National Security (NASDAQ:NSEC)
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From Sep 2019 to Sep 2024
The National Security Group, Inc. (the Company) (Nasdaq: NSEC), today
reported results for the quarter and nine months ended September 30,
2008 and 2007, based on accounting principles generally accepted in the
United States of America, as follows:
Three Months Ended September 30
Nine Months Ended September 30
2008
2007
2008
2007
Premium Income
$
11,707,000
$
15,913,000
$
42,261,000
$
46,362,000
Investment Income
1,332,000
1,216,000
3,894,000
3,629,000
Realized Investment (Losses) Gains
(1,174,000
)
(4,000
)
(1,026,000
)
529,000
Other Income
254,000
261,000
927,000
820,000
Total Revenues
$
12,119,000
$
17,386,000
$
46,056,000
$
51,340,000
(Loss) Income from Continuing Operations
$
(6,945,000
)
$
1,505,000
$
(6,199,000
)
$
3,169,000
Income (Loss) from Discontinued Operations
-
-
-
1,319,000
Net (Loss) Income
$
(6,945,000
)
$
1,505,000
$
(6,199,000
)
$
4,488,000
(Loss) Earnings Per Share from Continuing Operations
$
(2.82
)
$
0.61
$
(2.51
)
$
1.28
Earnings Per Share from Discontinued Operations
-
-
-
0.54
Net (Loss) Earnings Per Common Share
$
(2.82
)
$
0.61
$
(2.51
)
$
1.82
For the three months ended September 30, 2008, the Company reported a
net loss of $(6,945,000) or $(2.82) per share, as compared to net income
of $1,505,000, or $0.61 per share in the same three month period last
year. Primary factors contributing to the loss for the three months
ended September 30, 2008 are investment write downs due to “Other
Than Temporary Impairments” in the investment
portfolio and catastrophe losses from Hurricane Gustav and Hurricane
Ike. Investment write downs totaled $(1,277,000) net of tax, or $(0.52)
per share. Hurricane losses from insurance claims incurred from
Hurricane Gustav and Hurricane Ike totaled $(5,900,000) net of tax, or
$(2.39) per share.
Premium revenue for the three month period ended September 30, 2008
declined 26% compared to the same period last year. The most significant
factor contributing to the decline in premium revenue for the quarter
was an increase in ceded premium due to the payment of catastrophe
reinstatement premium triggered by Hurricane Gustav. However, the
Company has experienced a decline in core premium revenue of 7% during
2008.
For the nine months ended September 30, 2008, the Company reported a net
loss of $(6,199,000) or $(2.51) per share, as compared to net income of
$4,488,000, or $1.82 per share in the same nine month period last year.
Third quarter hurricane and investment losses were the primary factors
contributing to the year to date loss in 2008.
Shareholders’ equity as of September 30, 3008
totaled $35,106,000, a decline of 22% for the quarter. Hurricane losses
and realized investment losses due to impairment write downs were the
primary factors contributing to the decline in the Company’s
capital position. However, a decline in market value of the Company’s
investment portfolio of approximately 5% led to a decline in accumulated
unrealized capital gains of $5,346,000 further reducing the capital
position of the Company at September 30, 2008. While the decline in the
Company’s capital position due to these
unprecedented events of the last quarter have been significant, the
Company remains well capitalized at levels that are sufficient to
support current business plans.
The National Security Group, Inc., through its property & casualty and
life insurance subsidiaries, offers property, casualty, life, accident
and health insurance in twelve states.