American Safety Insurance Group, Ltd. Reports Fourth Quarter and Year-End Results; Net Earnings Up 77% 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)--March 3, 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 fourth quarter and the fiscal year ended December December: see month. 31, 1998. Net earnings for the fourth quarter of 1998 increased 77% to $1,750,505, or $.29 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 $988,724, or $0.33 per diluted share on 3.0 million average shares outstanding for the fourth quarter of 1997. Net premiums earned for the fourth quarter of 1998 increased 69% to $3,111,191 over the same quarter of 1997. Total revenues for the fourth quarter of 1998 increased 68% to $5,257,544 over the same quarter of 1997. Net earnings for the year ended December 31, 1998 increased 85% to $5,954,248, or $1.04 per diluted share on 5.7 million average shares outstanding, compared with $3,211,015, or $1.08 per diluted share on 3.0 million average shares outstanding for 1997. Net premiums earned for 1998 increased 10% to $9,188,614 from $8,347,107 in 1997. Total revenues for 1998 increased 24% to $16,739,849 from $13,489,836 in 1997. Commenting on the results, Lloyd A. Fox, President and Chief Executive Officer, said, "We are extremely pleased with our financial performance for the fourth quarter of 1998 as well as for the fiscal year ended December 31, 1998. Our earnings have increased significantly during the past year and we have experienced good growth in our core insurance programs in the environmental and employee leasing and staffing areas as well as in our newer programs. We continue to develop new insurance programs, and will soon launch two new insurance programs, for aggregate haulers and limousines. Other programs currently under development are expected to be completed within the next 30 to 60 days. In addition, our efforts in identifying strategic acquisition candidates continue, and several opportunities are currently being evaluated. "Fiscal 1998 was an exciting and positive year for 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. We are quite pleased with our financial and operational performance in our first year as a publicly held company, and believe that our listing on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. last month will further enhance the value of our stock to our shareholders. We look forward to continuing our company's positive growth both in revenues and earnings in 1999." 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 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 remediation Generally, remediation means providing a remedy, so environmental remediation deals with the removal of pollution or contaminants from environmental media such as soil, groundwater, sediment, or surface water for the general protection of human health and the environment or from a risks, employee leasing and staffing industry risks, and other specialty risks. The Company develops specialty insurance coverages and custom-designed risk management programs not generally available in the standard insurance market. 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
Three Months Ended Year Ended
December 31, December 31,
---------------------- ------------------------
INCOME STATEMENT DATA: 1998 1997 1998 1997
Revenues: ---------- ---------- ----------- -----------
Direct and assumed
premiums earned $3,729,498 $2,566,577 $13,182,705 $10,589,692
Ceded premiums earned (618,307) (725,376) (3,994,091) (2,242,585)
---------- ---------- ----------- -----------
Net premiums earned 3,111,191 1,841,201 9,188,614 8,347,107
Net investment income 540,310 469,709 2,847,359 1,646,926
Interest on notes
receivable 922,230 162,635 2,408,908 798,139
Brokerage commission
income 223,501 434,217 1,113,843 1,998,923
Management fees from
related party 163,806 157,369 713,528 601,319
Net realized gains
(losses) 287,622 69,305 443,230 83,548
Other income 8,884 3,126 24,367 13,874
---------- ---------- ----------- -----------
Total revenues 5,257,544 3,137,562 16,739,849 13,489,836
---------- ---------- ----------- -----------
Expenses:
Losses and loss
adjustment
expenses 1,555,270 559,680 5,177,033 4,092,728
Acquisition expenses 675,322 567,049 1,009,906 2,335,883
Other expenses 1,445,829 1,049,107 4,797,906 3,494,680
---------- ---------- ----------- -----------
Total expenses 3,676,421 2,175,836 10,984,845 9,923,291
---------- ---------- ----------- -----------
Earnings before
income taxes 1,581,123 961,726 5,755,004 3,566,545
Income taxes (benefit) (169,382) (26,998) (199,244) 355,530
---------- ---------- ----------- -----------
Net earnings $1,750,505 $ 988,724 $ 5,954,248 $ 3,211,015
========== ========== =========== ===========
Net earnings per share:
Basic $ 0.29 $ 0.33 $ 1.05 $ 1.08
========== ========== =========== ===========
Diluted $ 0.29 $ 0.33 $ 1.04 $ 1.08
========== ========== =========== ===========
Average number of
shares outstanding:
Basic 6,074,770 2,963,931 5,661,700 2,963,931
========== ========== =========== ===========
Diluted 6,106,378 2,963,931 5,738,039 2,963,931
========== ========== =========== ===========
GAAP combined ratio 81.9% 72.0% 73.3% 81.8%
========== ========== =========== ===========
December 31,
BALANCE SHEET DATA: 1998 1997
----------- -----------
Total investments $51,047,769 $29,340,654
Total assets 86,147,470 47,668,200
Unpaid losses and loss
adjustment expenses 14,700,473 11,571,539
Total liabilities 26,878,177 25,827,304
Total shareholders'
equity 59,269,293 21,840,896
========== ==========
Book value per share $ 9.76 $ 7.47
========== ==========
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