South Carolina-based The Seibels Bruce Group, Inc., announced financial results for the fourth quarter and year that ended Dec. 31, 2002.
For the fourth quarter of 2002 the company posted a net profit of $805 thousand, or $0.09 per share (basic and diluted). This is compared with a net profit of $1.1 million, or $0.14 per share (basic and diluted), for the fourth quarter of 2001.
For the year that ended Dec. 31, 2002, the company posted a net profit of $6.1 million, or $0.73 per share (basic) and $0.72 per share (diluted), compared to a net profit of $4.4 million, or $0.54 per share (basic) and $0.53 per share (diluted) for 2001.
“While we remain under certain regulatory restrictions, we continue to be profitable and to make progress with our regulators,” Seibels Bruce president Michael Culbertson commented. “Two of our subsidiary companies, Catawba Insurance Company and Universal Insurance Company, have been able to step in and provide products previously written through South Carolina Insurance Company.”
Catawba Insurance Company (“Catawba”) received regulatory approval to continue to write risk-bearing nonowners and tiered commercial automobile programs in South Carolina, to begin writing risk-bearing commercial lines business in South Carolina, Georgia and Tennessee previously written by South Carolina Insurance Company (“SCIC”) and to write new risk-bearing commercial lines business in South Carolina and Georgia. Catawba has also received approval to begin writing risk-bearing personal automobile and homeowners insurance in South Carolina. Universal Insurance Company (“Universal”) received regulatory approval to begin renewing SCIC’s risk-bearing commercial lines business in North Carolina.
The automobile segment, which includes the company’s continuing nonstandard program in North Carolina and the nonowners program in South Carolina, as well as runoff operations, reported overall net income of $1.4 million. “We will continue to rely on Universal, our North Carolina-based nonstandard automobile operation, to contribute to the profits of our automobile segment,” Culbertson added.
The flood segment reported net income of $971,000 for the year.
“In the fourth quarter of 2002 we sold our flood insurance business and will record the deferred gain from the transaction through the fourth quarter of 2003. We are redirecting our resources to new risk-bearing operations, including the planned introduction of an automobile program in South Carolina in the second quarter of 2003 and a homeowners program in South Carolina in the third quarter of 2003.”
Commercial operations reported a net profit of $1.8 million for the year. “We are working closely with the South Carolina Department of Insurance and regulators in other states to meet the necessary requirements to resume writing new commercial lines business in North Carolina and Tennessee and new and renewal business in Kentucky as soon as possible.”
Seibels Bruce’s adjusting services company, Insurance Network Services, Inc. (INS), posted a profit of $876 thousand for the year. “INS’ operations continue to provide a significant contribution to the overall profitability of the Company. Going forward, INS will pursue additional arrangements to provide claim administration services.”
The all-other segment posted a profit of $1.1 million. “The earnings in the all-other segment are primarily a result of the Company’s managing general agent operations and of the Human Dynamics Corporation program.”
Culbertson concluded, “Although our profits include approximately $3.1 million in nonrecurring gains, including the previously announced sale of our investment in Insurance Services Office, Inc., the redemption of our ownership interest in QualSure Holding Corporation and part of the gain from the sale of our flood insurance business, we are pleased with the performance of our continuing operations. The challenge going forward is working through current regulatory restrictions and bringing new products to market to become a stronger insurance company in the future.”
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