American Safety Insurance Group, Ltd. Reports Net Profit for Third Quarter.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)--Nov. 8, 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 third quarter and nine months ended September September: see month. 30, 2000. 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 third quarter of 2000 decreased to $663,178, or $.12 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 5.4 million average shares outstanding, compared with earnings of $1,239,056, or $.21 per diluted share on 6.0 million average shares outstanding for the third quarter of 1999. Net earnings for the third quarter of 2000 decreased to $653,826, or $.12 per diluted share, compared with net earnings of $1,359,263, or $.23 per diluted share, for the third quarter of 1999. Total revenues for the third quarter of 2000 increased 106% to $11,895,198 compared with $5,766,039 for the same quarter of 1999. Net premiums earned for the third quarter of 2000 increased 172% to $9,579,864 over the same quarter of 1999. For the nine months ended September 30, 2000, net operating earnings decreased to a loss of $1,571,961, or $.28 per diluted share on 5.6 million average shares outstanding (including the first quarter charge due to the Company's rescission The abrogation of a contract, effective from its inception, thereby restoring the parties to the positions they would have occupied if no contract had ever been formed. By Agreement of the acquisition of the Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). agency and two related insurance companies), compared with earnings of $4,301,774, or $.71 per diluted share on 6.1 million average shares outstanding over the same period in 1999. Net earnings decreased to a loss of $1,787,024, or $.32 per diluted share, compared with earnings of $4,519,838, or $.74 per diluted share for the same period in 1999. Total revenues increased 67% to $27,626,964 compared with $16,521,259 over the same period in 1999. Net premiums earned increased 119% to $20,938,975 over the same period in 1999. Commenting on the results, Lloyd A. Fox, President and Chief Executive Officer, said: "We are pleased to report earnings of $654,000 for the third quarter. The continued growth of our insurance operations during the third quarter resulted in a 172% increase in net premiums earned and a 106% increase in total revenues over the same period in the prior year. For the first nine months of 2000, net premiums earned increased 119% and total revenues increased 67% over the same period in 1999. Our newer 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 continue to increase production. Our program business premium continues to grow, as does the premium in our excess and surplus lines company, American Safety Indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. Company, which was acquired earlier this year. We expect that our insurance operations will continue to produce profits, as they did in the third quarter. 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 Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , construction of the first four buildings and marina Marina “a piece of virtue.” [Br. Lit.: Pericles] See : Virtuousness is continuing, and we expect the first 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 to be delivered during the second quarter of 2001. Pre-sales of condominiums and boat slips are now $60 million. We are pleased with the progress of this project, which we expect will provide significant value to our shareholders over the anticipated three to five year development period." 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 and 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. 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, the outcome of the Company's lawsuit lawsuit: see procedure; tort. for rescission of the acquisition of an insurance agency and two related insurance companies, competitive conditions in the insurance industry, unpredictable developments in loss trends, adequacy and 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 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 Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
INCOME STATEMENT DATA:
Revenues:
Direct and assumed
premiums earned $17,519,786 $ 5,290,721 $34,792,821 $13,775,860
Ceded premiums earned (7,939,922) (1,764,499) (13,853,846) (4,194,473)
----------- ----------- ----------- -----------
Net premiums earned 9,579,864 3,526,222 20,938,975 9,581,387
Net investment income 667,623 746,194 2,001,630 2,159,959
Interest on notes
receivable 377,679 512,289 1,252,648 2,019,851
Brokerage commission
income 859,449 276,800 1,812,087 771,034
Management fees from
related party 350,392 339,320 1,068,738 1,064,908
Net realized gains(losses)(9,352) 120,207 (215,063) 218,064
Other income 69,543 245,007 767,949 706,056
----------- ----------- ----------- -----------
Total Revenues 11,895,198 5,766,039 27,626,964 16,521,259
----------- ----------- ----------- -----------
Expenses:
Losses and loss
adjustment expenses 4,980,766 2,147,664 11,801,592 5,567,194
Acquisition expenses 1,961,952 193,644 4,744,783 865,060
Payroll and related
expenses 1,921,571 1,153,340 5,503,629 3,496,027
Other expenses 2,253,160 724,355 5,059,535 2,039,358
Expense due to
rescission - - 3,541,848 -
----------- ----------- ----------- -----------
Total expenses 11,117,449 4,219,003 30,651,387 11,967,639
----------- ----------- ----------- -----------
Earnings before
income taxes 777,749 1,547,036 (3,024,423) 4,553,620
Income taxes 123,923 187,773 (1,237,399) 33,782
----------- ----------- ----------- -----------
Net earnings $ 653,826 $ 1,359,263 $(1,787,024)$ 4,519,838
----------- ----------- ----------- -----------
Net earnings per share:
Basic $ 0.12 $ 0.23 $ (0.32)$ 0.75
=========== =========== =========== ===========
Diluted $ 0.12 $ 0.23 $ (0.32)$ 0.74
=========== =========== =========== ===========
Average number of
shares outstanding:
Basic 5,377,597 6,009,208 5,609,170 6,050,059
=========== =========== =========== ===========
Diluted 5,377,597 6,027,667 5,610,944 6,077,770
=========== =========== =========== ===========
GAAP combined ratio 84.1% 75.9% 89.1% 73.0%
=========== =========== =========== ===========
BALANCE SHEET DATA: September 30, December 31,
2000 1999
Total investments excluding real estate $51,102,469 $47,608,315
Total assets 165,631,415 104,353,534
Unpaid losses and loss adjustment expenses 33,664,871 20,413,236
Total liabilities 107,624,537 43,314,774
Total shareholders' equity 58,006,878 61,038,760
Book value per share $ 10.90 $ 10.56
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