American Safety Insurance Group, LTD. Reports Fourth Quarter and Year-End Results Net Premiums Earned Up 49% for the Year.Business Editors HAMILTON Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. , Bermuda--(BUSINESS WIRE)--March 21, 2000 American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Safety Insurance Group, Ltd. (NYSE NYSE See: New York Stock Exchange : ASI ASI, n See Anxiety Sensitivity Index. ) today announced results for the fourth quarter and the fiscal year ended December 31, 1999. Net premiums earned for the fourth quarter of 1999 increased 15% to $3,576,702 over the same quarter of 1998. Total revenues for the fourth quarter of 1999 increased 8% to $5,658,275 over the same quarter of 1998. Net operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the fourth quarter of 1999 decreased 1% to $1,444,889, or $.25 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 on 5.9 million average shares outstanding, compared with $1,462,884, or $.24 per diluted share on 6.1 million average shares outstanding for the fourth quarter of 1998. Net earnings for the fourth quarter of 1999 decreased 20% to $1,400,430, or $.24 per diluted share on 5.9 million average shares outstanding, compared with $1,750,506, or $0.29 per diluted share on 6.1 million average shares outstanding for the fourth quarter of 1998 due to lower realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. on sales of investments in the fourth quarter of 1999 compared to the 1998 period. Net premiums earned for 1999 increased 49% to $13,672,851 from $9,188,614 in 1998. Total revenues for 1999 increased 32% to $22,089,067 from $16,739,849 in 1998. Net operating earnings for the year ended December 31, 1999, increased 4% to $5,746,663, or $.95 per diluted share on 6.0 million average shares outstanding, compared with $5,511, 019, or $.96 per diluted share on 5.7 million average shares outstanding for 1998. Net earnings for the year ended December 31, 1999 decreased 1% to $5,920,268, or $0.98 per diluted share on 6.0 million average shares outstanding, compared with $5,954,249, or $1.04 per diluted share on 5.7 million average shares outstanding for 1998. Both net operating earnings and net earnings for the fourth quarter of 1999 and for the year ended December 31, 1999 were affected by increased operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. attributable to the addition of personnel in connection with the Company's new insurance business units and the loss of interest on notes receivable as a result of the previously announced foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. on property located in Ponce Inlet, Florida Ponce Inlet is a town in Volusia County, Florida, United States. The population was 2,513 at the 2000 census. As of 2004, the population recorded by the U.S. Census Bureau is 3,178 [1]. . The book value of the Company increased 8% to $10.56 per share at December 31, 1999 as compared to $9.76 for 1998. The Company's 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 bought 156,450 shares of common stock during the fourth quarter of 1999 and bought a total of 300,000 shares of common stock during 1999. Commenting on the results, Lloyd A. Fox, President and Chief Executive Officer, said, "We are pleased with the growth of our premiums and revenues both in the fourth quarter and for the 1999 year and with the diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of the products and services that we offer. Net premiums earned for the year were up 49% over 1998 and total revenues increased 32% over 1998. While expenses were up during this past year due to the addition of our financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. capability as well as insurance 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. units, these groups have all begun producing premium and revenue for our company and have enabled our company to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. its products and services. Although we have experienced a loss of interest income on the Florida property loan, we believe that significant value can be generated through our own development of Harbour Village over the next three to five years." American Safety Insurance Group, Ltd. is a specialty insurance and financial services company which, through its subsidiaries, develops, underwrites, manages and markets primary casualty insurance and 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. programs in the alternative insurance market for environmental risks, employee leasing and staffing industry risks, and other specialty risks, and provides a broad range of financial services and products to middle market businesses. Additional information about American Safety can be found at "http://www.americansafetygroup.com". This press 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. . These forward-looking statements reflect the Company's current views with respect to future events and financial performance. Forward-looking statements involve risks and uncertainties which may cause actual results to differ, and are subject to change based on various factors, including competitive conditions in the insurance industry, unpredictable developments in loss trends, changes in loss reserves, market acceptance of new coverages and enhancements, changes in levels of general business activity and economic conditions. With respect to the development of the Harbour Village property, such forward looking statements involve risks and uncertainties which may cause actual results to differ, and are subject to change based on various factors, including competitive housing conditions housing conditions npl → condiciones fpl de habitabilidad housing conditions npl → conditions fpl de logement in the local market area, risks inherent in new construction, changes in interest rates and the availability of mortgage financing for prospective purchasers of condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. units and boat slips, and changes in local and national levels of general business activity and economic conditions. For additional factors which could influence the results of the Company's operating and financial performance, see the Company's filings with the Securities and Exchange Commission.
AMERICAN SAFETY INSURANCE GROUP, LTD.
Financial and Operating Highlights
Three Months Ended Twelve Months Ended
December 31 December 31.
1999 1998 1999 1998
INCOME STATEMENT DATA:
Revenues:
Direct and
assumed
premiums
earned $ 5,397,131 $ 3,729,498 $ 19,687,753 $ 13,182,705
Ceded
premiums
earned (1,820,429) (618,307) (6,014,902) (3,994,091)
Net
Premiums
earned 3,576,702 3,111,191 13,672,851 9,188,614
Net
Investment
income 717,812 540,310 2,877,771 2,847,359
Interest on
notes
receivable 594,721 922,230 2,614,572 2,408,908
Brokerage
commission
income 336,463 223,501 1,107,497 1,113,843
Management
fees from
related
party 159,041 163,806 721,845 713,528
Net realized
gains (44,459) 287,622 173,605 443,230
Other income 317,995 8,884 920,926 24,367
Total
revenues 5,658,275 5,257,544 22,089,067 16,739,849
Expenses:
Losses and
Loss
adjustment
expenses 1,329,229 1,555,270 6,896,423 5,177,033
Acquisition
expenses 542,344 675,322 1,819,041 1,009,906
Payroll and
related
expenses 1,536,355 1,002,005 5,032,382 3,500,676
Other
Expenses 800,977 443,823 2,338,231 1,297,229
Total
expenses 4,208,905 3,676,420 16,086,077 10,984,844
Earnings
before
income
taxes 1,449,370 1,581,124 6,002,990 5,755,005
Income taxes 48,940 (169,382) 82,722 (199,244)
Net
earnings $ 1,400,430 $ 1,750,506 $ 5,920,268 $ 5,954,249
Net earnings
per share
Basic $ 0.24 $ 0.29 $ 0.99 $ 1.05
Diluted $ 0.24 $ 0.29 $ 0.98 $ 1.04
Average
number of
shares
outstanding:
Basic 5,877,661 6,064,770 6,006,605 5,661,700
Diluted 5,884,061 6,106,378 6,032,364 5,738,039
GAAP combined
ratio 59.4% 81.9% 69.7% 73.3%
BALANCE SHEET DATA: December 31 December 31
1999 1998
Total investments $ 59,648,157 $ 51,047,769
Total assets 104,353,534 86,147,470
Unpaid losses and loss
adjustment expenses 20,413,236 14,700,473
Total liabilities 43,314,774 26,878,177
Total shareholders'
equity 61,038,760 59,269,293
Book value per share $ 10.56 $ 9.76
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