National Security Group, Inc. Releases Earnings

  
    
  
  
    
      The National Security Group, Inc. (NASDAQ: NSEC) today announced its 
      financial results for the year and three month periods ended December 
      31, 2007. Total revenues for the year increased 3.65% to $69,563,000 
      compared to $67,113,000 for 2006. Leading the increase in total revenue 
      was a 5.73% increase in premium revenue to $62,250,000 in 2007 compared 
      to 58,874,000 for the year 2006. Growth in the dwelling fire and 
      homeowners lines of business in the property and casualty subsidiaries 
      were the primary contributors to the growth in premium revenue.
    
    
      Net income for the year increased 42.12% to $6,040,000, or $2.45 per 
      share, compared with net income of 4,250,000, or $1.72 per share for 
      2006. Net income from continuing operations of the insurance 
      subsidiaries was $4,721,000 compared to $4,439,000 in 2006, an increase 
      of 6.35%. Increased earnings in the property and casualty subsidiary 
      were the primary contributor to the increase in earnings for the year. 
      Net income from discontinued operations of $1,319,000 consisted of a 
      gain on disposal of the majority of a 50% investment in Mobile Attic, 
      Inc. in the second quarter of 2007. The Company maintains a 5% interest 
      in Mobile Attic. Mobile Attic’s net loss from 
      discontinued operations for 2006 was $189,000.
    
    
      Fourth quarter 2007 net income declined 2.08% to $1,552,000, or $0.63 
      per share, compared to $1,585,000, or $0.64 per share for the quarter 
      ended December 31, 2006. Moderate adverse development on claims incurred 
      in prior years was the primary contributor to the decrease in earnings 
      during the fourth quarter. There was no material contribution to net 
      income from discontinued operations in the fourth quarter of 2007.
    
    
      Stockholders equity for the year ended December 31, 2007 was $48,447,000 
      compared to $45,379,000 at December 31, 2006, an increase of $3,068,000 
      or 6.76%. The change in stockholders equity is composed of dividends 
      paid to shareholders of $2,220,000; net income of $6,040,000 and a 
      decline in accumulated other comprehensive income, consisting of 
      accumulated unrealized capital losses, of $752,000. Year end book value 
      per share, defined as stockholders equity divided by common shares 
      outstanding of 2,466,600, was $19.64 at December 31, 2007 compared to 
      $18.39 at December 31, 2006.
    
    
      
        
        
        
           
        
        
        
        
           
        
        
           
        
        
        
      
      
        
        
        
        
        
          Three Months
        
        
        
        
        
        
          Year
        
      
      
        
        
        
        
        
          Ended December 31
        
        
        
        
        
        
          Ended December 31
        
      
      
        
        
        
        
        
          2007
        
        
           
        
        
          2006
        
        
        
        
        
        
          2007
        
        
           
        
        
          2006
        
      
      
        
          Premium Earned
        
        
        
        
          $
        
        
          15,888,000
        
        
        
        
          $
        
        
          14,331,000
        
        
        
        
        
        
          $
        
        
          62,250,000
        
        
        
        
          $
        
        
          58,874,000
        
      
      
        
          Investment Income
        
        
        
        
        
        
          1,120,000
        
        
        
        
        
        
          1,109,000
        
        
        
        
        
        
        
        
          4,749,000
        
        
        
        
        
        
          4,463,000
        
      
      
        
          Realized Investment Gains
        
        
        
        
        
        
          964,000
        
        
        
        
        
        
          646,000
        
        
        
        
        
        
        
        
          1,493,000
        
        
        
        
        
        
          2,565,000
        
      
      
        
          Other Income
        
        
        
        
        
        
          251,000
        
        
        
        
        
        
          274,000
        
        
        
        
        
        
        
        
          1,071,000
        
        
        
        
        
        
          1,211,000
        
      
      
        
          Total Revenues
        
        
        
        
          
             
          
        
        
          
            18,223,000
          
        
        
        
        
        
        
          16,360,000
        
        
        
        
        
        
        
        
          69,563,000
        
        
        
        
        
        
          67,113,000
        
      
      
        
          Net Income
        
        
        
        
          $
        
        
          1,552,000
        
        
        
        
          $
        
        
          1,585,000
        
        
        
        
        
        
          $
        
        
          6,040,000
        
        
        
        
          $
        
        
          4,250,000
        
      
      
        
          Net Income Per Share
        
        
        
        
          $
        
        
          0.63
        
        
        
        
          $
        
        
          0.64
        
        
        
        
        
        
          $
        
        
          2.45
        
        
        
        
          $
        
        
          1.72
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      The National Security Group, Inc., through three wholly owned 
      subsidiaries, offers a range of personal lines life, accident and 
      health, property and liability insurance in twelve states. The Company 
      is listed on the NASDAQ Global Market under the symbol: NSEC. For more 
      financial information please visit the investor section our website www.nationalsecuritygroup.com.