Strong Premium Growth in Texas and Oklahoma Markets Reflected in 1999 Results;
Rescission Of Reinsurance Treaties Results in a Net After Tax Gain Of
$3.8 Million in Fourth Quarter
GRAND CAYMAN, Cayman Islands, Feb. 18 /PRNewswire/ -- Chandler Insurance
Company, Ltd., (Nasdaq: CHANF), the parent of subsidiary companies based in
Oklahoma, today announced results for the fourth quarter and year ended
December 31, 1999. Net income for 1999 was $2,151,000 or $0.34 per share
compared to $3,442,000 or $0.53 per share in 1998. The 1999 results included
a net after tax gain of $3.8 million that resulted from the rescission of two
reinsurance treaties that had been in effect since January 1, 1999. The 1999
results also included weather-related losses of $4.3 million (or $2.9 million
after income taxes) compared to $1.4 million (or $933,000 after income taxes)
during 1998. The 1998 results included the recapture of $3.8 million in
litigation costs that were previously expensed during 1997. Net premiums
earned for 1999 were $108.3 million, a 55% increase from 1998. The rescission
of the reinsurance treaties increased net premiums earned in 1999 by $19.6
million. Excluding the rescission, net premiums earned were $88.7 million for
1999, a 27% increase from 1998.
Summary of Fourth Quarter Financial Results
(amounts in thousands except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
(unaudited) (audited)
1999 1998 Change 1999 1998 Change
Net premiums
earned $44,268 $18,591 +138% $108,327 $70,064 +55%
Litigation
expenses, net $450 $416 +8% $1,133 $(2,707) +142%
Income before
income taxes $4,299 $1,299 +231% $2,516 $3,795 -34%
Net income $3,104 $832 +273% $2,151 $3,442 -38%
Net income
excluding net
litigation
expenses $3,510 $1,202 +192% $3,214 $591 +444%
Net income per
common share $0.51 $0.13 +292% $0.34 $0.53 -36%
Diluted weighted
average common
shares
outstanding 6,086 6,430 -5% 6,347 6,438 -1%
"Gross premiums written for 1999 posted a 26% increase over 1998... Our
people's outstanding commitment to delivering first-class customer service has
been a key factor in Chandler's ability to avoid the erosion in premium levels
and policyholder base." --Brent LaGere, Chairman & CEO
During the fourth quarter of 1999, the Company's U.S.-based subsidiary
National American Insurance Company ("NAICO") agreed to rescind two
reinsurance treaties which covered a portion of its workers compensation
business and which had been in effect since January 1, 1999. The reinsurer
agreed to return the reinsurance premiums that had been paid by NAICO during
1999, less losses and ceding commissions that had been paid by the reinsurer.
The reinsurer also agreed to pay NAICO a fee of $10.0 million as additional
compensation for entering into the agreement. In January 2000, NAICO received
payment in the amount of $12.9 million to complete the transaction. The
rescission of the reinsurance treaties resulted in a net after tax gain of
$3.8 million, or $0.62 per share for the fourth quarter and $0.59 per share
for the year ended December 31, 1999. The rescission of the reinsurance
treaties increased net premiums written by $27.4 million, and increased net
premiums earned by $19.6 million in the fourth quarter and year ended December
31, 1999. The rescission also increased losses and loss adjustment expenses
by $17.0 million, and increased expenses for policy acquisition costs by
$7.0 million in these periods. The provision for federal income taxes
increased by $1.9 million in these periods due to the rescission of the
reinsurance treaties.
Net income for the fourth quarter of 1999 was $3,104,000 or $0.51 per
share compared to $832,000 or $0.13 per share in the fourth quarter of 1998.
Weather-related losses in the fourth quarter of 1999 were $321,000 compared to
$44,000 during the fourth quarter of 1998. The 1999 fourth quarter results
included an increase in losses and loss adjustment expenses in the standard
property and casualty, political subdivisions and group accident and health
programs, and included a decrease in net realized investment gains of
$515,000. Interest expense also increased $327,000 in the fourth quarter of
1999 primarily due to the $24 million debenture offering which was completed
by a subsidiary of the Company during the third quarter of 1999.
Net income for the 1999 year was $2,151,000 or $0.34 per share compared
to $3,442,000 or $0.53 per share in 1998. The 1998 year included the
recapture of $3.8 million of litigation expenses which had previously been
expensed during 1997. Weather-related losses in 1999 were $4.3 million
compared to $1.4 million during 1998. Net realized investment gains decreased
from $1.2 million in 1998 to $55,000 in 1999. Interest expense increased
$595,000 during 1999 compared to 1998 due primarily to the debenture offering
completed during 1999.
The Company's combined loss and underwriting expense ratio was 114.1% for
the fourth quarter of 1999 versus 99.9% for the fourth quarter of 1998, and
was 107.0% for the year ended December 31, 1999 versus 105.0% for the 1998
year. The operating ratio, which considers net interest income (excluding net
realized investment gains or losses) in addition to the combined ratio, was
110.6% for the fourth quarter of 1999 versus 91.9% for the fourth quarter of
1998, and was 101.9% for the year ended December 31, 1999 versus 95.7% for the
1998 year.
The $10.0 million fee for the rescission of the reinsurance treaties
discussed previously is not a component of these ratios; therefore, the effect
of the reinsurance rescission negatively impacted these ratios in the 1999
periods. Excluding the effect of the reinsurance rescission, the combined
ratios were 107.6% and 103.7% in the fourth quarter and year ended December
31, 1999, respectively. The operating ratios, excluding the effect of the
reinsurance rescission, were 101.4% and 97.4% in the fourth quarter and year
ended December 31, 1999, respectively.
Weather-related losses increased the loss ratio by 4.0 percentage points
during the year ended December 31, 1999 (4.9 percentage points excluding the
effect of the reinsurance rescission), while similar losses in 1998 increased
the loss ratio by 2.0 percentage points.
Brent LaGere, Chairman and Chief Executive Officer, commented: "Gross
premiums written for 1999 posted a 26% increase over 1998. Moreover,
Chandler's performance last year is even more notable considering that we
absorbed greater weather-related losses primarily from the record tornado
activity experienced across Oklahoma and surrounding states this past spring.
Our people's outstanding commitment to delivering first-class customer service
has been a key factor in Chandler's ability to avoid the erosion in premium
levels and policyholder base."
Through its U.S.-based subsidiary National American Insurance Company,
Chandler underwrites various lines of commercial property and casualty
insurance including surety bonds and workers compensation in Oklahoma and
surrounding states, principally Texas. The Company's main areas of
concentration include the construction, manufacturing, oil and gas, wholesale,
service and retail industries and political subdivisions.
Net Premiums Earned
Net premiums earned increased $25.7 million or 138% in the fourth quarter
of 1999 compared to the fourth quarter of 1998, and increased $38.3 million or
55% for the year ended December 31, 1999 compared to 1998. The rescission of
the reinsurance treaties increased net premiums earned in the 1999 periods by
$19.6 million. Increased written premium production in Texas and Oklahoma
also contributed to the increase in net premiums earned in the 1999 periods.
Net premiums earned in the standard property and casualty program
increased $22.4 million or 198% in the fourth quarter of 1999 compared to the
fourth quarter of 1998, and increased $30.0 million or 72% for the year ended
December 31, 1999 compared to the 1998 year. The rescission of the
reinsurance treaties increased net premiums earned in the 1999 periods by
$17.3 million in this program. Increased written premium production in Texas
also contributed to the increase in net premiums earned in the 1999 periods.
Net premiums earned in the political subdivisions program increased
$2.4 million or 67% in the fourth quarter of 1999 compared to the fourth
quarter of 1998, and increased $4.3 million or 33% for the year ended December
31, 1999 compared to the 1998 year. The rescission of the reinsurance
treaties increased net premiums earned in the 1999 periods by $2.3 million in
this program. Expansion of the school districts program in Texas and Missouri
and increased written premium production in Oklahoma also contributed to the
increase in net premiums earned in the 1999 periods.
Net premiums earned in the surety bond program increased $122,000 or 4% in
the fourth quarter of 1999 compared to the fourth quarter of 1998, and
increased $958,000 or 10% for the year ended December 31, 1999 compared to the
1998 year. The increase in 1999 was due primarily to increased written
premium production in California.
Net premiums earned in the group accident and health program increased
$449,000 or 39% in the fourth quarter of 1999 compared to the fourth quarter
of 1998, and increased $3.6 million or 78% for the year ended December 31,
1999 compared to the 1998 year. The increases are due primarily to a new
program covering Oklahoma employers on a fully insured basis which was
effective January 1, 1999. Net premiums earned for this program were
$1.3 million and $5.6 million for the fourth quarter and year ended December
31, 1999, respectively. NAICO discontinued writing new policies for
the excess portion of its group accident and health program effective
April 1, 1999.
Net Interest Income and Net Realized Investment Gains
At December 31, 1999, the Company's investment portfolio consisted
primarily of fixed income U.S. Government, high-quality corporate and tax
exempt bonds, with approximately 7% invested in cash and money market
instruments. The Company's portfolio contains no non-investment grade bonds
or real estate investments.
Net interest income increased $39,000 or 3% in the fourth quarter of 1999
compared to the fourth quarter of 1998, and decreased $873,000 or 13% for the
year ended December 31, 1999 compared to the 1998 year. The decrease in the
1999 year was due primarily to the purchase of additional reinsurance
coverages in 1998. Net realized investment gains in the fourth quarter of
1998 were $515,000. The Company did not have any net realized investment
gains in the fourth quarter of 1999. Net realized investment gains were
$55,000 and $1,163,000 in the years ended December 31, 1999 and 1998,
respectively.
Fee for Rescinded Reinsurance Treaties
During the fourth quarter of 1999, NAICO agreed to rescind two reinsurance
treaties which covered a portion of its workers compensation business and
which had been in effect since January 1, 1999. The reinsurer agreed to
return the reinsurance premiums that had been paid by NAICO during 1999, less
losses and ceding commissions that had been paid by the reinsurer. The
reinsurer also agreed to pay NAICO a fee of $10.0 million as additional
compensation for entering into the agreement.
Commissions, Fees and Other Income
The Company's income from commissions, fees and other income decreased
$37,000 or 9% in the fourth quarter of 1999 compared to the fourth quarter of
1998, and decreased $222,000 or 11% for the year ended December 31, 1999
compared to the 1998 year. The majority of the Company's income from
commissions, fees and other income are from the Company's subsidiary LaGere &
Walkingstick Insurance Agency, Inc. ("L&W").
L&W's brokerage commissions and fees before intercompany eliminations were
$2.5 million and $9.6 million in the fourth quarter and year ended December
31, 1999, respectively, compared to $2.2 million and $8.5 million in the year
ago periods. A large portion of the brokerage commissions and fees for L&W is
incurred by NAICO and thus eliminated in the consolidation of the Company's
subsidiaries.
Other income during 1998 included a gain of approximately $145,000 that
resulted from L&W's disposal of certain equipment.
Losses and Loss Adjustment Expenses
The percentage of losses and loss adjustment expenses to net premiums
earned ("loss ratio") was 79.7% and 73.7% for the quarter and year ended
December 31, 1999, compared to 64.0% and 68.3% in the comparable 1998
periods. The rescission of the reinsurance treaties increased losses and
loss adjustment expenses in the 1999 periods by $17.0 million. Excluding
the effect of the reinsurance rescission, the loss ratios were 74.4% and
70.9% in the fourth quarter and year ended December 31, 1999, respectively.
Weather-related losses (net of applicable reinsurance) from wind and hail
totaled $321,000 and $4.3 million for the fourth quarter and year ended
December 31, 1999, respectively, and increased the respective loss ratios by
1.3 and 4.9 percentage points (excluding the effect of the reinsurance
rescission). Weather-related losses totaled $44,000 and $1.4 million for the
fourth quarter and year ended December 31, 1998, respectively, and increased
the loss ratio for the 1998 year by 2.0 percentage points. The 1999 fourth
quarter results also reflected increased loss activity in the Company's
standard property and casualty, political subdivisions and group accident and
health programs.
NAICO is a major insurer of property owned by businesses, cities, towns
and school districts in Oklahoma. As a result, NAICO incurs weather-related
losses. On May 3, 1999, tornadoes, hail and strong winds caused severe damage
to property owned or used by NAICO insureds. NAICO currently estimates total
insured damages from the storms at approximately $26.4 million. Giving effect
to NAICO's applicable reinsurance, all of which is with unaffiliated
reinsurers, NAICO estimates its net loss before income tax benefit resulting
from the May 3 storms at $1.8 million which was recorded in the second quarter
of 1999.
Policy Acquisition Costs
Policy acquisition costs consist of costs associated with the acquisition
of new and renewal business and generally include direct costs such as premium
taxes, commissions to agents and ceding companies and premium-related
assessments and indirect costs such as salaries and expenses of personnel who
perform and support underwriting activities. NAICO also receives ceding
commissions from certain of the reinsurers who assume premiums from NAICO
under certain reinsurance contracts and the ceding commissions are accounted
for as a reduction of policy acquisition costs. Direct policy acquisition
costs and ceding commissions are deferred and amortized over the terms of the
policies. Recoverability of such deferred costs is dependent on the related
unearned premiums on the policies being more than expected claim losses.
The following table sets forth the Company's policy acquisition costs for
each of the three and twelve month periods ended December 31, 1999 and 1998:
Three months ended Twelve months ended
December 31, December 31,
1999 1998 1999 1998
(In thousands)
Commissions expense $5,593 $3,668 $20,542 $15,478
Other premium related
assessments 149 (463) 1,214 928
Premium taxes 997 361 3,179 3,144
Excise taxes 68 (14) 237 161
Dividends to policyholders 77 135 324 242
Other expense 50 86 205 151
Total direct expenses 6,934 3,773 25,701 20,104
Indirect underwriting
expenses 3,977 3,719 16,354 13,858
Commissions paid to
(received from)
reinsurers 4,963 (7,986) (9,267) (19,860)
Adjustment for deferred
acquisition costs (3,355) 4,475 (4,107) 2,931
Net policy acquisition
costs $12,519 $3,981 $28,681 $17,033
Total gross direct and indirect expenses as a percentage of direct written
and assumed premiums were 24.5% and 24.8% for the fourth quarter and year
ended December 31, 1999, respectively, compared to 24.4% and 25.3% in the
corresponding year ago periods. Commission expense as a percentage of gross
written and assumed premiums was 12.5% and 12.1% in the fourth quarter and
year ended December 31, 1999, respectively, compared to 11.9% and 11.5% in the
corresponding 1998 periods.
Indirect underwriting expenses were 8.9% and 9.6% of total direct written
and assumed premiums in the fourth quarter and year ended December 31, 1999,
respectively, compared to 12.1% and 10.3% in the corresponding 1998 periods.
Indirect expenses include general overhead and administrative costs associated
with the acquisition of new and renewal business, some of which is relatively
fixed in nature, thus, the percentage of such expenses to direct written and
assumed premiums will vary depending on the Company's overall premium volume.
Commissions paid to (received from) reinsurers included the return of
$9.7 million in ceding commissions during the fourth quarter of 1999 related
to the rescission of the reinsurance treaties discussed previously. Net
policy acquisition costs increased $7.0 million in the fourth quarter of 1999
due to the rescission of the reinsurance treaties, net of the adjustment for
deferred acquisition costs.
General and Administrative Expenses
General and administrative expenses were 7.1% and 7.8% of gross premiums
earned and commissions, fees and other income (excluding the fee related to
the rescission of the reinsurance treaties) in the fourth quarter and year
ended December 31, 1999, respectively, compared to 9.5% and 9.9% for the
corresponding 1998 periods.
General and administrative expenses have historically not varied in direct
proportion to the Company's revenues. A portion of such expenses is allocated
to policy acquisition costs (indirect underwriting expenses) and loss and loss
adjustment expenses based on various factors including employee counts,
salaries, occupancy and specific identification. Because certain types of
expenses are fixed in nature, the percentage of such expenses to revenues will
vary depending on the Company's overall premium volume.
Interest Expense
Interest expense increased $327,000 or 131% in the fourth quarter of 1999
compared to the 1998 quarter, and increased $595,000 or 64% in the year ended
December 31, 1999 compared to 1998. The increase was primarily due to
interest expense on the $24 million debenture offering which was completed on
July 16, 1999 by the Company's subsidiary Chandler (U.S.A.), Inc. ("Chandler
USA").
Litigation and Litigation Expenses
Litigation expenses reflect expenses related to the ongoing legal
proceedings involving CenTra, Inc. and certain of its affiliates ("CenTra").
In April 1998, the Oklahoma Federal Court in which the CenTra litigation is
pending ordered all parties to pay their own costs and attorney's fees in the
case thus denying CenTra's request of approximately $4.7 million for those
expenses. CenTra did not initially appeal this decision. Accordingly, the
Company reduced the previous first quarter 1997 net charge for CenTra
litigation matters by $3.8 million during the second quarter of 1998. In
later papers filed with the appellate court, CenTra has attempted to appeal
this decision. The Company believes CenTra's appeal of the decision is
barred. Increased or renewed activity could result in greater litigation
expenses in 2000 or future years.
The Company previously announced that during December 1999 it had acquired
1,989,200 shares of its own stock in exchange for payment of $15,204,758 to
CenTra pursuant to a divestiture plan proposed by NAICO and approved by a
U.S. District Court in Nebraska ("Nebraska Court"). All shares were cancelled
upon their return to the Company. The Nebraska Court had ordered CenTra to
divest all shares of Chandler owned or controlled by it or its affiliates.
An additional share block owned by CenTra and affiliates consists of
1,142,625 shares which will be divested following a ruling on CenTra's appeal
of a judgment entered by an Oklahoma Federal Court in April 1997. That
judgment requires CenTra to transfer the shares to the Company in exchange for
payment of $6,882,500. Following the conclusion of the appeal, the Nebraska
Court will determine the method of divestiture of these shares. The appellate
court heard oral argument on November 15, 1999 but has not yet given any
indication as to when it will rule on the appeal.
Income Tax Provision
The provision for or benefit from federal income taxes of the consolidated
U.S. subsidiaries varies with the level of income or loss before income taxes
of such subsidiaries. The provision or benefit relative to the consolidated
income before income taxes will also vary dependent on the contribution to
income before income taxes by the consolidated U.S. subsidiaries.
Liquidity and Capital Resources
During 1999, the Company provided $8.7 million in cash from operations
compared to cash used in operations of $8.8 million during 1998. The 1998 use
of cash was due primarily to the purchase of additional reinsurance during
1998.
On July 16, 1999, Chandler USA completed a public offering of $24 million
principal amount of senior debentures with a maturity date of July 16, 2014.
The debentures were priced at $1,000 each with an interest rate of 8.75% and
are redeemable by Chandler USA on or after July 16, 2009 without penalty or
premium. The proceeds to Chandler USA before expenses but after the
underwriter's discount were $23.16 million. The proceeds of the offering were
used to repay existing bank debt, to repay amounts owed by Chandler USA to its
parent Chandler Insurance (Barbados), Ltd. (which is a subsidiary of the
Company), and for general corporate purposes.
Book value per share was $15.45 at December 31, 1999 based on 3,285,408
shares (after giving effect to 1,142,625 shares rescinded through litigation
and 524,475 shares that were held by a subsidiary of the Company and were
transferred to the Company and cancelled in December 1999). Book value per
share was $13.05 at December 31, 1998 based on 4,757,108 shares (after giving
effect to 1,660,125 shares rescinded through litigation, 544,475 shares that
were held by a subsidiary of the Company and 20,000 shares to be issued).
Cautionary Statement
Some of the statements made in this News Release, as well as statements
made by the Company in periodic press releases, oral statements made by
the Company's officials to analysts and shareholders in the course of
presentations about the Company and conference calls following earnings
releases, constitute "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. Such
factors include, among other things, (i) general economic and business
conditions; (ii) interest rate changes; (iii) competition and regulatory
environment in which the Company operates; (iv) claims frequency; (v) claims
severity; (vi) the number of new and renewal policy applications submitted by
the Company's agents; (vii) the ability of the Company to obtain adequate
reinsurance in amounts and at rates that will not adversely affect its
competitive position; (viii) NAICO's ability to maintain favorable insurance
company ratings; (ix) the ability of the Company and its third party
providers, agents and reinsurers to adequately address year 2000 issues; and
(x) other factors such as the ongoing litigation matters involving a
significant concentration of ownership of the Company's common stock.
For further information on Chandler Insurance toll-free via fax, dial
800-PRO-INFO, follow the voice menu prompts and enter the company code 032 on
any touch tone phone or visit the Chandler page on FRB's web site at
http://www.frbinc.com .
CHANDLER INSURANCE COMPANY, LTD
Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands except per share data)
For the three months
ended December 31, %
1999 1998 Change
Premiums and other revenues
Direct premiums written and assumed $44,597 $30,712 45%
Reinsurance premiums ceded 9,211 (24,664) -137%
Net premiums written and assumed 53,808 6,048 790%
Decrease (increase) in unearned premiums (9,540) 12,543 -176%
Net premiums earned 44,268 18,591 138%
Interest income, net 1,523 1,484 3%
Realized investment gains, net - 515 -
Fee for rescinded reinsurance treaties 10,000 - -
Commissions, fees and other income 368 405 -9%
Total premiums and other revenues 56,159 20,995 167%
Operating costs and expenses
Losses and loss adjustment expenses 35,296 11,897 197%
Policy acquisition costs 12,519 3,981 214%
General and administrative expenses 3,019 3,153 -4%
Interest expense 576 249 131%
Litigation expenses, net 450 416 8%
Total operating costs and expenses 51,860 19,696 163%
Income before income taxes 4,299 1,299 231%
Federal income tax provision
of consolidated U.S. subsidiaries (1,195) (467) 156%
Net income $3,104 $832 273%
Basic earnings per common share $0.51 $0.13 292%
Diluted earnings per common share $0.51 $0.13 292%
Basic weighted average common shares
outstanding 6,070 6,417 -5%
Diluted weighted average common shares
outstanding 6,086 6,430 -5%
CHANDLER INSURANCE COMPANY, LTD
Consolidated Statements of Operations
(Audited)
(Amounts in thousands except per share data)
For the year
ended December 31, %
1999 1998 Change
Premiums and other revenue
Direct premiums written and assumed $169,635 $134,329 26%
Reinsurance premiums ceded (41,698) (68,793) -39%
Net premiums written and assumed 127,937 65,536 95%
Decrease (increase) in unearned
premiums (19,610) 4,528 -533%
Net premiums earned 108,327 70,064 55%
Interest income, net 5,594 6,467 -13%
Realized investment gains, net. 55 1,163 -95%
Fee for rescinded reinsurance treaties 10,000 - -
Commissions, fees and other income 1,730 1,952 -11%
Total premiums and other revenues 125,706 79,646 58%
Operating costs and expenses
Losses and loss adjustment expenses 79,816 47,879 67%
Policy acquisition costs 28,681 17,033 68%
General and administrative expenses 12,029 12,710 -5%
Interest expense 1,531 936 64%
Litigation expenses, net 1,133 (2,707) 142%
Total operating costs and expenses 123,190 75,851 62%
Income before income taxes 2,516 3,795 -34%
Federal income tax provision
of consolidated U.S. subsidiaries (365) (353) 3%
Net income $2,151 $3,442 -38%
Basic earnings per common share $0.34 $0.54 -37%
Diluted earnings per common share $0.34 $0.53 -36%
Basic weighted average common shares
outstanding 6,330 6,429 -2%
Diluted weighted average common shares
outstanding 6,347 6,438 -1%
CHANDLER INSURANCE COMPANY, LTD
Consolidated Balance Sheets
(Audited)
(Amounts in thousands except share amounts)
December 31, December 31,
1999 1998
Assets
Investments
Fixed maturities available for sale,
at fair value $108,709 $109,055
Fixed maturities held to
maturity, at amortized cost
(fair value $1,039 and $1,332 in 1999
and 1998, respectively) 984 1,183
Equity securities available for sale,
at fair value 306 191
Total investments 109,999 110,429
Cash and cash equivalents 8,456 10,383
Premiums receivable, less allowance for
non-collection of $263 and $200 at 1999
and 1998, respectively 47,721 28,479
Reinsurance recoverable on paid losses,
less allowance for non-collection of
$275 at 1999 and 1998 3,281 2,760
Reinsurance recoverable on unpaid losses,
less allowance for non-collection of
$302 and $330 at 1999 and 1998,
respectively 37,539 28,970
Prepaid reinsurance premiums 19,960 22,448
Deferred policy acquisition costs 6,488 2,381
Property and equipment, net 10,765 8,124
Other assets 16,912 13,253
Licenses, net 4,044 4,194
Excess of cost over net assets
acquired, net 3,955 4,604
Total assets $269,120 $236,025
Liabilities and Shareholders' Equity
Liabilities
Unpaid losses and loss adjustment expenses $98,460 $80,909
Unearned premiums 67,769 50,647
Policyholder deposits 5,135 4,936
Notes payable - 9,410
Accrued taxes and other payables 6,796 3,869
Premiums payable 7,312 10,961
Litigation liabilities 8,905 13,228
Debentures 24,000 -
Total liabilities 218,377 173,960
Shareholders' equity
Common stock, $1.67 par
value, 10,000,000 shares
authorized, 4,428,033 and
6,941,708 shares issued in
1999 and 1998, respectively 7,395 11,593
Paid-in surplus 21,380 34,983
Common stock to be issued
(20,000 shares in 1998) - 125
Capital redemption reserve 947 947
Retained earnings 30,479 28,328
Less: Stock held by subsidiary, at cost
(544,475 shares in 1998) - (2,905)
Less: Stock rescinded through litigation
(1,142,625 and 1,660,125 shares in 1999
and 1998, respectively) (6,883) (11,799)
Accumulated other comprehensive income:
Unrealized gain (loss) on investments
available for sale, net of deferred
income taxes (2,575) 793
Total shareholders' equity 50,743 62,065
Total liabilities and
shareholders' equity $269,120 $236,025
SOURCE Chandler Insurance Company
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Related links:
http://www.frbinc.com
CONTACT:
Steve Butler, V.P. Administration,
345-949-8177, or Mark Paden, Exec. V.P. & CFO, 405-258-4228, both
of Chandler Insurance Company, Ltd., General Info., Mike Arneth,
312-640-6734, e-mail, marneth@frb.bsmg.com, Investors-Media, Paul
Scheeler, 312-640-6742, e-mail, pscheele@frb.bsmg.com, both of
The Financial Relations Board
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