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MOTOR CLUB OF AMERICA ANNOUNCES THIRD QUARTER AND NINE MONTH RESULTS

 NEWARK, N.J., Nov. 17 /PRNewswire/ -- Motor Club of America (NASDAQ-NMS: MOTR) ("Holding") today reported results for the three and nine months ended Sept. 30, 1993.
 For the three months ended Sept. 30, 1993, net income was $463,896, or $.23 per share, compared with a net loss of $21,809,973, or $10.68 per share in 1992. For the nine months ended Sept. 30, 1993, net income was $2,552,166, or $1.25 per share, compared with a net loss of $21,729,340, or $10.64 per share, in 1992.
 The 1992 three and nine month results include the write-off of Holding's investment in MCA Insurance Company ("MCAIC") and its subsidiaries, as a result of MCAIC's insolvency in the wake of Hurricane Andrew.
 For the three months ended Sept. 30, 1993, revenues were $8,614,850 compared with $10,309,650 reported for the same period in 1992. For the nine months ended Sept. 30, 1993, revenues were $26,937,511 compared with $29,904,234 reported for the same period in 1992.
 Net income for the three and nine month periods ended Sept. 30, 1993, included $916,387 and $2,682,299, respectively, for the reversal of FAIRA surtaxes and assessments previously accrued in 1991.
 Excluding the 1992 write-off of MCAIC and its subsidiaries, as well as the FAIRA reversals, net income in the three and nine months ended Sept. 30, 1993, decreased $1,133,204, or 167 percent, and $1,877,549, or 107 percent, respectively, as compared to the same periods in 1992.
 The reduction in the three month earnings (excluding the items described above) in 1993 as compared to 1992 principally is due to higher legal fees resulting from MCAIC's insolvency ($144,000 for the three month period) along with a higher commercial automobile loss and loss expense ratio for the period. In addition, the results were adversely affected by higher catastrophe reinsurance costs in 1993 and a reduction in other revenues of $353,283 earned by Holding as a result of the elimination of the MCAIC Rental Car program in 1992.
 The reduction in the nine month earnings (excluding the items described above) in 1993 as compared to 1992 principally is due to additional reserves in 1993 of $1,372,000, including an amount for a reinsurance dispute, as well as increased legal fees of $210,000 as a result of the litigation brought by the MCAIC Receiver and other Receivership issues. In addition, the results were adversely affected by higher reinsurance costs in 1993 and a reduction in other revenues of $1,029,769 as a result of the elimination of the MCAIC Rental Car program in 1992. Holding's property and casualty insurance subsidiaries have experienced lower loss and loss expense ratios during 1993 along with stable expenses other than those described above.
 Holding announced in August that the Oklahoma Insurance Department was seeking to reverse the stock dividend of Holding's subsidiary, Motor Club of America Insurance Company ("Motor Club"), back to MCA Insurance company in Liquidation.
 Holding's motion to dismiss the Petition on the grounds of lack of jurisdiction was granted on Nov. 5, 1993, without prejudice to the Receiver to replead the Petition, which the Receiver did on Nov. 15. In the meantime, Holding and Motor Club, having instituted litigation in New Jersey against the Oklahoma Insurance Commissioner for a ruling that Holding is the owner of the stock of Motor Club, expect to have their motion for summary judgment returnable by year-end.
 Holding is aggressively contesting the allegation that Holding is not the owner of the stock of Motor Club.
 The filing of the Petition does not affect the ongoing operations of Holding or its property and casualty insurance subsidiaries. Motor Club is domiciled in the state of New Jersey and writes private passenger automobile insurance in that state. Motor Club's subsidiary, Preserver Insurance company ("Preserver"), writes homeowners and small commercial insurance in New Jersey. Motor Club and Preserver constitute approximately 95 percent of the consolidated revenues of Holding.
 MOTOR CLUB OF AMERICA AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations
 (Unaudited)
 Periods ended Nine months Three months
 Sept. 30, 1993 1992(A) 1993 1992(A)
 Revenues:
 Insurance premiums
 (net of premiums
 ceded totaling
 $6,713,825,
 $820,931,
 $2,982,257
 and $185,154) $23,483,005 $24,631,375 $7,551,010 $8,468,567
 Net investment
 income 2,084,262 2,142,816 683,711 699,861
 Realized gains
 on sales of
 investments 163,773 135,879 1,071 110,327
 Motor Club
 membership fees 948,260 1,181,089 318,637 371,858
 Other revenues 258,211 1,813,075 60,421 659,037
 Total revenues 26,937,511 29,904,234 8,614,850 10,309,650
 Losses and Expenses:
 Insurance losses and
 loss expenses
 incurred (net of
 reinsurance recoveries
 totaling $4,517,002,
 $1,006,272,
 $1,113,493
 and $849,432) 14,045,142 17,110,909 4,515,150 5,967,931
 Amortization of
 deferred policy
 acquisition costs 7,172,569 6,851,484 2,371,162 2,515,102
 Other operating
 expenses 5,566,859 4,622,427 2,091,430 1,738,974
 Reversal of prior year's
 accrual of New Jersey
 surtaxes and
 assessments (2,682,299) --- (916,387) ---
 Write-off of investment
 in MCA Insurance
 Company and its
 subsidiaries --- 23,476,756 --- 22,490,686
 Motor Club benefits 220,313 241,797 69,101 76,729
 Total losses and
 expenses 24,322,584 52,303,373 8,130,456 32,789,422
 Income (loss) before
 Federal income tax 2,614,927 (22,399,139) 484,394 (22,479,772)
 Provision (benefit) for
 Federal income taxes 62,761 (669,799) 20,498 (669,799)
 Net income (loss) $ 2,552,166 ($21,729,340) $463,896 ($21,809,973)
 Per common share:
 Net income (loss) $1.25 ($10.64) $.23 ($10.68)
 (A) Amounts reclassified to conform with 1993 presentation.
 -0- 11/17/93
 /CONTACT: Patrick J. Haveron, vice president, controller of Motor Club of America, 201-733-4139/


CO: Motor Club of America ST: New Jersey IN: INS AUT SU: ERN

MP-TW -- NY092 -- 5679 11/17/93 16:36 EST
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Date:Nov 17, 1993
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