BANCINSURANCE CORPORATION REPROTS SIGNIFICANTLY
HIGHER THIRD QUARTER EARNINGS
COLUMBUS, Ohio, Nov. 5 /PRNewswire/ -- Bancinsurance Corporation (NASDAQ: BCIS) today announced net income for the nine months eneded Sept. 30, 1991 increased 78 percent to $850,403, compared to $479,027 for the same period in 1990. These results represent year-to-date earnings per share of 15 cents versus eight cents a year ago. The significant increase in net income is based on improved performance throughout the business. Thus far in 1991, premiums earned have grown 67 percent, investment income has increased 58 percent, and claims are lower as a percent of premiums earned. Shareholders' equity was $5,115,297 on Sept. 30 1991, an increase of 20 percent since Dec. 31, 1990.
For the three months ended Sept. 30, 1991, net income was $390,949 versus $141,272 last year, an increase of 177 percent. Earnings per share were seven cents compared to two cents for the same period in 1990. Net premiums earned were $2,053,541 for the third quarter in 1991 versus $1,264,526 last year. Investment income, based primarily on fixed income and short-term investments, rose 55 percent. The quality of the investment portfolio remains strong and does not include "junk bonds" nor real estate investments.
Solid results for the most recent quarter and year-to-date in 1991 can be attributed to severl initiatives implemented earlier this year. The company has been selectively expanding its insurance product offerings, including the Surety Bond Program. This includes increased market penetration of exisiting and new geographic markets. The continued growth in premium volume has resulted in higher levels of investments. A significant portion of these funds have been used to purchase high grade municipal securities, which also beneifts current and future income tax expense.
Bancinsurance Corporation, headquartered in Columbus, Ohio, is a specialty insurance holding company primarily engaged, through its casualty insurance subsidiary, Ohio Indemnity Company, underwriting "Ultimate Loss Insurance." This insurance protects banks and other lenders against the risk arising from theft or damage to certain loan collateral where the borrower has failed to secure and maintain adequate insurance coverage. The company also provides a surety bond program for a national firm that offers certain services to governmental and non-profit entities.
Three Months Ended Three Months Ended
Sept. 30, 1991 Sept. 30, 1990
Total Revenues $ 2,203,312 $ 1,375,993
Net income $ 390,949 $ 141,272
Earnings per share $ .07 $ .02
Nine Months Ended Nine Months Ended
Sept. 30, 1991 Sept. 30, 1990
Total Revenues $ 5,726,969 $ 3,462,575
Net Income $ 850,403 $ 479,027
Earnings Per Share $ .15 $ .08
Sept. 30, 1991 Dec. 31, 1990
Total assets $14,835,426 $ 11,581,617
Shareholders' equity $ 5,115,297 $ 4,247,832
/CONTACT: Si Sokol, president of Bancinsurance Corporation, 614-228-2800/
(BCIS) CO: Bancinsurance Corporation ST: Ohio IN: INS SU: ERN LC -- CL009 -- 1209 11/05/91 11:28 EST