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 COLUMBUS, Ohio, Nov. 5 /PRNewswire/ -- Bancinsurance Corporation (NASDAQ: BCIS) today announced total revenue of $15,306,171 for the nine months ended Sept. 30, 1993, compared to $7,902,096 for the same period last year, an increase of approximately 94 percent. The company's lines of business recorded substantial growth. Net premiums earned increased over 99 percent for the first nine months of 1993 to $14,100,848, versus $7,062,719 in 1992. Net investment income, benefiting from growth in cash and invested assets, totaled $1,112,813 for the nine months ended Sept. 30, 1993, compared to $703,397 a year ago.
 Net income rose more than 9 percent to $1,797,244 for the first nine months of 1993, compared to $1,641,411 last year. Net income per share was $0.30 for the nine months ended Sept. 30, 1993, versus $0.28 for the same period last year. Shareholders' equity totaled $9,464,629 on Sept. 30, 1993, an increase of 25 percent since year-end 1992.
 The company's statutory combined ratio was 79.1 percent on Sept. 30, 1993, and remains well below industry averages. The increase versus a year ago can be attributed to certain general and administrative expenses, including policy fees, legal expenses and amortization of deferred policy acquisition costs plus higher loss and loss adjustment expenses due to business growth exceeding marginal increases in premium rates.
 Total revenue for the three months ended Sept. 30, 1993, rose 76 percent to $5,806,248 from $3,304,623 for the same period a year ago. Net income was $833,765, or $0.14 per share, for the third quarter of 1993, versus $766,633, or $0.13 per share for the same quarter in 1992.
 Three significant items have influenced 1993 year-to-date results:
 First, the company withdrew a registration in April 1993 to issue additional common stock. Thus far in 1993, the company has charged $415,390 to operations for those registration expenses. The company anticipates no additional charge will be taken concerning this matter.
 Second, the company continues to implement a focused growth strategy which includes entry into complementary insurance business. Start-up costs totaling $169,343 for BCIS Services, Inc. were expensed during the third quarter of 1993. Positive contributions are anticipated from this subsidiary in 1994 and beyond.
 Third, in July 1992, Ohio Indemnity Company, a wholly-owned subsidiary of Bancinsurance, discontinued a product it had sold through American Autoplan, an automobile repair company, since 1990 in California and Texas. In March 1993, the company became aware that Pacific Group Managers, Inc. an affiliate of American Autoplan, had sold automobile physical damage and/or liability insurance using Ohio Indemnity's name without the authority, knowledge or consent of the company. This information was promptly reported to the California Department of Insurance. In April 1993, Ohio Indemnity became aware that American Autoplan had ceased honoring its obligations to its customers. The company believes it is not liable to the purchasers of these products and intends to vigorously contest any claims brought against Ohio Indemnity by the purchasers of such products. On Sept. 17, 1993, the California Insurance Commissioner filed an Accusation against Ohio Indemnity which includes allegations of false representation and fraudulent conduct of business in connection with the issuance by American Autoplan and Pacific Group Managers, Inc. of certain alleged insurance products. The Commissioner claimed in the Accusation that these issues constitute grounds to suspend Ohio Indemnity's Certificate of Authority to conduct business in California for up to one year. The company is vigorously contesting the Accusation and is currently in discussions with the Commissioner to resolve this matter.
 Management, in accordance with its long-standing policy of conservative reserving practices, has significantly increased reserves in 1993 and believes that the amounts are adequate for potential losses and legal proceedings.
 Bancinsurance Corporation is a specialty property insurance holding company primarily engaged, through its property/casualty insurance subsidiary, Ohio Indemnity, in underwriting "Ultimate Loss Insurance" and Automobile Physical Damage Insurance. The company also provides a surety bond program for a national administrative firm that performs certain services for non-profit entities.
 Nine Months Ended Nine Months Ended
 Sept. 30, 1993 Sept. 30, 1992
 Total Revenues $ 15,306,171 $ 7,902,096
 Net Income $ 1,797,244 $ 1,641,411
 Net Income Per Share $ .30 $ .28
 Weighted Average Common
 Shares and Equivalents
 Outstanding 6,072,978 5,929,928
 Three Months Ended Three Months Ended
 Sept. 30, 1993 Sept. 30, 1992
 Total Revenues $ 5,806,248 $ 3,304,623
 Net Income $ 833,765 $ 766,633
 Net Income Per Share $ .14 $ .13
 Weighted Average Common
 Shares and Equivalents
 Outstanding 6,085,985 5,956,375
 Sept. 30, 1993 Dec. 31, 1992
 Total Assets $ 40,568,136 $ 28,014,631
 Shareholders' Equity $ 9,464,629 $ 7,581,232
 -0- 11/5/93
 /CONTACT: Si Sokol, president, of Bancinsurance Corporation, 614-228-2800/

CO: Bancinsurance Corporation ST: Ohio IN: INS SU: ERN

AR-BM -- CL011 -- 1308 11/05/93 15:09 EST
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Publication:PR Newswire
Date:Nov 5, 1993

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