American Safety Insurance Group, Ltd. Reports First Quarter Results.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)--May 8, 2002 Net Profit for First Quarter 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 first quarter of 2002. Total revenues for the first quarter of 2002 increased 116.7% to $35,230,141 over the same quarter of 2001. Net premiums earned for the first quarter of 2002 increased 9.2% to $14,599,237 over the same quarter of 2001. Net earnings for the first quarter of 2002 increased 62% to $2,045,531, or $.42 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 4.9 million average shares outstanding, compared with $1,261,776, or $0.25 per diluted share on 5.0 million average shares outstanding for the first quarter of 2001. In connection with the development of the Harbour Village Golf & Yacht yacht: see motorboating; sailing. yacht Sail- or motor-driven vessel used for racing or recreation. The term is popularly applied to large recreational engine-powered boats; the sailboats known as yachts and used for racing are usually light and Club 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]. , during the first quarter of 2002, 66 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 25 boat slips were closed in Phase 1, resulting in total revenues of $19.0 million and pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income of $2.3 million. The Company previously reported that one of the Company's former reinsurers, Berkley Berkley (bûr`klē), city (1990 pop. 16,960), Oakland co., SE Mich., a suburb of Detroit; inc. 1932. It is chiefly residential. Insurance Company, has disputed its obligations under several reinsurance treaties Reinsurance Treaty (June 18, 1887) Secret agreement between Germany and Russia. Arranged by Otto von Bismarck after the collapse of the Three Emperors' League, it provided that each party would remain neutral if either became involved in a war with a third nation, and that entered into during the "soft 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. market" that existed in 1998 and 1999. On April 5, 2002, the Company demanded arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the against the reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. to collect the amounts owed. Berkley is a subsidiary of W.R. Berkley Corp. (NYSE: BER (1) (Basic Encoding Rules) A set of encoding rules for ASN.1 notation, which is a method for defining data structures. See ASN.1. (2) (Bit Error Rate) The average number of bits transmitted in error. See BERT. 1. ). The Company does not believe that this dispute will have a material adverse effect on the overall financial condition or liquidity of the Company. The book value of the Company decreased to $12.75 per share at March 31, 2002 as compared to $12.77 at December December: see month. 31, 2001, primarily as a result of unrealized losses Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on our bond portfolio due to increased interest rates during the quarter. Commenting on the results, Lloyd A. Fox, President and Chief Executive Officer, said, "We are very pleased with our first quarter results and the profitability of both our insurance and real estate development groups. Our insurance group's growth in the first quarter is a result of premium increases in our most profitable lines of business, which bodes well for further growth in these areas. The progress of closings of condominium units at the Harbour Village Golf & Yacht Club development continues, with 66 condominium units and 25 boat slips in Phase 1 closing during the first quarter, resulting in $19 million of revenue and $2.3 million of pre-tax profit. We are also pleased to have declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. the Company's second dividend in the second quarter." "Due to Berkley Insurance Company's refusal REFUSAL. The act of declining to receive or to do something. 2. A grantee may refuse a title, vide Assent; one appointed executor may refuse to act as such. to pay reinsurance under our treaties, we have demanded arbitration to collect amounts that Berkley unjustly refuses to pay. Collection of these amounts will be pursued vigorously vig·or·ous adj. 1. Strong, energetic, and active in mind or body; robust. See Synonyms at healthy. 2. Marked by or done with force and energy. See Synonyms at active. ." A conference call to discuss first quarter 2002 is scheduled for Thursday Thursday: see week. , May 9, at 11:00 a.m. E.S.T., which will be broadcast through the Investor Broadcast Network's Vcall website at http://www.vcall or the Company's website at http://www.americansafetygroup.com. American Safety Insurance Group, Ltd. is a specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. insurance holding company which, through its subsidiaries, develops, underwrites, manages and markets primary casualty insurance and reinsurance programs in the alternative insurance market for environmental risks and other specialty risks. The Company is also the owner/developer of the Harbour Village Golf & Yacht Club, a residential condominium, marina Marina “a piece of virtue.” [Br. Lit.: Pericles] See : Virtuousness , par 3 golf course and beach club development in Ponce Inlet, Florida. 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, including the Company's future profitability and the value of the Company's real estate development project. Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially, and are subject to change based on various factors, including competitive conditions in the insurance industry, levels of new and renewal insurance business, unpredictable developments in loss trends, adequacy and changes in loss reserves, collectibility of reinsurance recoverables, market acceptance of new coverages and enhancements, changes in reinsurance costs and availability, and 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 materially, and are subject to change based on various real estate development industry 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 real estate development and new construction, increases in construction costs, construction delays, weather, zoning, 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. , changes in interest rates and the availability of mortgage financing for prospective purchasers of condominium 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. AND SUBSIDIARIES
Financial and Operating Highlights
Three Months Ended
March 31,
2002 2001
INCOME STATEMENT DATA:
Revenues:
Direct and assumed
premiums earned 34,093,798 29,229,216
Ceded premiums earned (19,494,561) (15,860,198)
------------ ------------
Net premiums earned 14,599,237 13,369,018
Net investment income 975,557 857,512
Interest on notes receivable - 275,932
Brokerage commission income 65,126 490,943
Management fees from related party 417,427 363,805
Net realized gains 82,247 239,519
Real estate income 19,038,740 -
Other income 51,807 659,859
------------ ------------
Total Revenues 35,230,141 16,256,588
------------ ------------
Expenses:
Losses and loss adjustment expenses 8,969,141 8,097,967
Acquisition expenses 3,098,297 3,105,728
Payroll and related expenses 2,101,748 2,086,937
Real estate expenses 16,695,328 385,930
Other expenses 1,135,589 1,278,859
Expense due to rescission 210,748 -
------------ ------------
Total expenses 32,210,851 14,955,421
------------ ------------
Earnings before income taxes 3,019,290 1,301,167
Income taxes 973,759 39,391
------------ ------------
Net earnings 2,045,531 1,261,776
------------ ------------
Net earnings per share:
Basic $ 0.43 $ 0.26
============ ============
Diluted $ 0.42 $ 0.25
============ ============
Average number of shares outstanding:
Basic 4,704,505 4,882,375
============ ============
Diluted 4,863,370 4,962,112
============ ============
GAAP combined ratio 87.2% 91.0%
============ ============
BALANCE SHEET DATA: March 31, December 31,
2002 2001
Total investments excluding real
estate $ 81,141,931 $ 83,578,373
Total assets 305,846,668 297,261,617
Unpaid losses and loss adjustment
expenses 133,016,708 121,423,039
Total liabilities 245,413,147 237,281,279
Total shareholders' equity 60,433,521 59,980,338
Book value per share $ 12.75 $ 12.77
Harbour Village Development Status
(000)s except references to Condo Units
Phase 1
Townhouses
Marina Oak
Condos Hammock Riverwalk
3/31/2002
Planned Number of Condo Units
and Boat Slips 248 18 28
Condo Units and Boat Slips
under Contract 245 14 28
Value of Pre-sale Contracts
(Note 1) 61,985 6,530 10,638
Number of Buildings 8 4 6
Number of Buildings Complete
by Task
Building Foundation 8 4 4
Vertical Building Completed 8 3 2
Interior Finish Completed 7 - -
Certificate of Occupancy Received 6 - -
Actual 3/31/2002 YTD
Units Closed 66 - -
Revenue Recognized $ 16,815 - -
Other Revenue
Total Revenue
Gross Profit Recognized $ 2,348 - -
Other Expense (Income)
Items (Note 2)
Pre-Tax Profit
Projected Outlook For
2nd Quarter of 2002
Units to Close 56 - -
Revenue to be Recognized $ 14,308 - -
Other Revenue - Projected
Total Revenue ? Projected
Gross Profit to be
Recognized - Projected $ 1,849 - -
Other Expense (Income) Items
? Projected (Note 2)
Pre-Tax Profit - Projected
Harbour Village Development Status Cont'd
Phase 2
The The
Links Links Total Boat
North South Condos Slips Total
3/31/2002
Planned Number of
Condo Units and
Boat Slips 188 188 670 142 812
Condo Units and
Boat Slips under
Contract 132 - 419 138 557
Value of Pre-sale
Contracts (Note 1) 32,829 - 111,982 12,619 124,601
Number of Buildings 4 4 26
Number of Buildings
Complete by Task
Building Foundation 2 -
Vertical Building
Completed - -
Interior Finish
Completed - -
Certificate of
Occupancy Received - -
Actual 3/31/2002 YTD
Units Closed - 66 25 91
Revenue Recognized - $ 16,815 $ 2,012 $ 18,827
Other Revenue 212
Total Revenue 19,039
Gross Profit
Recognized - $ 2,348 $ 842 $ 3,190
Other Expense (Income)
Items (Note 2) 847
Pre-Tax Profit 2,343
Projected Outlook For
2nd Quarter of 2002
Units to Close - 56 16 72
Revenue to be
Recognized - $ 14,308 $ 1,159 $ 15,467
Other Revenue -
Projected 150
Total Revenue -
Projected 15,617
Gross Profit to be
Recognized - Projected - $ 1,849 $ 453 $ 2,302
Other Expense (Income)
Items - Projected
(Note 2) 898
Pre-Tax Profit -
Projected 1,404
Note 1 - No assurance can be given that purchasers under binding pre-sale contracts with deposits will close each contemplated transaction. Note 2 - Other includes net brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. commissions, advertising, promotion, and other general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . These items are not allocated to specific buildings. The projected results contained above for unit closings, revenue, gross profit, fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). and pre-tax profit are forward looking statements. With respect to the Company's development of the Harbour Village property, such forward looking statements involve risks and uncertainties which may cause actual results to differ materially, and are subject to change based on various real estate development industry factors, including competitive housing conditions in the local market area, risks inherent in real estate development and new construction, increases in construction costs, construction delays, weather, litigation, changes in interest rates and the availability of mortgage financing for prospective purchasers of condominium units and boat slips and changes in local and national levels of general business activity and economic conditions. |
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