INSURER SIGNS OFF ON GAINS IN 1997; $5.5 MILLION PROFIT AIDED BY OVERHAUL.Byline: Gregory J. Wilcox Daily News Staff Writer Putting employees closer to their work paid off for Amwest Insurance Group Inc. during the 1997 fiscal year. The company Tuesday reported net income of $5.5 million, equal to $1.60 a 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, for the year ended Dec. 31, on gross premiums of $108.1 million. This compares with a net loss of $2.7 million, or 80 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , on gross premiums of $97.2 million in fiscal 1996. The losses during 1996 were concentrated in the company's contract surety An individual who undertakes an obligation to pay a sum of money or to perform some duty or promise for another in the event that person fails to act. surety n. business, which guarantees that development projects are completed by contractors. The unit recorded five losses of $1 million or more during that period. Steven R. Kay, Amwest's vice president and chief financial officer, attributed the 1997 turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. to a decentralization de·cen·tral·ize v. de·cen·tral·ized, de·cen·tral·iz·ing, de·cen·tral·iz·es v.tr. 1. To distribute the administrative functions or powers of (a central authority) among several local authorities. of the regional operations that put underwriters closer to the projects they were working on. The 1996 loss was the first in the company's 25-year history. ``It was a very poor year for us,'' Kay said. ``So this was a dramatic turnaround for us. It's nice to return to profitability.'' For the fourth quarter, Amwest reported net income of $1.7 million, 49 cents per share vs. a loss of $2.7 million, or 80 cents in the like quarter a year ago. During the quarter, 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. increased 20 percent to $28.2 million. Shares of Amwest closed Tuesday at 16-1/4, up -3/4. Amwest is a Calabasas-based insurance holding company that underwrites specialty property and casualty insurance through Amwest, Condor and Far West insurance companies. |
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