MUTUAL ASSURANCE, INC. ANNOUNCES THIRD QUARTER RESULTS
BIRMINGHAM, Ala., Nov. 8 /PRNewswire/ -- Mutual Assurance, Inc. (NASDAQ: MUTL) today reported increases in both total revenue and net income for the third quarter of 1991.
For the quarter ended Sept. 30, net income increased 18 percent to $4,600,000 as compared to $3,900,000 a year ago; revenue increased 2 percent to $19,600,000 as compared with $19,300,000 during the third quarter of 1990.
The two primary components of total revenue are premiums earned and net investment income. Premiums earned for the third quarter of 1991 were $14,500,000 compared to $15,100,000 for the third quarter of 1990. Net investment income for the quarters ended Sept. 30, 1991 and 1990, was $4,800,000 and $4,000,000, respectively.
For the nine months that ended Sept. 30, Mutual Assurance's net income increased 33 percent to $13,000,000, from $9,800,000 the year before. During the same period, however, total revenues dropped 5 percent, to $54,600,000 in 1991 from $57,500,000 in 1990. Earned premiums were $39,200,000 for the first nine months of 1991 compared to $46,300,000 for the same period in 1990. Net investment income was $14,100,000 through Sept. 30, 1991, and $10,700,000 through Sept. 30, 1990.
"Our underwriting results improved somewhat, but the increase in net income for the nine month period is principally attributable to an increase in our investment income," said Frank B. O'Neil, director of corporate communications. O'Neil explained that the invested assets of Mutual Assurance rose 21 percent during the first nine months of the year, helping to generate the additional investment income.
As a result of its conversion from a mutual company to a stock company and the completion of its initial public offering on Sept. 11, 1991, Mutual Assurance, Inc. now has 7.9 million shares outstanding and the company's capital was increased by approximately $18.4 million.
Mutual Assurance is the leading provider of professional liability insurance and related liability insurance for physicians, dentists and hospitals and others engaged in the delivery of health care in Alabama. Mutual Assurance was organized 1976 in response to Alabama's medical malpractice insurance crisis and provided professional and related premises liability insurance to Alabama physicians. Subsequently, the company extended its coverage to include dentists and for the last several years has offered professional and comprehensive liability insurance to Alabama hospitals and health care facilities such as ambulatory surgical facilities and walk-in medical clinics.
/CONTACT: Frank B. O'Neil, 205-877-4461, or Robert D. Francis, secretary, 205-877-4400, both of Mutual Assurance/
(MUTL) CO: Mutual Assurance, Inc. ST: Alabama IN: INS SU: ERN BN-BR -- AT004 -- 0899 11/08/91 11:37 EST