FPIC Insurance Group, Inc. Reports Significant Increase in Operating Earnings.JACKSONVILLE Jacksonville. 1 City (1990 pop. 29,101), Pulaski co., central Ark., inc. 1941. The city has varied industries, including printing and publishing and the manufacture of electronic equipment, ordnance, and plastic and metal products. , Fla.--(BUSINESS WIRE)--May 11, 1999-- FPIC FPIC First Professionals Insurance Company (Jacksonville, FL) FPIC Field Programmable Interconnect FPIC Federal Partnership for Interoperable Communications FPIC Field Programmable Interconnect Chip Insurance Group, Inc. (Nasdaq:FPIC) today reported 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 per share of $0.68 for the first quarter ended March 31, 1999, up 36.0% from the $0.50 per share reported for the first quarter of 1998. Net income for the first quarter 1999 increased 50.0%, from $4.8 million for the first quarter of 1998 to $7.2 million. Total revenues for the first quarter 1999 were $40.0 million, an increase of 56.9% from the $25.5 million reported for the first quarter of 1998. This revenue growth included a 54.5% increase in net premiums earned and a 2.6% increase in net investment income. The revenue growth also included a 147.9% increase in fee-based income, primarily due to an acquisition. Total expenses for the first quarter of 1999 increased 62.2% from the first quarter 1998, from $18.8 million for the first quarter 1998 to $30.5 million. For the quarter, loss and loss adjustment expenses increased 28.3%, from $14.5 million for the first quarter of 1998 to $18.6 million, primarily due to the growth in premiums. Other 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. expenses for the quarter increased from $1.8 million for the first quarter of 1998 to $4.0 million. Claims administration and management expenses for the quarter increased from $2.3 million in the first quarter 1998 to $5.9 million, primarily due to an acquisition. William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack R. Russell Russell, English noble family. It first appeared prominently in the reign of Henry VIII when John Russell, 1st earl of Bedford, 1486?–1555, rose to military and diplomatic importance. , FPIC's 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. , stated "our results for the first quarter, in which we experienced significant increases in operating earnings and revenues over the first quarter of 1998, are particularly gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. in light of the continuing highly competitive market environment. In addition, during the first quarter we closed our acquisitions of New York-based Administrators For The Professions, Inc. and The Tenere Group, Inc. in Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. . We expect
these acquisitions to positively affect our 1999 operating results.
Throughout this year we will continue to focus on profitable segments of
our businesses and to seek strategic acquisition opportunities."As of March 31, 1999 there were 9,842,197 shares of FPIC common stock outstanding. Book value was $16.77 per share, excluding the effects of unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. on investments (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 115). FPIC Insurance Group, Inc, through its subsidiary companies, is a leading provider of professional liability and health insurance for physicians, dentists Dentists can refer to one of the following:
Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and Physicians Insurance Company, Inc., is rated A- (Excellent) by A.M. Best. Copies of the Company's Form 10-Q Form 10-Q See 10-Q. Report for the first quarter 1999 will be made available upon request after the report is filed with the Securities and Exchange Commission. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under 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 This news release contains historical information, as well as 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. , that are based on FPIC Insurance Group, Inc.'s estimates and expectations of future events. Associated with this are certain risks and uncertainties that could cause actual results to materially differ from those reflected in the forward-looking statements. FPIC's financial position and results of operations are subject to fluctuations due to a variety of factors. Unexpected changes in loss trends in any period could have a materially adverse effect on the company. Reevaluations of loss and loss adjustment expense (LAE) reserves could result in an increase or decrease in reserves and a corresponding adjustment to earnings. (LAE reserves are costs associated with the settlement of claims.) In light of the many uncertainties associated with the forward-looking statement information, historical results of operations are not necessarily indicative indicative: see mood. of future earnings nor should such information be regarded as a representation by FPIC, or any person associated with FPIC, that FPIC's objectives will be met. -0-
FPIC Insurance Group, Inc.
Consolidated Statements of Income
(Unaudited)
3 months ended 3 months ended
3/31/99 3/31/98
Gross premiums written and assumed $ 37,521,923 $ 29,851,492
Net premiums written and assumed $ 32,254,981 $ 26,585,060
Revenues
Net premiums earned $ 27,583,589 $ 17,855,299
Net investment income 4,451,748 4,339,754
Net realized investment gains (losses) 304,058 (14,722)
Claims administration and management
fees 6,234,315 2,589,999
Commission income 746,753 226,104
Other income 687,914 490,246
Total revenues 40,008,377 25,486,680
Expenses
Net losses and loss adjustment expenses 18,649,122 14,517,950
Other underwriting expenses 4,002,711 1,751,856
Claims administration and management
expenses 5,918,670 2,291,740
Interest expense 843,041 33,151
Other expenses 1,089,277 188,566
Total expenses 30,502,821 18,783,263
Income before income taxes 9,505,556 6,703,417
Income taxes 2,271,122 1,918,309
Net income $ 7,234,434 $ 4,785,108
Basic earnings per common share $ 0.74 $ 0.52
Diluted earnings per common share $ 0.70 $ 0.50
Weighted average shares outstanding 10,398,147 9,646,467
Operating income per share $ 0.68 $ 0.50
Selected Financial Data: March 31 December 31
1999 1998
Cash and Investments, at market $361,923,055 $352,103,167
Cash and Investments (excluding
SFAS 115) 354,815,646 343,409,541
Intangible Assets 76,584,909 16,586,261
Total Assets 584,196,478 479,143,920
Total Assets (excluding SFAS 115) 577,089,069 470,450,024
Reserves for Losses and LAE - Statutory 224,119,998 200,766,583
Reserves for Losses and LAE - GAAP 278,756,095 242,377,463
Net Paid Losses and LAE 17,977,760 59,528,023
Total Claims Closed with Payment 57 225
Total Debt 58,177,797 27,165,000
Total Liabilities 414,495,257 328,176,904
Total Shareholders' Equity 169,701,221 150,967,016
Net Unrealized Gain included in
Shareholders' Equity 4,619,816 5,658,014
Book Value per Share (excluding SFAS 115) $ 16.77 $ 15.27
Common Shares Outstanding 9,842,197 9,518,679
Statutory Surplus (all companies) 133,469,366 117,277,880
For all of your investor information needs please visit our company Web Site: http//www.fpic.com. Electronic distribution of materials is now available. |
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