SIGC has risen 34% in less than a month, looks very expensive at the moment with a PE of 10. Just joking. If picking dirt cheap stocks like
this, was so easy I would be a millionaire. Oh I forgot- Waren Buffet was asked why he didn't invest in the property market. His answer: "Why should I", was his reply. It was much easier for him to make money out of the stock market. Go figure.
Company Press Release
Symons International Group, Inc. Reports Second
Quarter Results
INDIANAPOLIS--(BUSINESS WIRE)--July 29, 1997--Symons International
Group, Inc. (NASDAQ/NMS:SIGC) a leading provider of crop and nonstandard
automobile insurance, today announces the results for the second quarter ended
June 30, 1997.
The Company is pleased to report continued growth in its key product lines, crop
and nonstandard automobile insurance. Gross written premiums for the three
months ending June 30, 1997, increased 41% to $149,175,000 from $105,528,000
and for the six months ended June 30, 1997, increased 90% to $279,065,000 from
$146,950,000 in the corresponding periods of 1996.
Net earnings for the second quarter of 1997 increased 35% to $3,677,000 as
compared to $2,718,000 for the second quarter of 1996. Year-to-date net earnings
for 1997 were $9,586,000 for an increase of 123% over 1996 six month results of
$4,304,000.
Earnings per share increased to $0.90 for the first six months of 1997 as compared
to $0.61 for the same period in 1996. Earnings per share for the second quarter of
1997 were $0.35 (shares outstanding 10,617,000) as compared to $0.39 (shares
outstanding 7,000,000) in the second quarter of 1996.
The Company, as part of management's actions to reduce costs and combine
operations of the nonstandard automobile division, has combined the claims
management as well as the reserving philosophies of Superior Insurance Company
with Pafco General Insurance Company, the two nonstandard automobile insurance
companies in the Group. In order to align the different reserving philosophies of its
two nonstandard automobile insurance companies, SIG has adopted the more
conservative methodology for the combined business which required an increase in
reserves of $1.8 million after tax or $0.17 per share.
The combined ratio of the nonstandard automobile segment was 99.3% for the first
six months of 1997 as compared to 98.9% for the comparable period of 1996.
Excluding this one time increase in reserves, the combined ratio would have been
95.3%. The Company continues to take action to improve these results through
continued introduction of multi-tiered products in additional states, elimination of
unprofitable agents, rate increases and continued technological advancements.
These actions are expected to further improve the combined loss ratios. The
nonstandard automobile division is, at June 30, 1997, owned 52% by SIG, Inc.,
and the agreement to acquire the remaining 48% minority interest share from GS
Capital Partners, II, L.P., which was announced last week, will be reflected in
future earnings.
The crop insurance division, IGF Insurance Company, continues to demonstrate
both growth in premiums and earnings. Year-to-date premiums increased by 35%
to $108,356,000 in 1997 from $80,537,000 in 1996. Pre-tax earnings for the first
six months of 1997 increased by 154% to $13,180,000 from $5,184,000 in 1996.
IGF continues to benefit from privatization of the crop insurance industry and
continued market share penetration.
The Company's stockholders' equity increased to $71,900,000 from $65,866,000 at
March 31, 1997 due to second quarter earnings and strong returns on the
Company's investment portfolio. The total capital deployed in its insurance
subsidiaries for writing of business is in excess of $118,000,000 at June 30, 1997.
Symons International Group, Inc. (NASDAQ:SIGC) of Indianapolis is primarily
engaged in the nonstandard auto and crop insurance business and maintains active
business licenses in 35 U.S. states.
Anyone wishing further information may contact: Alan G. Symons Chief Executive
Officer Indianapolis (317) 259-6302
SYMONS INTERNATIONAL GROUP, INC.
Consolidated Financial Highlights (unaudited)
6 months ending
June 30,
__________________________
STATEMENT OF EARNINGS 1997 1996
$ $
REVENUES
Gross premium revenue 279,065,000 146,950,000
Premiums earned 136,012,000 59,066,000
Net investment income 5,276,000 1,533,000
Other income 10,791,000 4,062,000
Net realized capital gain (loss) 1,684,000 228,000
153,763,000 64,889,000
___________ ___________
EXPENSES
Claims expenses 103,293,000 45,275,000
Operating expenses 30,397,000 12,283,000
Debt servicing costs 2,744,000 1,261,000
Income before income taxes and
minority interest 17,329,000 6,070,000
Provision for income taxes 6,183,000 1,854,000
Minority interest 1,560,000 (88,000)
NET EARNINGS 9,586,000 4,304,000
___________ ___________
___________ ___________
EARNINGS $0.90 $0.61
EARNINGS PER SHARE-PRIMARY $0.85 $0.61
OPERATING EPS $0.85 $0.60
Wtd avg shares o/s-primary 10,617,000 7,000,000
Wtd avg shares o/s-fully diluted 10,636,000 7,000,000
3 months ending
June 30,
__________________________
STATEMENT OF EARNINGS 1997 1996
$ $
REVENUES
Gross premium revenue 149,175,000 105,528,000
Premiums earned 72,897,000 45,281,000
Net investment income 2,838,000 975,000
Other income 5,573,000 3,085,000
Net realized capital gain (loss) 742,000 264,000
82,230,000 49,605,000
___________ ____________
EXPENSES
Claims expenses 58,025,000 36,312,000
Operating expenses 17,514,000 8,614,000
Debt servicing costs 1,244,000 1,012,000
Income before income taxes
and minority interest 5,447,000 3,667,000
Provision for income taxes 1,897,000 1,037,000
Minority interest (127,000) (88,000)
NET EARNINGS 3,677,000 2,718,000
___________ ____________
___________ ____________
EARNINGS $0.35 $0.39
EARNINGS PER SHARE-PRIMARY $0.35 $0.39
OPERATING EPS $0.32 $0.37
Wtd avg shares o/s-primary 10,593,000 7,000,000
Wtd avg shares o/s-fully diluted 10,631,000 7,000,000
BALANCE SHEETS
As at June 30,
1997 1996
$ $
ASSETS
Cash & investments 208,829,000 161,205,000
Due from insureds &
reinsurers 320,878,000 185,207,000
Other receivables 4,742,000 2,868,000
Property & equipment 9,555,000 6,552,000
Deferred acquisition costs 13,121,000 13,192,000
Deferred income taxes 2,899,000 1,635,000
Goodwill 2,114,000 3,140,000
Other assets 5,503,000 4,874,000
___________ ___________
567,641,000 378,673,000
___________ ___________
___________ ___________
LIABILITIES
Outstanding claims 137,924,000 93,628,000
Unearned premiums 160,953,000 114,854,000
Other payables 125,268,000 78,961,000
Term loans 44,872,000 55,750,000
Minority interest 26,724,000 17,723,000
495,741,000 360,916,000
SHAREHOLDERS' EQUITY 71,900,000 17,757,000
567,641,000 378,673,000
___________ ___________
___________ ___________
End of period shares o/s 10,450,000 7,000,000
Book value per share $6.88 $2.54
STATEMENT OF CASH FLOWS
6 months ending June 30,
1997 1996
$ $
OPERATING ACTIVITIES
From operations 9,586,000 4,304,000
Change in net assets 16,924,000 3,678,000
___________ ___________
Cash provided by operations 26,510,000 7,982,000
___________ ___________
INVESTING ACTIVITIES
Acquisition of Superior 0 (66,389,000)
Net purchases of investments (14,399,000) (15,611,000)
Net purchases of fixed assets (2,294,000) (579,000)
___________ ___________
Cash used in investing (16,693,000) (82,579,000)
___________ ___________
FINANCING ACTIVITIES
Proceeds - minority interest 2,304,000 21,200,000
Increase in bank loans (3,128,000) 49,939,000
Repayments/advances from related
parties (1,582,000) 1,147,000
Cash provided from financing (2,406,000) 72,286,000
___________ ___________
Change in cash resources 7,411,000 (2,311,000)
Cash resources beginning of
period 22,660,000 2,311,000
___________ ___________
Cash resources end of period 30,071,000 0
___________ ___________
___________ ___________
Note: Cash is comprised of cash and short-term investments.
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