The National Security Group, Inc. Releases Third Quarter Earnings
October 30 2008 - 4:00PM
Business Wire
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.
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