American Safety Insurance Group, Ltd. Reports First Quarter Results Net Operating Earnings Up 74% for Quarter.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 10, 1999-American 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 ended March 31, 1999. 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 first quarter of 1999 increased 74% to $1,720,296, or $.28 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 6.1 million average shares outstanding, compared with $986,587, or $0.22 per diluted share on 4.5 million average shares outstanding for the first quarter of 1998. Net earnings for the first quarter of 1999 increased 68% to $1,719,178, or $.28 per diluted share, compared with $1,023,733, or $.23 per diluted share, for the first quarter of 1998. Net premiums earned for the first quarter of 1999 increased 17% to $2,454,784 over the same quarter of 1998. Total revenues for the first quarter of 1999 increased 33% to $4,767,724 over the same quarter of 1998. Commenting on the results, Lloyd A. Fox, President and Chief Executive Officer, said, "We are pleased with the strong growth of our earnings during the first quarter, both on an operating and net basis. Operating earnings grew 74% over the same quarter last year, and net earnings increased 68% over the same period. We have experienced strong earnings growth throughout our first year as a public company and this trend has continued into 1999. Written and earned premiums 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. from our insurance operations continue to grow and we have launched several new 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 programs in 1999. In addition, our new 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. subsidiary, 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 Financial Corp., is actively involved in several transactions. We have also identified several strategic acquisition candidates and are proceeding with discussions and due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. activities. We are excited about the growth that we have experienced, and the opportunities that we have going forward." American Safety Insurance Group, Ltd. is a specialty insurance and financial services holding 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, as well as providing a broad range of financial services and products to middle market businesses. The 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. in this news release involve risks and uncertainties 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, and changes in levels of general business activity and economic conditions. -0-
AMERICAN SAFETY INSURANCE GROUP, LTD.
Financial and Operating Highlights
(Unaudited)
Three Months Ended
March 31,
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INCOME STATEMENT DATA: 1999 1998
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Revenues:
Direct and assumed premiums earned $ 3,799,768 $ 3,118,839
Ceded premiums earned (1,344,984) (1,026,009)
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Net premiums earned 2,454,784 2,092,830
Net investment income 699,335 626,649
Interest on notes receivable 926,102 268,215
Brokerage commission income 430,867 384,041
Management fees from related party 179,233 170,749
Net realized gains (losses) (1,118) 37,146
Other income 78,521 6,700
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Total revenues 4,767,724 3,586,330
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Expenses:
Losses and loss adjustment expenses 1,319,355 1,335,177
Acquisition expenses 323,444 213,379
Payroll and related expenses 1,003,636 802,738
Other expenses 447,841 157,066
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Total expenses 3,094,276 2,508,360
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Earnings before income taxes 1,673,448 1,077,970
Income taxes (benefit) (45,730) 54,237
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Net earnings $ 1,719,178 $ 1,023,733
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Net earnings per share:
Basic $ 0.28 $ 0.23
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Diluted $ 0.28 $ 0.23
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Average number of shares outstanding:
Basic 6,077,750 4,429,730
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Diluted 6,108,541 4,510,455
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GAAP combined ratio 70.3% 74.2%
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March 31, Dec. 31,
BALANCE SHEET DATA: 1999 1998
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(Unaudited)
Total investments $50,009,234 $51,047,769
Total assets 92,082,515 86,147,470
Unpaid losses and loss adjustment
expenses 16,139,827 14,700,473
Total liabilities 31,654,210 26,878,177
Total shareholders' equity 60,428,305 59,269,293
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Book value per share $ 9.94 $ 9.76
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