American Safety Insurance Group Reports Third Quarter Results; Net Earnings Up 144%.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. 9, 1998--American Safety Insurance Group, Ltd. (Nasdaq/NM:AMSFF) today announced results for the third quarter and nine months ended September September: see month. 30, 1998. Net earnings for the third quarter of 1998 increased 144% to $1,598,183, or $0.26 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 $655,769, or $0.22 per diluted share on 3 million average shares outstanding for the same quarter in 1997. Net premiums earned for the third quarter of 1998 decreased 40% to $1,799,875 compared with the same quarter of 1997, substantially attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a decrease in bail bond A written promise signed by a defendant or a surety (one who promises to act in place of another) to pay an amount fixed by a court should the defendant named in the document fail to appear in court for the designated criminal proceeding at the date and time specified. premium production, which line of business has a low margin. Total net investment income and interest on notes receivable increased 151% to $1,616,339 over the same quarter of 1997. Total revenues for the third quarter of 1998 decreased 9% to $3,893,221 compared with the same quarter of 1997, reflecting the decrease in bail bond premium. For the nine months ended September 30, 1998, net earnings rose 89% to $4,203,743, or $0.75 per diluted share on 5.6 million average shares outstanding, compared with $2,222,291, or $0.75 per diluted share on 3 million average shares outstanding for the same period in 1997. Net premiums earned for the first nine months of 1998 decreased 7% to $6,077,423 compared with the same period in 1997, reflecting the decrease in bail bond premium. Total net investment income and interest on notes receivable increased 109% to $3,793,727 over the same period in 1997. Total revenues for the first nine months of 1998 rose 11% to $11,482,305 compared with $10,352,274 for the same period in 1997. The Company also announced that Joseph D. Scollo is joining the Company later this month as Senior Vice President - Operations. Previously, Mr. Scollo held the same position with United Coastal Insurance Company, New Britain, Connecticut New Britain is a city in Hartford County, Connecticut, 9 miles (14 km) southwest of Hartford. According to 2006 Census Bureau estimates, the population of the city is 71,254. , since 1989. Mr. Scollo has extensive experience in 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. and environmental insurance, 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. , finance and accounting, and operations. Commenting on the results, Lloyd A. Fox, President and Chief Executive Officer, said, "We are pleased with the continued growth and success of the Company's operations through the third quarter of 1998. Our core insurance programs in the environmental and employee leasing areas have experienced continued growth this year, with employee leasing workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. premium up substantially in the third quarter. Our evaluation and development of new programs continues to be active and we have experienced strong business submission Submission Elliott, Anne reluctantly gives up her fiancé on her family’s advice. [Br. Lit.: Jane Austen Persuasion in Magill I, 734] activity as a result of our increased financial size rating and financial strength. We are involved in the evaluation of several acquisition opportunities, including an excess and surplus lines carrier to provide increased capability to our group to respond to new specialty insurance opportunities. We are also extremely pleased to have Joe Scollo join our management team, and believe that his extensive experience in the environmental and surplus lines insurance areas will be of significant benefit to the growth of our specialty insurance business." 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. is a specialty 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 Nine Months Ended
September 30, September 30,
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INCOME STATEMENT DATA: 1998 1997 1998 1997
--------- ---------- --------- ---------
Revenues:
Direct and assumed
premiums earned $2,963,022 $3,713,116 $9,453,207 $8,023,115
Ceded premiums earned (1,163,147) (730,717) (3,375,784) (1,517,209)
--------- --------- --------- ---------
Net premiums earned 1,799,875 2,982,399 6,077,423 6,505,906
Net investment income 825,279 465,885 2,307,049 1,177,217
Interest on notes
receivable 791,060 178,939 1,486,678 635,504
Brokerage commission
income 229,392 484,970 890,342 1,564,706
Management fees from
related party 183,186 157,034 549,722 443,950
Net realized gains
(losses) 60,529 9,357 155,608 14,243
Other income 3,900 2,081 15,483 10,748
--------- --------- ---------- ----------
Total revenues 3,893,221 4,280,665 11,482,305 10,352,274
========= ========= ========== ==========
Expenses:
Losses and loss
adjustment expenses 1,150,611 1,524,045 3,621,763 3,533,048
Acquisition expenses (85,635) 1,155,052 334,584 1,768,834
Other expenses 1,299,582 854,355 3,352,077 2,445,573
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Total expenses 2,364,558 3,533,452 7,308,424 7,747,455
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Earnings before
income taxes 1,528,663 747,213 4,173,881 2,604,819
Income taxes (benefit) (69,520) 91,444 (29,862) 382,528
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Net earnings $1,598,183 $655,769 $4,203,743 $2,222,291
========= ========= ========== ==========
Net earnings per share:
Basic $ 0.26 $ 0.23 $ 0.76 $ 0.77
========= ========= ========== ==========
Diluted $ 0.26 $ 0.22 $ 0.75 $ 0.75
========= ========= ========== ==========
Average number of
shares outstanding:
Basic 6,074,770 2,872,830 5,522,497 2,872,830
========= ========= ========== ==========
Diluted 6,119,089 2,974,133 5,607,457 2,974,133
========= ========= ========== ==========
GAAP combined ratio 68.0% 92.2% 68.8% 88.0%
========= ========= ========== ==========
Sept. 30, Dec. 31,
BALANCE SHEET DATA: 1998 1997
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Total investments $52,500,772 $29,340,654
Total assets 85,650,956 47,668,200
Unpaid losses and loss adjustment expenses 12,677,533 11,571,539
Total liabilities 27,653,851 25,827,304
Total shareholders' equity 57,997,105 21,840,896
Book value per share $ 9.55 $ 7.47
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