Atlantic Mutual Reports Third Quarter Financial Results.NEW YORK--(BUSINESS WIRE)--Nov. 16, 1998--The Atlantic Mutual Companies (Atlantic) today reported statutory financial results (unaudited) for the third quarter and nine months ended September September: see month. 30, 1998. Net income for the three months ended September 30, 1998 was $7.6 million, compared to $12.6 million for the same period in 1997. On a year to date basis, net income amounted to $18.3 million compared to net income of $24.4 million for the first nine months of 1997. Atlantic reported heavier than normal weather related catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). losses for the quarter, while experiencing better than expected results from its core business areas. The catastrophe losses for the first nine months of 1998 totaled $15.2 million on a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern basis, compared to just $3.0 million for the same period in 1997. Atlantic's gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. for the nine months ended September 30, 1998 exceeded 1997 by 6.0%. Continued success from business development initiatives begun in recent years was the primary driver for the growth in premiums. Pretax investment income for the nine months ended September 30, 1998, exclusive of capital gains, increased by 7.1% from the prior year. Interest expense for the nine months ended September 30, 1998 on the surplus note issued in February February: see month. 1998 amounted to $4.2 million. Realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. for the nine months ended September 30, 1998 and 1997 were $13.3 million and $11.2 million, respectively. The Atlantic Mutual Companies offer a range of commercial, personal and marine property/casualty insurance products through independent insurance agents and brokers. The Group's operations are conducted through the Atlantic Mutual Insurance Company, the lead company, the Centennial Insurance Company, the Atlantic 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 Company, the Atlantic Lloyds Insurance Company of Texas, Atlantic Mutual of Bermuda Bermuda (bûrmy  `də), British dependency (2005 est. pop. 65,400), 21 sq mi (53 sq km), comprising some 150 coral rocks, islets, and islands (of which some 20 are inhabited), in the Limited and Atlantic Risk Services, Inc. The Atlantic Mutual
Insurance Company, formed in 1842, is a mutual insurance company owned
by its policyholders and has no capital stock and no shareholders. With
1997 net premiums written of $579.5 million, the Atlantic Mutual
Companies ranks among the top 75 U.S. property-casualty insurance
groups. Additional information about the Atlantic Mutual Companies can
be found on the Internet InternetPublicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.atlanticmutual.com. Editor's Note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : See following tables for detail -0-
ATLANTIC MUTUAL COMPANIES
STATUTORY FINANCIAL INFORMATION (UNAUDITED)
(000s OMITTED)
Three Months Ended Nine Months Ended
September 30 September 30
1998 1997 1998 1997
---- ---- ---- ----
Statutory Statement
of Income Data
(Unaudited):
Net Premiums
Written 151,863 124,968 453,903 421,613
======== ======== ======== ========
Net Premiums
Earned 152,779 142,718 440,601 433,768
-------- -------- -------- --------
Losses and LAE
Incurred 104,054 104,264 316,850 313,521
Underwriting
Expenses Incurred 55,086 45,106 160,443 148,690
-------- -------- -------- --------
Total Underwriting
Deductions 159,140 149,370 477,293 462,211
-------- -------- -------- --------
Underwriting
Profit (Loss) (6,361) (6,652) (36,692) (28,443)
Net Investment
Income 21,382 20,025 62,487 58,334
Interest Expense
on Surplus Note (4,188) -- (4,188) --
-------- -------- -------- --------
Operating Income
Before Dividends
and Other Expenses 10,833 13,373 21,607 29,891
Policyholder
Dividends Declared (2,292) (1,918) (9,081) (7,942)
Other Expenses (31) (35) (93) (97)
-------- -------- -------- --------
Operating Income 8,510 11,420 12,433 21,852
Realized Gains
on Investments 2,876 4,617 13,277 11,219
-------- -------- -------- --------
Income Before
Income Taxes 11,386 16,037 25,710 33,071
Federal and
Foreign Income
(Tax) Benefit (3,800) (3,400) (7,400) (8,700)
-------- -------- -------- --------
Net Income 7,586 12,637 18,310 24,371
======== ======== ======== ========
Statutory Ratios
(Unaudited):
Loss and LAE
Ratio 68.1 73.1 71.9 72.3
Underwriting
Expense Ratio 36.3 36.1 35.3 35.3
Dividend Ratio 1.5 1.3 2.1 1.8
-------- -------- -------- --------
Combined Ratio 105.9 110.5 109.3 109.4
======== ======== ======== ========
Statutory Balance Sheet Data,
At Period End (Unaudited): Sept. 30, 1998 Dec. 31, 1997
-------------- -------------
Total Investments $1,431,384 $1,395,820
Total Assets 1,716,523 1,675,093
Total Liabilities 1,198,416 1,222,609
Total Policyholders' Surplus 518,107 452,484
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