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AmCOMP Reports Fourth Quarter and Fiscal Year 2005 Results.

NORTH PALM BEACH, Fla. -- AmCOMP Incorporated (Nasdaq:AMCP) today announced results for the fourth quarter and year ended December 31, 2005.

Fred R. Lowe, AmCOMP's Chairman, President and Chief Executive Officer, said: "2005 was an exceptional year for AmCOMP both financially and organizationally. Financially, we achieved record results. Our revenues grew by more than 41%, net income more than tripled, our invested assets increased over 27% year-over-year and our return on average equity was 25.8%. These results are a reflection of the hard work, dedication and commitment of our employees and independent agents to providing sustained quality service to our customers.

"Organizationally, we set in motion a plan which enabled us to accomplish a major, strategic initiative in early 2006, as we completed our initial public offering, raising the capital required to continue to expand our business and bring our products and services to more agents and companies throughout our operating regions," he concluded.

For the year ended December 31, 2005, net income was $16.8 million, or $1.76 per diluted share, compared to net income of $5.0 million, or $0.53 per diluted share, for the year ended December 31, 2004. Weighted average diluted shares outstanding were 9,562,000 in 2005 compared to 9,564,000 in 2004. Total annual revenue increased 41.7% to $267.3 million in 2005 versus $188.6 million in the prior year.

The net combined ratio for the year ended December 31, 2005, was 92.9% compared to 98.2% for the same period in 2004. Loss and loss adjustment expenses for the year ended December 31, 2005, were $143.7 million versus $119.1 million in the same period in 2004. Total underwriting expenses for the year were $86.0 million in 2005 compared to $51.8 million in the prior year.

For the fourth quarter of 2005, net income was $4.7 million, or $0.49 per diluted share, compared to net income of $5.1 million, or $0.53 per diluted share, for the same period in 2004. Weighted average diluted shares outstanding for the fourth quarter of 2005 were 9,562,000 compared to 9,564,000 for the fourth quarter of 2004. Total revenue for the fourth quarter of 2005 increased 26.1% to $69.0 million versus $54.7 million in the year-earlier period.

The net combined ratio for the fourth quarter was 93.4% compared to 85.1% for the same period in 2004. Loss and loss adjustment expenses for the fourth quarter 2005 were $35.2 million versus $26.9 million in the same period in 2004. Total underwriting expenses for the fourth quarter were $24.3 million compared to $14.7 million in the prior year period.

Mr. Lowe continued: "Net income for fourth quarter 2005 was slightly less than 2004's largely due to a bonus accrual in 2005's fourth quarter. Direct premiums written increased 10.2% from $56.2M in the fourth quarter of 2004 to $61.9M in 2005's final quarter.

"Year-over-year we improved our combined ratio in 2005 and, by completing our IPO, we have the necessary capital required for our insurance subsidiaries' continued growth. We plan to continue our business strategy of providing unparalleled service to our workers' compensation policyholders with a focus on loss prevention services and a proactive claims management system, which resolves claims quickly and appropriately. This has been the hallmark of our business for the past 23 years, and we will continue to employ these customer service programs to drive our business results," Mr. Lowe concluded.

On February 10, 2006, AmCOMP completed a public offering of common stock in which the Company sold 6,000,000 primary shares, raising net proceeds of approximately $48.0 million. Pro forma book value, including the net proceeds from the IPO, is $7.71 per share. On February 15, 2006, AmCOMP contributed approximately $43.0 million of the net proceeds from the offering to its insurance company subsidiaries to expand its business in its core markets.

About AmCOMP

With roots dating back to 1982, AmCOMP Incorporated is an insurance holding company whose wholly owned subsidiaries, AmCOMP Preferred and AmCOMP Assurance, are mono-line workers' compensation insurers with products that focus on value-added services to policyholders. Currently marketing insurance policies in 11 core states and targeting small to mid-sized employers in a variety of industries, AmCOMP distributes its products through independent agencies.

Conference Call

The Company will host a conference call on Wednesday, March 29, 2006, at 8:00 AM ET, featuring remarks by Fred R. Lowe, President and CEO; Debra Cerre-Ruedisili, Executive Vice President and COO; and Kumar Gursahaney, Senior Vice President and CFO. The conference call is available via webcast on the Company's website and can be accessed by visiting http://ir.amcomp.com/ . The dial-in number for the conference call is 913-981-5523. Please call at least five minutes before the scheduled start time.

There will be an audio reply of the call, which will be available starting 11:00 AM ET, March 29th through 11:59 PM ET April 1, 2006, and may be accessed by calling 719-457-0820 or 888-203-1112 and using the pass code 1947171. The conference call webcast will be available on the Company's website for 60 days.

Forward-looking Statements

Statements made in this press release, including those about the Company's financial condition and results of operations and about its future plans and objectives, which are not based on historical facts, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe," "expect," "plans," "intend," "project," "estimate," "may," "should," "will," "continue," "potential," "forecast" and "anticipate" and similar expressions identify forward-looking statements. Any such statements involve known and unknown risks, uncertainties and other factors, including those set forth under the heading "Risk Factors" in the Company's filings with the Securities and Exchange Commission, including AmCOMP's Final Prospectus dated February 9, 2006. Such factors may cause AmCOMP's actual performance, condition and achievements to be materially different than any future performance, condition and achievement set forth in this press release. All subsequent written and oral forward-looking statements attributable to us or individuals acting on our behalf are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Set forth in the tables below are summary results of operations for the three month and twelve month periods ended December 31, 2005 and 2004, as well as selected balance sheet data as of December 31, 2005 and 2004. The following information is preliminary and unaudited and is subject to change until final results are publicly distributed. The Company currently expects to file its audited consolidated financial statements with the Securities and Exchange Commission as part of its annual report on Form 10-K in a timely fashion on or before March 31, 2006.
AmCOMP Incorporated and Subsidiaries
 Consolidated Statements of Income
 (in thousands, except per share amounts and ratios)
 (unaudited)

 Three Months Ended Year Ended
 December 31, December 31,
 ------------------ -------------------
 2005 2004 2005 2004
 --------- -------- --------- ---------

Statement of Operations Data:
Revenues:
Net premiums earned $65,827 $52,615 $256,603 $181,186
Net investment income 3,161 2,014 10,798 6,077
Net realized investment
 gain (loss) (61) (69) (385) 982
Other income 36 141 285 332
 Total revenue $68,963 $54,701 $267,301 $188,577
Expenses:
Losses and loss adjustment
 expenses $35,174 $26,892 $143,663 $119,121
Underwriting and acquisition
 expenses 24,273 14,747 85,955 51,779
Dividends to policyholders 2,024 3,135 8,612 6,983
Interest expense 805 579 2,960 1,389
 Total expenses $62,276 $45,353 $241,190 $179,272
Income before income taxes 6,687 9,348 26,111 9,305
Income tax expense 2,028 4,295 9,326 4,275
 Net income $4,659 $5,053 $16,785 $5,030

Operating Data:
Direct premiums written $61,935 $56,194 $270,331 $260,173
Gross premiums written 63,024 58,620 277,095 270,981
Net premiums written 60,215 54,699 267,652 217,472
Per Share Data:
Earnings (loss) per share
 Basic $0.87 $0.94 $3.13 $0.94
 Diluted 0.49 0.53 1.76 0.53
Weighted average common shares
 outstanding
 Basic 5,367 5,368 5,367 5,368
 Diluted 9,562 9,564 9,562 9,564
Selected Insurance Ratios:
Net loss ratio(1) 53.4% 51.1% 56.0% 65.7%
Underwriting and acquisition
 expense ratio(2) 36.9% 28.0% 33.5% 28.6%
Net combined ratio, excluding
 policyholder dividends(3) 90.3% 79.1% 89.5% 94.3%
Dividend ratio(4) 3.1% 6.0% 3.4% 3.9%
Net combined ratio, including
 policyholder dividends(5) 93.4% 85.1% 92.9% 98.2%


(1) Losses and LAE divided by net premiums earned, after the effects
of reinsurance.

(2) Underwriting and acquisition expenses divided by net premiums
earned.

(3) Sum of ratios computed in footnotes 1 and 2.

(4) Dividends to policyholders divided by net premiums earned.

(5) Sum of ratios computed in footnotes 1, 2, and 4.


 AmCOMP Incorporated and Subsidiaries
 Consolidated Balance Sheets
 (in thousands)
 (unaudited)


 December 31st
 2005 2004

Assets
Cash and investments $332,196 $262,028
Premiums receivable--net 104,522 101,638
Reinsurance recoverables 83,880 115,870
Deferred policy acquisition costs 19,413 14,695
Deferred income taxes 20,871 17,646
Other assets 22,445 31,905
Total assets $583,327 $543,782

Liabilities and stockholder's equity
Unpaid losses and loss adjustment expenses $309,857 $297,698
Unearned and advance premiums 115,574 114,235
Long term debt 40,036 41,821
Other liabilities 45,879 31,693
Total liabilities 511,346 485,447
Preferred stock 23,098 23,098
Total stockholders' equity 71,981 58,335
Total liabilities and stockholder's equity $583,327 $543,782


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