American Safety Insurance Group, Ltd. Reports Third Quarter Results; Net Premiums Earned Up 125% 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)--Nov. 8, 1999-- 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, 1999. Total revenues for the third quarter of 1999 increased 55% to $6,045,125 compared with $3,893,221 for the same quarter in 1998. Net premiums earned for the third quarter of 1999 increased 125% to $4,040,984 over the same quarter of 1998. Other income increased to $141,882 from $3,900 as a result of income generated from operations of the Company's 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. unit, American Safety Financial Corp. 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 1999 decreased 19% to $1,239,056, or $.21 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 6.0 million average shares outstanding, compared with $1,537,654, or $.25 per diluted share on 6.1 million average shares outstanding, for the third quarter of 1998. Net earnings for the third quarter of 1999 decreased 15% to $1,359,263, or $.23 per diluted share, compared with $1,598,183, or $.26 per diluted share, for the third quarter of 1998. For the nine months ended September 30, 1999, total revenues increased 43% to $16,430,792 compared with $11,482,305 for the same period in 1998. Net premiums earned increased 66% to $10,096,149 over the same period in 1998. Total net investment income and interest on notes receivable increased 10% to $4,179,810 over the same period in 1998. Net operating earnings rose 6% to $4,301,774, or $.71 per diluted share on 6.1 million average shares outstanding, compared with $4,048,135, or $.72 per diluted share on 5.6 million average shares outstanding for the same period in 1998. Net earnings rose 8% to $4,519,838, or $.74 per diluted share, compared with $4,203,743, or $.75 per diluted share, for the same period in 1998. The book value of the Company has increased 8% to $10.32 per share at September 30, 1999 as compared to $9.55 at September 30, 1998. The Company's share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program bought 127,350 shares of common stock during the third quarter of 1999 and has bought a total of 143,550 shares of common stock during the first nine months of 1999. Both net operating earnings and net earnings for the third quarter of 1999 and for the nine months ended September 30, 1999, were affected by increased operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the addition of personnel in connection with the Company's new insurance business units and the loss of interest on notes receivable as a result of the previously announced foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. on property located 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]. . Absent the effect of the reduction in interest on notes receivable as a result of this foreclosure, net operating earnings for the third quarter of 1999 would have been $.26 per diluted share, compared with $.25 for the third quarter of 1998, and net earnings would have been $.28 per diluted share for the third quarter of 1999, compared with $.26 for the third quarter of 1998. For the nine months ended September 30, 1999, net operating earnings would have been $.83 per diluted share, compared with $.72 per diluted share for the first nine months of 1998, and net earnings would have been $.83 per diluted share, compared with $.75 per share for the first nine months of 1998. Management expects that the sale of the property will occur at a price substantially in excess of the Company's investment, which will offset the reduction in interest on notes receivable that has been experienced in 1999. Commenting on the results, Lloyd A. Fox, President and Chief Executive Officer, said , "We are very pleased to report the continued growth of our operations. The Company's premiums continue to grow at a healthy pace and our new insurance business units are already adding to our premium base. Our ongoing efforts to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. efficiencies in our management structure are also expected to contribute to our future growth and success. While increases in personnel costs have been incurred to develop new 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 and to add to our claims and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. infrastructure, these investments will enable the Company to further its strategy of diversifying its products and services and continuing its growth and profitability. We are pleased that all of the Company's 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 units are contributing to our growth and success." American Safety Insurance Group, Ltd. is a specialty insurance and financial services 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. Additional information about the Company can be found at www.americansafetygroup.com. Any 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 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 levels of general business activity and economic conditions, and other factors identified in the Company's filings with the Securities and Exchange Commission. -0-
AMERICAN SAFETY INSURANCE GROUP, LTD.
Financial and Operating Highlights
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------------------------------
INCOME STATEMENT
DATA: 1999 1998 1999 1998
------------ ------------ ------------ ------------
Revenues:
Direct and
assumed
premiums
earned $ 5,805,483 $ 2,963,022 $ 14,290,622 $ 9,453,207
Ceded premiums
earned (1,764,499) (1,163,147) (4,194,473) (3,375,784)
------------ ------------ ------------ ------------
Net premiums
earned 4,040,984 1,799,875 10,096,149 6,077,423
Net investment
income 746,194 825,279 2,159,959 2,307,049
Interest on
notes
receivable 512,289 791,060 2,019,851 1,486,678
Brokerage
commission
income 276,800 229,392 771,034 890,342
Management fees
from related
party 206,769 183,186 562,804 549,722
Net realized
gains 120,207 60,529 218,064 155,608
Other income 141,882 3,900 602,931 15,483
----------- ------------ ------------ ------------
Total revenues 6,045,125 3,893,221 16,430,792 11,482,305
----------- ------------ ------------ ------------
Expenses:
Losses and loss
adjustment
expenses 2,147,664 1,150,611 5,567,194 3,621,763
Acquisition
expenses 605,281 (85,635) 1,276,697 334,584
Payroll and
related
expenses 1,153,340 866,008 3,496,027 2,498,671
Other expenses 591,804 433,574 1,537,254 853,406
----------- ------------ ------------ ------------
Total expenses 4,498,089 2,364,558 11,877,172 7,308,424
----------- ------------ ------------ ------------
Earnings before
income taxes 1,547,036 1,528,663 4,553,620 4,173,881
Income taxes
(benefit) 187,773 (69,520) 33,782 (29,862)
----------- ------------ ------------ ------------
Net earnings $ 1,359,263 $ 1,598,183 $ 4,519,838 $ 4,203,743
=========== ============ ============ ============
Net earnings
per share:
Basic $ 0.23 $ 0.26 $ 0.75 $ 0.76
=========== ============ ============ ============
Diluted $ 0.23 $ 0.26 $ 0.74 $ 0.75
=========== ============ ============ ============
Average number
of shares
outstanding:
Basic 6,009,208 6,074,770 6,050,059 5,522,497
=========== ============ ============ ============
Diluted 6,027,667 6,119,089 6,077,770 5,607,457
=========== ============ ============ ============
GAAP combined
ratio 76.4% 68.0% 73.4% 68.8%
=========== ============ ============ ============
Sept. 30, Dec. 31,
BALANCE SHEET DATA: 1999 1998
----------- -----------
(Unaudited)
Total investments $60,624,074 $51,047,769
Total assets 97,424,494 86,147,472
Unpaid losses and loss adjustment expenses 18,311,237 14,700,473
Total liabilities 36,162,477 26,878,179
Total shareholders' equity 61,262,017 59,269,293
=========== ===========
Book value per share $ 10.32 $ 9.76
=========== ===========
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