EMC Insurance Group Inc. Reports 2005 Second Quarter Results.DES MOINES, Iowa “Des Moines” redirects here. For other uses, see Des Moines (disambiguation). Des Moines (pronounced /dɪˈmɔɪn/ in English, -- EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. Insurance Group Inc. (Nasdaq:EMCI EMCI Envirofacts Master Chemical Integrator EMCI External Memory Control Interface ): Second Quarter 2005 Net Income Per Share -- $0.38 Net Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. Per Share -- $0.34 GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Combined Ratio - 103.9% EMC Insurance Group Inc. (Nasdaq:EMCI) today reported operating income of $0.34 per share for the second quarter ended June June: see month. 30, 2005 compared to operating income of $0.12 per share for the second quarter of 2004(1). Operating income for the six months ended June 30, 2005 was $1.08 per share compared to $0.82 per share for the same period in 2004. Net income, including realized investment gains/losses, was $5,161,000 ($0.38 per share) for the second quarter of 2005 compared to $3,466,000 ($0.30 per share) for the second quarter of 2004. Net income for the six months ended June 30, 2005 was $15,663,000 ($1.15 per share) compared to $11,815,000 ($1.02 per share) for the same period in 2004. Results for the second quarter of 2004 include $2,558,000 ($1,663,000 or $0.14 per share after tax) of 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. associated with a bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. award for bonds issued by MCI Communications This article is about MCI before it merged with WorldCom. For other uses, see MCI. MCI Communications was an American telecommunications company that was instrumental in legal and regulatory changes that led to the breakup of the AT&T monopoly of American telephony and Corporation. "The results reported for the first six months of 2005 are encouraging," stated President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. G. Kelley Kelley may refer to any of the following: People
Premiums earned increased 24.1 percent to $104,202,000 for the three months ended June 30, 2005 from $83,984,000 for the same period in 2004. For the six months ended June 30, 2005, premiums earned increased 22.7 percent to $205,496,000 from $167,443,000 for the same period in 2004. The majority of these increases are attributed to a 6.5 percentage point increase in the Company's aggregate participation interest in the EMC Insurance Companies pooling arrangement that became effective January January: see month. 1, 2005. As a result of this increase, the Company's aggregate participation in the pooling arrangement increased from 23.5 percent to 30.0 percent. The increase in premiums earned also reflects the impact of rate increases that were implemented in the property and casualty insurance business during 2004. On an overall basis, rate competition increased moderately in the property and casualty insurance marketplace during the first six months of 2005; however, there have been indications of more intense rate competition in select territories and lines of business and the Company expects market conditions to remain competitive for the remainder of the year. The Company will continue to implement rate increases in those lines of business and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. territories where such action is warranted, but the overall level of these rate increases is expected to be smaller than those implemented during 2004. Investment income increased 48.6 percent to $10,201,000 for the three months and 35.3 percent to $19,132,000 for the six months ended June 30, 2005 from $6,866,000 and $14,140,000 for the same periods in 2004. These increases are primarily attributed to additional interest income earned on $107,801,000 of cash received from Employers Mutual Casualty Company in the first quarter of 2005 in connection with the change in the pooling arrangement and the $34,890,000 of net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). received in October October: see month. 2004 from the Company's follow-on fol·low-on adj. Following as a related or consequent aspect or development: "Such contracts involve follow-on sales of maintenance services" Christian Science Monitor. stock offering. The Company experienced $2,051,000 ($1,333,000 or $0.10 per share after tax) of adverse development on prior years' reserves during the second quarter of 2005. For the second quarter of 2004, adverse development on prior years' reserves totaled $5,997,000 ($3,898,000 or $0.34 per share after tax) and included $2,940,000 ($1,910,000 or $0.17 per share after tax) of bulk loss and settlement expense reserves. For the first six months of 2005, the Company had favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. development on prior years' reserves of $3,836,000 ($2,493,000 or $0.18 per share after tax) compared to adverse development of $2,207,000 ($1,435,000 or $0.12 per share after tax) for the same period in 2004. Catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). and storm losses declined to $5,980,000 ($0.29 per share after tax) in the second quarter of 2005 from $7,197,000 ($0.40 per share after tax) in the second quarter of 2004. For the first six months of 2005, catastrophe and storm losses totaled $8,606,000 ($0.41 per share after tax) compared to $8,212,000 ($0.46 per share after tax) for the same period in 2004. The Company's GAAP combined ratio was 103.9 percent in the second quarter of 2005 compared to 107.0 percent in the second quarter of 2004. For the first six months of 2005, the GAAP combined ratio was 99.3 percent compared to 100.4 percent for the same period in 2004. At June 30, 2005, consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: assets totaled $1.1 billion, including $0.9 billion in the investment portfolio; stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was $243.3 million; and net book value of the Company's stock was $17.88 per share, an increase of 6.2 percent from $16.84 per share at December December: see month. 31, 2004. Operating results for the first six months of 2005 are in line with expectations and management has reaffirmed its 2005 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 guidance of $2.15 to $2.40 per share. The Company will host an earnings call in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with today's release. The teleconference will begin at 10:00 a.m. eastern daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). time, July July: see month. 28, 2005. Dial-in information for the call is toll-free 1-877-407-9205. The event will be archived and available for digital replay through August 4, 2005. The replay access information is toll-free 1-877-660-6853; account number 286; conference ID number 161277. A webcast of the teleconference will be presented by Vcall and can be accessed at www.Vcall.com or from the Company's investor relations Investor relations The process by which the corporation communicates with its investors. page at www.emcinsurance.com. The archived webcast will be available for one year. A transcript A generic term for any kind of copy, particularly an official or certified representation of the record of what took place in a court during a trial or other legal proceeding. A transcript of record of the teleconference will also be available on the Company's website shortly after the completion of the teleconference. EMC Insurance Group Inc., the publicly-held insurance holding company of EMC Insurance Companies, owns subsidiaries with operations in property and 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. . EMC Insurance Companies is one of the largest property and casualty entities in Iowa and among the top 60 insurance entities nationwide. For more information, visit our website www.emcinsurance.com. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides issuers the opportunity to make cautionary statements regarding 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. . Accordingly, any forward-looking statement contained in this report is based on management's current beliefs, assumptions and expectations of the Company's future performance, taking into account all information currently available to management. These beliefs, assumptions and expectations can change as the result of many possible events or factors, not all of which are known to management. If a change occurs, the Company's business, financial condition, liquidity, results of operations, plans and objectives may vary materially from those expressed in the forward-looking statements. The risks and uncertainties that may affect the actual results of the Company include, but are not limited to the following: catastrophic events and the occurrence of significant severe weather conditions; the adequacy of loss and settlement expense reserves; state and federal legislation and regulations; changes in our industry, interest rates or the performance of financial markets and the general economy; rating agency actions and other risks and uncertainties inherent to the Company's business. When the Company uses the words "believe", "expect", "anticipate", "estimate", or similar expressions, it intends to identify forward-looking statements. You should not place undue reliance on these forward-looking statements. (1) The Company uses a non-GAAP financial measure called "operating income" that management believes is useful to investors because it illustrates the performance of our normal, ongoing operations, which is important in understanding and evaluating our financial condition and results of operations. While this measure is consistent with measures utilized by investors to evaluate performance, it is not a substitute for the U.S. GAAP financial measure of net income. Therefore, the Company has provided a reconciliation of this non-GAAP financial measure to the U.S. GAAP financial measure of net income in the Consolidated Statements of Income schedule contained in this release. Management also uses non-GAAP financial measures for goal setting, determining employee and senior management awards and compensation, and evaluating performance.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
Property and
Quarter Ended Casualty Parent
June 30, 2005 Insurance Reinsurance Company Consolidated
----------------------------------------------------------------------
Revenues:
---------
Premiums earned.. $81,177,327 $23,024,882 $- $104,202,209
Investment
income, net..... 7,488,089 2,665,174 47,274 10,200,537
Other income..... 147,574 - - 147,574
------------- ------------ ---------- -------------
88,812,990 25,690,056 47,274 114,550,320
------------- ------------ ---------- -------------
Losses and
expenses:
---------
Losses and
settlement
expenses........ 59,118,497 14,425,179 - 73,543,676
Dividends to
policyholders... 791,213 - - 791,213
Amortization of
deferred policy
acquisition
costs........... 18,480,589 5,240,661 - 23,721,250
Other
underwriting
expenses........ 8,522,304 1,669,381 - 10,191,685
Interest expense 193,125 84,975 - 278,100
Other expenses... 247,520 - 260,870 508,390
------------- ------------ ---------- -------------
87,353,248 21,420,196 260,870 109,034,314
------------- ------------ ---------- -------------
Operating
income (loss)
before income
taxes......... 1,459,742 4,269,860 (213,596) 5,516,006
------------- ------------ ---------- -------------
Realized investment
gains............. 811,547 21,690 - 833,237
------------- ------------ ---------- -------------
Income (loss)
before income
taxes......... 2,271,289 4,291,550 (213,596) 6,349,243
------------- ------------ ---------- -------------
Income tax expense
(benefit):
----------
Current.......... 661,538 1,220,664 (74,758) 1,807,444
Deferred......... (550,715) (68,144) - (618,859)
------------- ------------ ---------- -------------
110,823 1,152,520 (74,758) 1,188,585
------------- ------------ ---------- -------------
Net income
(loss)..... $2,160,466 $3,139,030 $(138,838) $5,160,658
============= ============ ========== =============
Average shares
outstanding....... 13,602,194
Per Share Data:
---------------
Net income per
share - basic
and diluted..... $0.16 $0.23 $(0.01) $0.38
(Increase)
decrease in
provision for
insured events
of prior years
(after tax)..... $(0.12) $0.02 $- $(0.10)
Catastrophe and
storm losses
(after tax)..... $(0.28) $(0.01) $- $(0.29)
Dividends per
share........... $0.15
Other Information
of Interest:
------------
Increase
(decrease) in
provision for
insured events
of prior years.. $2,490,160 $(439,415) $- $2,050,745
Catastrophe and
storm losses.... $5,776,404 $204,086 $- $5,980,490
GAAP Combined
Ratio:
------
Loss ratio..... 72.8% 62.7% - 70.6%
Expense ratio.. 34.3% 30.0% - 33.3%
------------- ------------ ---------- -------------
107.1% 92.7% - 103.9%
============= ============ ========== =============
Property and
Quarter Ended Casualty Parent
June 30, 2004 Insurance Reinsurance Company Consolidated
----------------------------------------------------------------------
Revenues:
---------
Premiums earned.. $62,209,091 $21,775,196 $- $83,984,287
Investment
income, net..... 4,554,410 2,297,481 13,772 6,865,663
Other income..... 265,112 - - 265,112
------------- ------------ ---------- -------------
67,028,613 24,072,677 13,772 91,115,062
------------- ------------ ---------- -------------
Losses and
expenses:
---------
Losses and
settlement
expenses........ 48,475,198 15,172,251 - 63,647,449
Dividends to
policyholders... 1,095,581 - - 1,095,581
Amortization of
deferred policy
acquisition
costs........... 13,354,823 4,545,473 - 17,900,296
Other
underwriting
expenses........ 7,344,098 (164,550) - 7,179,548
Interest expense 193,125 84,975 - 278,100
Other expenses... 228,066 - 191,151 419,217
------------- ------------ ---------- -------------
70,690,891 19,638,149 191,151 90,520,191
------------- ------------ ---------- -------------
Operating
income (loss)
before income
taxes......... (3,662,278) 4,434,528 (177,379) 594,871
------------- ------------ ---------- -------------
Realized investment
gains............. 2,452,066 729,042 - 3,181,108
------------- ------------ ---------- -------------
Income (loss)
before income
taxes......... (1,210,212) 5,163,570 (177,379) 3,775,979
------------- ------------ ---------- -------------
Income tax expense
(benefit):
----------
Current.......... (1,153,952) 1,717,095 (60,889) 502,254
Deferred......... 7,927 (198,944) (1,194) (192,211)
------------- ------------ ---------- -------------
(1,146,025) 1,518,151 (62,083) 310,043
------------- ------------ ---------- -------------
Net income
(loss)..... $(64,187) $3,645,419 $(115,296) $3,465,936
============= ============ ========== =============
Average shares
outstanding....... 11,558,120
Per Share Data:
---------------
Net income per
share - basic
and diluted..... $(0.01) $0.32 $(0.01) $0.30
(Increase)
decrease in
provision for
insured events
of prior years
(after tax)..... $(0.40) $0.06 $- $(0.34)
Catastrophe and
storm losses
(after tax)..... $(0.39) $(0.01) $- $(0.40)
Dividends per
share........... $0.15
Other Information
of Interest:
------------
Increase
(decrease) in
provision for
insured events
of prior years.. $7,114,003 $(1,117,152) $- $5,996,851
Catastrophe and
storm losses.... $7,031,774 $165,198 $- $7,196,972
GAAP Combined
Ratio:
------
Loss ratio..... 77.9% 69.7% - 75.8%
Expense ratio.. 35.1% 20.1% - 31.2%
------------- ------------ ---------- -------------
113.0% 89.8% - 107.0%
============= ============ ========== =============
Property and
Six Months Ended Casualty Parent
June 30, 2005 Insurance Reinsurance Company Consolidated
----------------------------------------------------------------------
Revenues:
---------
Premiums earned..$160,895,599 $44,600,680 $- $205,496,279
Investment
income, net..... 13,829,570 5,160,451 142,226 19,132,247
Other income..... 243,670 - - 243,670
------------- ------------ ---------- -------------
174,968,839 49,761,131 142,226 224,872,196
------------- ------------ ---------- -------------
Losses and
expenses:
---------
Losses and
settlement
expenses........ 106,249,408 30,137,276 - 136,386,684
Dividends to
policyholders... 2,342,072 - - 2,342,072
Amortization of
deferred policy
acquisition
costs........... 36,695,579 9,512,382 - 46,207,961
Other
underwriting
expenses........ 16,139,342 2,952,419 - 19,091,761
Interest expense 386,250 169,950 - 556,200
Other expenses... 418,849 - 495,671 914,520
------------- ------------ ---------- -------------
162,231,500 42,772,027 495,671 205,499,198
------------- ------------ ---------- -------------
Operating
income (loss)
before income
taxes......... 12,737,339 6,989,104 (353,445) 19,372,998
------------- ------------ ---------- -------------
Realized investment
gains (losses).... 1,678,661 (116,982) - 1,561,679
------------- ------------ ---------- -------------
Income (loss)
before income
taxes......... 14,416,000 6,872,122 (353,445) 20,934,677
------------- ------------ ---------- -------------
Income tax expense
(benefit):
----------
Current.......... 6,087,704 1,341,972 (143,839) 7,285,837
Deferred......... (2,406,737) 373,337 18,986 (2,014,414)
------------- ------------ ---------- -------------
3,680,967 1,715,309 (124,853) 5,271,423
------------- ------------ ---------- -------------
Net income
(loss)..... $10,735,033 $5,156,813 $(228,592) $15,663,254
============= ============ ========== =============
Average shares
outstanding....... 13,593,652
Per Share Data:
---------------
Net income per
share - basic
and diluted..... $0.79 $0.38 $(0.02) $1.15
(Increase)
decrease in
provision for
insured events
of prior years
(after tax)..... $0.19 $(0.01) $- $0.18
Catastrophe and
storm losses
(after tax)..... $(0.36) $(0.05) $- $(0.41)
Dividends per
share........... $0.30
Book value per
share........... $17.88
Effective tax rate 25.2%
Net income as a
percent of beg. SH
equity
(annualized)...... 13.7%
Other Information
of Interest:
------------
Increase
(decrease) in
provision for
insured events
of prior years.. $(4,102,933) $267,355 $- $(3,835,578)
Catastrophe and
storm losses.... $7,540,121 $1,065,671 $- $8,605,792
GAAP Combined
Ratio:
------
Loss ratio..... 66.0% 67.6% - 66.4%
Expense ratio.. 34.3% 27.9% - 32.9%
------------- ------------ ---------- -------------
100.3% 95.5% - 99.3%
============= ============ ========== =============
Property and
Six Months Ended Casualty Parent
June 30, 2004 Insurance Reinsurance Company Consolidated
----------------------------------------------------------------------
Revenues:
---------
Premiums earned..$123,569,319 $43,873,250 $- $167,442,569
Investment
income, net..... 9,520,781 4,592,964 25,895 14,139,640
Other income..... 341,591 - - 341,591
------------- ------------ ---------- -------------
133,431,691 48,466,214 25,895 181,923,800
------------- ------------ ---------- -------------
Losses and
expenses:
---------
Losses and
settlement
expenses........ 84,870,340 29,738,286 - 114,608,626
Dividends to
policyholders... 1,863,623 - - 1,863,623
Amortization of
deferred policy
acquisition
costs........... 27,194,581 9,125,242 - 36,319,823
Other
underwriting
expenses........ 13,661,035 1,613,834 - 15,274,869
Interest expense 386,250 169,950 - 556,200
Other expenses... 408,463 - 334,492 742,955
------------- ------------ ---------- -------------
128,384,292 40,647,312 334,492 169,366,096
------------- ------------ ---------- -------------
Operating
income (loss)
before income
taxes......... 5,047,399 7,818,902 (308,597) 12,557,704
------------- ------------ ---------- -------------
Realized investment
gains............. 2,742,033 839,602 - 3,581,635
------------- ------------ ---------- -------------
Income (loss)
before income
taxes......... 7,789,432 8,658,504 (308,597) 16,139,339
------------- ------------ ---------- -------------
Income tax expense
(benefit):
----------
Current.......... 2,121,530 2,504,246 (313,038) 4,312,738
Deferred......... (260,946) 67,486 205,030 11,570
------------- ------------ ---------- -------------
1,860,584 2,571,732 (108,008) 4,324,308
------------- ------------ ---------- -------------
Net income
(loss)..... $5,928,848 $6,086,772 $(200,589) $11,815,031
============= ============ ========== =============
Average shares
outstanding....... 11,540,381
Per Share Data:
---------------
Net income per
share - basic
and diluted..... $0.51 $0.53 $(0.02) $1.02
(Increase)
decrease in
provision for
insured events
of prior years
(after tax)..... $(0.20) $0.08 $- $(0.12)
Catastrophe and
storm losses
(after tax)..... $(0.44) $(0.02) $- $(0.46)
Dividends per
share........... $0.30
Book value per
share........... $15.81
Effective tax rate. 26.8%
Net income as a
percent of beg. SH
equity
(annualized)...... 13.1%
Other Information
of Interest:
------------
Increase
(decrease) in
provision for
insured events
of prior years.. $3,689,100 $(1,481,900) $- $2,207,200
Catastrophe and
storm losses.... $7,901,948 $309,741 $- $8,211,689
GAAP Combined
Ratio:
------
Loss ratio..... 68.7% 67.8% - 68.4%
Expense ratio.. 34.6% 24.5% - 32.0%
------------- ------------ ---------- -------------
103.3% 92.3% - 100.4%
============= ============ ========== =============
CONSOLIDATED BALANCE SHEETS - UNAUDITED
June 30, December 31,
2005 2004
-------------------------------------------------------- -------------
ASSETS
Investments:
Fixed maturities:
Securities held -to-maturity, at
amortized cost (fair value
$20,040,392 and $16,908,726)........ $19,226,288 $15,895,607
Securities available-for-sale, at
fair value (amortized cost
$652,649,086 and $541,401,950)...... 678,614,386 565,000,931
Fixed maturity securities on loan:
Securities held-to-maturity, at
amortized cost (fair value $788,432
and $13,684,880).................... 761,879 13,310,264
Securities available-for-sale, at
fair value (amortized cost
$53,351,569 and $54,389,046)........ 53,608,811 54,653,472
Equity securities available-for-sale,
at fair value (cost $61,183,374 and
$59,589,434).......................... 82,076,827 78,692,893
Other long-term investments, at cost... 5,706,817 5,550,093
Short-term investments, at cost........ 59,124,225 46,238,853
--------------- -------------
Total investments.............. 899,119,233 779,342,113
Balances resulting from related party
transactions with Employers Mutual:
Reinsurance receivables.............. 36,156,345 26,316,358
Prepaid reinsurance premiums......... 4,658,650 3,682,676
Deferred policy acquisition costs.... 34,134,673 27,940,583
Defined benefit retirement plan,
prepaid asset....................... 2,232,820 2,684,463
Other assets......................... 3,370,243 1,877,564
Indebtedness of related party........ 7,712,226 -
Cash..................................... 511,958 61,088
Accrued investment income................ 9,580,070 8,726,292
Accounts receivable (net of allowance for
uncollectible accounts of $0 and $0).... 213,304 216,836
Income taxes recoverable................. 2,526,626 3,399,485
Deferred income taxes.................... 10,066,413 9,504,193
Goodwill, at cost less accumulated
amortization of $2,616,234 and
$2,616,234.............................. 941,586 941,586
Securities lending collateral............ 55,560,180 70,122,695
--------------- -------------
Total assets........................$1,066,784,327 $934,815,932
--------------- -------------
LIABILITIES
Balances resulting from related party
transactions with Employers Mutual:
Losses and settlement expenses....... $538,186,796 $429,677,302
Unearned premiums.................... 160,647,881 131,589,365
Other policyholders' funds........... 3,098,432 2,825,809
Surplus notes payable................ 36,000,000 36,000,000
Indebtedness to related party........ - 6,058,848
Employee retirement plans............ 12,962,321 9,764,406
Other liabilities.................... 16,999,267 20,304,475
Securities lending obligation............ 55,560,180 70,122,695
--------------- -------------
Total liabilities................... 823,454,877 706,342,900
--------------- -------------
STOCKHOLDERS' EQUITY
Common stock, $1 par value, authorized
20,000,000 shares; issued and
outstanding 13,605,671 shares in 2005
and 13,568,945 shares in 2004........... 13,605,671 13,568,945
Additional paid-in capital............... 104,142,392 103,467,293
Accumulated other comprehensive income... 30,625,397 27,928,463
Retained earnings........................ 94,955,990 83,508,331
--------------- -------------
Total stockholders' equity.......... 243,329,450 228,473,032
--------------- -------------
Total liabilities and stockholders'
equity..................................$1,066,784,327 $934,815,932
--------------- -------------
The Company had total cash and invested assets with a carrying value
of $899.6 million and $779.4 million as of June 30, 2005 and December
31,2004, respectively. The following table summarizes the Company's
cash and invested assets as of the dates indicated:
June 30, 2005
------------------------------------------
Percent of
Amortized Fair Total at Carrying
($ in thousands) Cost Value Fair Value Value
---------- ---------- ---------- ---------
Fixed maturities held-to-
maturity................... $19,988 $20,829 2.3% $19,988
Fixed maturities available-
for-sale................... 706,001 732,223 81.3% 732,223
Equity securities available-
for-sale................... 61,183 82,077 9.1% 82,077
Cash........................ 512 512 0.1% 512
Short-term investments...... 59,124 59,124 6.6% 59,124
Other long-term investments 5,707 5,707 0.6% 5,707
---------- ---------- ---------- ---------
$852,515 $900,472 100.0% $899,631
========== ========== ========== =========
December 31, 2004
------------------------------------------
Percent of
Amortized Fair Total at Carrying
($ in thousands) Cost Value Fair Value Value
---------- ---------- ---------- ---------
Fixed maturities held-to-
maturity................... $29,206 $30,594 3.9% $29,206
Fixed maturities available-
for-sale................... 595,791 619,654 79.4% 619,654
Equity securities available-
for-sale................... 59,589 78,693 10.1% 78,693
Cash........................ 61 61 - 61
Short-term investments...... 46,239 46,239 5.9% 46,239
Other long-term investments 5,550 5,550 0.7% 5,550
---------- ---------- ---------- ---------
$736,436 $780,791 100.0% $779,403
========== ========== ========== =========
The amortized cost and estimated fair values of fixed maturity and
equity securities at June 30, 2005 were as follows:
Held-to-Maturity
------------------------------------------
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
($ in thousands) Cost Gains Losses Value
---------- ---------- ---------- ---------
U.S. treasury securities and
obligations of U.S.
government corporations and
agencies................... $19,025 $756 $- $19,781
Mortgage-backed securities.. 963 85 - 1,048
---------- ---------- ---------- ---------
Total securities held-
to-maturity............ $19,988 $841 $- $20,829
========== ========== ========== =========
Available-for-Sale
------------------------------------------
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
($ in thousands) Cost Gains Losses Value
---------- ---------- ---------- ---------
U.S. treasury securities and
obligations of U.S.
government corporations and
agencies................... $292,896 $855 $137 $293,614
Obligations of states and
political subdivisions..... 251,976 14,009 5 265,980
Mortgage-backed securities.. 10,409 645 - 11,054
Public utilities............ 9,198 1,211 - 10,409
Debt securities issued by
foreign governments........ 7,112 260 - 7,372
Corporate securities........ 134,410 9,858 474 143,794
---------- ---------- ---------- ---------
Total fixed maturity
securities............. 706,001 26,838 616 732,223
---------- ---------- ---------- ---------
Equity securities
Common stocks............. 60,683 22,003 1,124 81,562
Non-redeemable preferred
stocks................... 500 15 - 515
---------- ---------- ---------- ---------
Total equity securities 61,183 22,018 1,124 82,077
---------- ---------- ---------- ---------
Total securities
available-for-sale..... $767,184 $48,856 $1,740 $814,300
========== ========== ========== =========
NET WRITTEN PREMIUMS
Three months ended Six months ended
June 30, 2005 June 30, 2005
------------------- -----------------------
Percent of Percent of
Increase/ Increase/
Percent (Decrease) (Decrease)
of Net in Net Percent of in Net
Written Written Net Written Written
Premiums Premiums Premiums(a) Premiums(a)
-------- ---------- ----------- -----------
Property and Casualty
Insurance
Commercial Lines:
-----------------
Automobile........... 18.4% -3.1% 18.4% -2.9%
Liability............ 17.0% 1.8% 17.0% 4.3%
Property............. 15.1% 2.8% 14.5% 0.7%
Workers' Compensation 13.9% -2.6% 14.0% -2.9%
Other................ 1.9% 15.1% 1.8% 21.3%
-------- -----------
Total............. 66.3% 0.0% 65.7% 0.2%
Personal Lines:
---------------
Automobile........... 7.0% -11.1% 7.4% -12.3%
Property............. 6.0% -3.2% 5.5% -4.2%
Liability............ 0.2% 2.3% 0.2% 4.5%
-------- -----------
Total............. 13.2% -7.5% 13.1% -8.9%
Reinsurance................ 20.5% -1.1% 21.2% -7.5%
-------- -----------
Total............. 100.0% 100.0%
======== ===========
(a) Excludes January 1, 2005 portfolio adjustment of $29,630,612
related to the change in the Company's aggregate participation in the
pooling arrangement.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion