period in 2006. In this challenging market, we continue to focus on our profitability by maintaining our underwriting discipline and pricing adequacy. Our business model may continue to affect our top-line growth in 2007, but we expect it will continue to help us produce outstanding combined ratios and lead to an attractive book value growth in the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. ." Financial Results for the Third Quarter of 2007 For the third quarter of 2007, net income increased $2.6 million, or 59.0%, to $6.9 million, or $0.44 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, compared to net income of $4.3 million, or $0.28 per diluted share, for the third quarter of 2006. Weighted average diluted shares outstanding were 15,719,000 compared to 15,579,000 as of September 30, 2006. Total revenue decreased 13.2% to $63.0 million in the third quarter of 2007 versus $72.6 million in the prior year's third quarter. Net premiums earned decreased $10.0 million, or 14.7%, in the third quarter of 2007 compared to the same quarter in 2006. Net investment income increased 13.1% for the same three month period in 2007 over the comparable quarter in 2006. The net combined ratio, including policyholder Policyholder An individual who owns an insurance policy. dividends for the quarter ended September 30, 2007, was 88.2% compared to 94.7% for the same period in 2006. Loss and loss adjustment expenses for the third quarter of 2007 were $31.8 million versus $41.2 million in the same period in 2006. The net loss ratio for the third quarter of 2007 was 54.8% compared to 60.5% in the same period in 2006. Policy acquisition expenses were $10.0 million in the third quarter of 2007 compared to $11.1 million in the third quarter of 2006. Underwriting and other expenses for the third quarter of 2007 were $9.3 million compared to $9.4 million in the prior year's same quarter. The annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on equity for the three months ended September 30, 2007, was 18.2%. Financial Results for the First Nine Months of 2007 Net income for the nine months ended September 30, 2007, was $16.4 million, or $1.04 per diluted share, a 7.3% increase over $15.3 million, or $1.04 per diluted share, in the first nine months of 2006. Weighted average diluted shares outstanding were 15,757,000 compared to 14,692,000 as of September 30, 2006. Nine month revenue in 2007 was $187.2 million, a 13.0% decrease compared to $215.2 million for the first nine months of 2006. Net premiums earned decreased $29.8 million, or 14.7%, for the nine months ended September 30, 2007, compared to the same period in 2006. Net investment income increased $2.1 million, or 16.6%, for the nine months ended September 30, 2007, compared to the same period in 2006. The net combined ratio, including policyholder dividends for the nine months ended September 30, 2007, was 92.0%, compared to 93.3% for the same period in 2006. Loss and loss adjustment expenses for the first nine months of 2007 were $92.9 million, versus $119.2 million in the same period in 2006. Total underwriting and other expenses for the first nine months of 2007 were $26.7 million, compared to $27.2 million in the prior year period. Policy acquisition expenses were $30.7 million for the nine months ended September 30, 2007, compared to $34.5 million in the first nine months of 2006. Our annualized return on equity for the nine months ended September 30, 2007, was 15.0%. AmCOMP's book value per diluted share at September 30, 2007, was $9.88. On August 28, 2007, the board of directors of AmCOMP Incorporated approved a share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program of up to a total of 1.5 million shares of the Company's common stock. As of September 30, 2007, the Company had repurchased 233,900 of its shares. Conference Call The Company will host a conference call on Thursday, November 8, 2007, at 8:00 AM ET, featuring remarks by Fred Lowe Fred Lowe was an Olympic weightlifter from the United States. Weightlifting achievements
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , and Kumar Gursahaney, Senior Vice President, Chief Financial Officer and Treasurer. The conference call is available via webcast on the Company's website and can be accessed by clicking on the following link: http://ir.amcomp.com/eventdetail.cfm?eventid=45754 . The dial-in number for the conference call is 719-325-4873. Please call at least five minutes before the scheduled start time. There will be an audio replay of the call, which will be available starting at 11:00 AM ET through 11:59 PM ET November 11, 2007, and can be accessed by calling 719-457-0820 or 888-203-1112 and using the pass code 8747213. The conference call webcast will be available on the Company's website for 60 days. About AmCOMP With roots dating back to 1982, AmCOMP Incorporated is an insurance holding company whose 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. , AmCOMP Preferred and AmCOMP Assurance, are mono-line 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. insurers with products that focus on value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. to policyholders. Currently marketing insurance policies in 16 core states and targeting small to mid-sized employers in a variety of industries, AmCOMP distributes its products through independent agencies. 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. Statements made in this press release, including those about the Company's financial condition and results of operations and about its future plans and objectives, which are not based on historical facts, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. Any such statements involve known and unknown risks, uncertainties and other factors, which are, from time to time, set forth in the Company's filings with the Securities and Exchange Commission. Such factors may cause AmCOMP's actual performance, condition and achievements to be materially different than any future performance, condition and achievement set forth in this press release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. [TABLE OMITTED] [TABLE OMITTED] |
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