Meridian Insurance Group Announces Financial Results for 1997 Fourth Quarter and Year End.INDIANAPOLIS, Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. .--(BUSINESS WIRE)--Feb. 26, 1998--Meridian Insurance Group, Inc., (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :MIGI) today reported financial results for its fourth quarter and year ended December 31, 1997. Net income for 1997 improved 19.3 percent to $6,921,000, or $1.04 basic earnings per share, from $5,800,000, or $0.86 basic earnings per share, for 1996. Property damage claims resulting from severe weather, while still significant in 1997, were not as high as last year's unprecedented levels. The Company's statutory combined ratio was 107.1 percent in 1997, compared to last year's 108.0 percent. Realized investment gains for 1997 were $4,477,000, or $0.44 per share after tax, compared with $3,793,000, or $0.37 per share after tax, for 1996. Total revenues for the year advanced 16.0 percent to $216,478,000 from $186,569,000 last year. The Company's 1996 year-end financial results include five months of results for Citizens Security Group, Inc., a property and casualty insurance holding company acquired by Meridian Meridian (mərĭd`ēən), city (1990 pop. 41,036), seat of Lauderdale co., E Miss., near the Ala. line; settled 1831, inc. 1860. on July 31, 1996. For the 1997 fourth quarter, net income was $1,790,000, or $0.27 basic earnings per share, compared with $2,697,000, or $0.40 basic earnings per share, for the same quarter last year. The reduction in net income was largely due to an increase in the severity of certain claims incurred during the quarter and additions to claim reserve estimates for the Citizens Security companies. Net realized investment gains for the 1997 fourth quarter were $0.17 per share, up from the $0.13 recorded for the 1996 fourth quarter. Total revenues for the quarter increased 2.9 percent to $54,451,000 from $52,917,000 for the prior-year period. "While our performance in 1997 was an improvement from last year's, we are far from satisfied with the results," stated Norma Oman, Meridian's President and Chief Executive Officer. "We continue to move forward with initiatives designed to strengthen our competitive position and generate long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. profitable growth. We have taken rate increases and 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. actions to improve our loss and expense ratios. In January 1998, we introduced a non-standard auto product through our mutual company affiliate. We also continue to pursue opportunities for geographic expansion, product enhancement, and distribution efficiencies." At December 31, 1997, Meridian had total investments of $308,427,000, which are carried at fair market value. The Company reported total assets of $413,586,000 and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $131,894,000. At year end, the Company's book value per share was $19.90, up from $18.02 at December 31, 1996. Meridian Insurance Group, Inc., provides automobile, homeowners, farmowners, other personal lines coverage, and commercial insurance. The insurance coverage is written in Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , Iowa, Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. , Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). , Minnesota, Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. , North Dakota North Dakota, state in the N central United States. It is bordered by Minnesota, across the Red River of the North (E), South Dakota (S), Montana (W), and the Canadian provinces of Saskatchewan and Manitoba (N). , Ohio, Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , South
Dakota South Dakota (dəkō`tə), state in the N central United States. It is bordered by North Dakota (N), Minnesota and Iowa (E), Nebraska (S), and Wyoming and Montana (W). , Tennessee Tennessee, state, United StatesTennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. , and Wisconsin. -0-
MERIDIAN INSURANCE GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the three and nine months ended December 31, 1997 and 1996
(Unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
__________________ ____________________
1997 1996 1997 1996
_______ _______ _______ _______
(All figures in thousands except
per-share data)
Premiums earned $48,457 $47,711 $194,587 $167,305
Net investment income 4,202 3,856 16,372 14,908
Realized investment gains 1,717 1,311 4,477 3,794
Other income 75 39 1,042 562
_______ _______ ________ ________
Total revenues $54,451 $52,917 $216,478 $186,569
_______ _______ ________ ________
Loss and loss adjustment
expenses $37,697 $35,334 $149,219 $130,101
General operating expenses 3,774 3,609 16,505 13,767
Amortization expenses 11,065 10,381 42,894 36,443
Interest expense 183 188 732 308
_______ _______ ________ ________
Total expenses $52,719 $49,512 $209,350 $180,619
_______ _______ ________ ________
_______ _______ ________ ________
Income before income taxes 1,732 3,405 7,128 5,950
Income taxes (benefit)
Current 282 142 1,067 702
Deferred (340) 566 (860) (552)
_______ _______ ________ ________
Total income taxes (benefit) (58) 708 207 150
_______ _______ ________ ________
Net income $ 1,790 $ 2,697 $ 6,921 $ 5,800
_______ _______ ________ ________
_______ _______ ________ ________
Weighted average shares
outstanding:
Basic 6,627 6,779 6,684 6,779
_______ _______ ________ ________
Diluted 6,698 6,812 6,729 6,807
_______ _______ ________ ________
Per share results:
Basic earnings per share $ 0.27 $ 0.40 $ 1.04 $ 0.86
_______ _______ ________ ________
_______ _______ ________ ________
Diluted earnings per share $ 0.27 $ 0.39 $ 1.03 $ 0.85
_______ _______ ________ ________
_______ _______ ________ ________
CONTACT: Meridian Insurance Group, Inc. Steven Hazelbaker, 317/931-7269 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion