The Seibels Bruce Group, Inc. Announces 2003 Third Quarter Results and Other Matters
14 November 2003 - 10:00PM
PR Newswire (US)
The Seibels Bruce Group, Inc. Announces 2003 Third Quarter Results
and Other Matters COLUMBIA, S.C., Nov. 14 /PRNewswire-FirstCall/ --
The Seibels Bruce Group, Inc. (BULLETIN BOARD: SBIG) today
announced financial results for the quarter that ended September
30, 2003 and other matters. For the third quarter of 2003 the
Company reported a net loss of $1.5 million, or $(0.21) per share
(basic and diluted). This is compared with a net profit of $1.8
million, or $0.21 per share (basic and diluted), for last year's
third quarter. The automobile segment, which includes the Company's
continuing nonstandard operations in North and South Carolina, as
well as several runoff operations, reported a profit of $18
thousand for the quarter. "Our North Carolina nonstandard
automobile operation experienced a decrease in premiums written and
ceded to the North Carolina Reinsurance Facility that contributed
to a reduction in the profitability of our automobile segment,"
said Michael A. Culbertson, Seibels Bruce president. "We believe
the decrease is attributable to increased competition and the
decrease in new policies written for members of the United States
armed forces stationed in North Carolina. In addition, the North
Carolina operation has been affected by 'suspension of coverage'
requests received on in-force military polices while the
policyholders are deployed in the Middle East. As a result of this
trend, applicable accounting rules require that we evaluate the
recorded value of goodwill associated with that operation. As a
result of this analysis, we recorded a non-cash charge to earnings
of $700 thousand in September 2003." Culbertson concluded, "Our
North Carolina nonstandard automobile program will continue to be
the foundation of our automobile segment." The flood segment
reported a net profit of $1.0 million for the quarter. "In the
fourth quarter of 2002 we sold our flood insurance business and
have been amortizing the deferred gain from the transaction into
income through September 30, 2003," said Culbertson. "From this
point forward, the principal source of income for the flood segment
will be America's Flood Services, Inc., which offers flood zone
determinations and flood zone mapping services to customers located
throughout the United States." The Company's commercial operations
reported a net loss of $976 thousand for the quarter. "The loss is
primarily attributable to losses incurred from Hurricane Isabel,
which made landfall in September 2003, and from decreased business
volume resulting from the August 2002 South Carolina Department of
Insurance Order Imposing Administrative Supervision and Appointing
Supervisor. The Order was lifted in May 2003, and we are pleased to
report that, as of October 2003, we have restored the insurance
writing authorities that existed prior to the Order," Culbertson
stated. The Company's adjusting services segment, Insurance Network
Services, Inc. (INS), reported a profit of $244 thousand for the
quarter. "Earlier in the year we completed an evaluation of each of
INS' service lines and discontinued those lines that were
unprofitable," said Culbertson. "INS' continuing operations are now
substantially comprised of claims administration services performed
for QualSure Insurance Corporation." The all-other segment reported
a loss of $1.8 million. "We have continued to experience
significant reserve development related to our runoff asbestos and
environmental business written primarily in the 1980's," said
Culbertson. "Continuing increases in the frequency of newly
reported claims, as well as development in the severity of existing
claims, resulted in a charge to earnings of over $1.7 million for
the quarter ended September 30, 2003." In November 2003, the
Company signed non-binding Letters of Intent with unaffiliated
third parties for proposed sales of two of its South Carolina
domiciled insurance subsidiaries, South Carolina Insurance Company
and Consolidated American Insurance Company. Any transaction that
may result from these Letters of Intent is subject to, among other
things, the satisfactory completion of due diligence and approval
from the South Carolina Department of Insurance. "Selling these
inactive insurance subsidiaries eliminates a number of distractions
that detract attention from our continuing insurance operations in
North and South Carolina," said Culbertson. Within the next several
days, the Company intends to file a preliminary proxy statement
with the Securities and Exchange Commission (SEC) relating to a
special meeting of shareholders to vote on a proposed amendment to
the Company's Articles of Incorporation to effect a reverse stock
split of the Company's common stock. Culbertson stated, "If the
amendment is approved by the Company's shareholders, the reverse
stock split will enable the Company to terminate registration of
its common stock and its obligations to file annual and periodic
reports and make other filings with the SEC." Culbertson concluded,
"With the expected disposition of our inactive insurance
subsidiaries and the restoration of our insurance writing
authorities that existed prior to the Order, Seibels Bruce can
focus on restoring and maintaining agent relationships,
strategically growing our business and positioning ourselves to add
additional lines of business or services as viable opportunities
arise." The Seibels Bruce Group, Inc., headquartered in Columbia,
South Carolina, is a holding company for four property and casualty
insurance companies that offer commercial, nonstandard automobile
and homeowners insurance. In addition, Seibels Bruce offers claim
administration services to insurance companies and other businesses
through INS; flood zone determination services through America's
Flood Services, Inc.; and managing general agency services through
Seibels, Bruce & Company. Additional information about Seibels
Bruce can be found online at http://www.seibels.com/. Certain items
in this press release constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
and as such involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of Seibels Bruce or its subsidiaries to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such
forward-looking statements speak only as of the date of this press
release. Seibels Bruce expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward- looking statements contained herein to reflect any change
in Seibels Bruce's expectations with regard thereto or any change
in events, conditions or circumstances on which any statement is
based. The Seibels Bruce Group, Inc. RESULTS OF OPERATIONS (in
thousands, unaudited) For the Three For the Nine Months Ended
Months Ended September 30, September 30, Revenues: 2003 2002 2003
2002 Automobile $3,382 $3,604 $10,249 $11,897 Flood 1,652 5,292
5,681 14,389 Commercial 2,231 2,567 7,136 8,584 Adjusting Services
1,421 2,075 4,942 6,233 All Other 235 10,602 1,125 11,660 Total
$8,921 $24,140 $29,133 $52,763 Net income (loss): Automobile $18
$125 $(229) $1,330 Flood 1,004 650 3,757 1,272 Commercial (976) 118
(1,043) 1,052 Adjusting Services 244 476 721 1,001 All Other
(1,829) 400 (2,569) 663 Total $(1,539) $1,769 $637 $5,318 Basic
(loss) earnings per share: $(0.21) $0.21 $0.04 $0.64 Weighted
average shares outstanding 7,817 7,832 7,825 7,832 Diluted (loss)
earnings per share: $(0.21) $0.21 $0.04 $0.62 Weighted average
shares outstanding 7,817 8,028 7,854 8,164 DATASOURCE: The Seibels
Bruce Group, Inc. CONTACT: Jennifer Davis, Corporate Communications
of The Seibels Bruce Group, Inc., +1-803-748-2353, or fax,
+1-803-748-8420, or email, Web site: http://www.seibels.com/
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