American Safety Insurance Group, Ltd. Reports Record Profit for First 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)--May 9, 2001 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 ended March 31, 2001. 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 2001 increased 191% to a profit of $1,658,150, or $.33 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 5.0 million average shares outstanding, compared with a loss of $1,822,706, or $.31 per diluted share on 5.9 million average shares outstanding for the first quarter of 2000. Net earnings for the first quarter of 2001 increased 197% to a profit of $1,897,669, or $.38 per diluted share on 5.0 million average shares outstanding, compared with a loss of $1,948,753, or $0.33 per diluted share on 5.9 million average shares outstanding for the first quarter of 2000. Total revenues for the first quarter of 2001 increased 146% to $16,256,588 over the same quarter of 2000. Net premiums earned for the first quarter of 2001 increased 229% to $13,369,018 over the same quarter of 2000. The book value of the Company increased 6% to $12.24 per share at March 31, 2001 as compared to $11.53 per share at December December: see month. 31, 2000. Commenting on the results, Lloyd A. Fox, President and Chief Executive Officer, said, "We are extremely pleased to report record earnings for the first quarter, continuing the positive earnings reported in the third and fourth quarters of 2000. In addition to the record first quarter earnings, our net premiums earned for the first quarter were 229% above the same period last year, and total revenues increased 146% over first quarter 2000. Over the past year, we have successfully grown both our 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. operations, and we believe that the investments we have made in our core and newer business units will continue to contribute to our profitability throughout 2001. Construction 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 project 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]. is continuing, with construction of the marina Marina “a piece of virtue.” [Br. Lit.: Pericles] See : Virtuousness nearly completed. It is anticipated that the first residential 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 will be closed in the third quarter of 2001. Pre-sales of condominium units and boat slips have reached $90 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." A conference call to discuss first quarter of 2001 results is scheduled for Thursday Thursday: see week. , May 10, 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 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 and other specialty risks, and provides a broad range of financial services and products to middle market businesses. The Company is also the owner/developer of the Harbour Village Golf & Yacht Club, a residential condominium, marina and golf course project 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. 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 reinsurance costs and availability, and changes in levels of general business activity and economic conditions. With respect to the development of the Harbour Village project, 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.
Financial and Operating Highlights
Three Months Ended
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March 31,
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Unaudited
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2001 2000
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INCOME STATEMENT DATA:
Revenues:
Direct and assumed premiums earned $ 29,229,216 $ 6,567,360
Ceded premiums earned (15,860,198) (2,504,037)
---------------- ---------------
Net premiums earned 13,369,018 4,063,323
Net Investment income 857,512 729,102
Interest on notes receivable 275,932 434,594
Brokerage commission income 490,943 473,139
Management fees from related party 363,805 367,000
Net realized gains (losses) 239,519 (126,047)
Other income 659,859 656,162
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Total revenues 16,256,588 6,597,273
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Expenses:
Losses and Loss adjustment expenses 8,097,967 2,797,099
Acquisition expenses 2,142,255 763,048
Payroll and related expenses 2,299,437 1,628,224
Other expenses 1,452,289 886,066
Expense due to rescission - 3,541,848
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Total expenses 13,991,948 9,616,285
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Earnings (loss) before income taxes 2,264,640 (3,019,012)
Income taxes (benefit) 366,971 (1,070,259)
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Net earnings (loss) $ 1,897,669 $ (1,948,753)
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Net earnings (loss) per share
Basic $ 0.39 $ (0.33)
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Diluted $ 0.38 $ (0.33)
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Average number of shares outstanding:
Basic 4,882,375 5,926,654
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Diluted 4,962,112 5,931,996
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GAAP combined ratio 85.7% 102.1%
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BALANCE SHEET DATA: March 31, December 31
2001 2000
Unaudited
Total investments $ 66,160,454 $ 61,460,355
Total assets 228,884,457 207,298,116
Unpaid losses and loss adjustment
expenses 64,649,518 50,508,627
Total liabilities 170,089,133 149,494,971
Total shareholders' equity 58,795,324 57,803,145
Book value per share $ 12.24 $ 11.53
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