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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): JULY 28, 1998
AMERICAN INDEMNITY
FINANCIAL CORPORATION
(Exact name of registrant as specified in charter)
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DELAWARE 0-8636 510119643
(State of Incorporation) (Commission File No.) (I.R.S. Employer Identification No.)
ONE AMERICAN INDEMNITY PLAZA
GALVESTON, TEXAS 77550
(Address of Principal Executive Offices) (Zip Code)
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REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (409) 766-4600
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ITEM 5. OTHER EVENTS.
On July 28, 1998, American Indemnity Financial Corporation, a Delaware
corporation (the "Company"), announced a loss for the second quarter and six
months ended June 30, 1998, and the engagement of an investment banking firm to
act as financial advisor in developing strategic alternatives. A copy of the
press release announcing the Company's loss and the engagement of an investment
banking firm to act as financial advisor is filed as Exhibit 99.1 and is hereby
incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 - Press release of the Company dated July 28, 1998,
announcing the Company's loss for the second quarter and
six months ended June 30, 1998, and the engagement of an
investment banking firm to act as financial advisor.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AMERICAN INDEMNITY FINANCIAL
CORPORATION
Dated: July 28, 1998
/s/ PHILLIP E. APGAR
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Phillip E. Apgar
Vice President, Treasurer and
Chief Financial Officer
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INDEX TO EXHIBITS
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Number Exhibit
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99.1 Press release of the Company dated July 28, 1998, announcing the Company's loss for
the second quarter and six months ended June 30, 1998, and the engagement of an
investment banking firm to act as financial advisor.
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: Phillip E. Apgar
American Indemnity Financial Corporation
One American Indemnity Plaza
Galveston, Texas 77550
409/766-4612
AMERICAN INDEMNITY FINANCIAL CORPORATION
REPORTS SECOND QUARTER AND SIX MONTHS 1998 RESULTS
GALVESTON, TEXAS (July 28, 1998) - - American Indemnity Financial
Corporation, (NASDAQ-AIFC) today announced 1998 second quarter and six months
financial results on a preliminary and unaudited basis.
For the second quarter ended June 30, 1998, the company reported a net
loss of $2,377,013 or $1.21 per share, compared with net income of $387,907 or
20 cents per share for the second quarter ended June 30, 1997. Catastrophe
losses totaling approximately $1,800,000 and the increased frequency of
automobile and commercial package policy claims were the primary factors
adversely affecting second quarter results.
For the six months ended June 30, 1998, the company reported a net
loss of $4,190,060 or $2.14 per share, compared with net income of $129,074 or
7 cents per share for the six months ended June 30, 1997.
The company also reported that it has engaged Philo Smith & Co., Inc.,
an investment banking firm specializing in the insurance industry, to act as
financial advisor to the company and to provide advice and assistance to the
company in developing strategic alternatives.
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American Indemnity Financial Corporation is the parent corporation of
American Indemnity Company, American Fire and Indemnity Company, Texas General
Indemnity Company and American Computing Company, all of Galveston.
Certain statements made herein and in other public filings and
releases by the company contain "forward-looking" information (as defined in
the Private Securities Litigation Reform Act of 1995) that involve risk and
uncertainty. These include, but are not limited to, industry price competition
that has made it more difficult to attract and retain adequately priced
business; the frequency and severity of catastrophic events; changes in
interest rates, premium volumes or loss payment patterns; regulatory and
legislative changes; adequacy of loss and loss adjustment expense reserves in
view of actual claim development; and changes in general market or economic
conditions. Although the company believes that the expectations reflected in
such forward-looking statements are based upon reasonable assumptions, the
company can give no assurance that these expectations will be achieved. Actual
results and trends in the future may differ materially depending on a variety
of factors including those discussed herein and in the company's other public
filings and releases.
(Comparative Table Attached)
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AMERICAN INDEMNITY FINANCIAL CORPORATION
Consolidated Financial Highlights (Unaudited)
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THREE MONTHS ENDED JUNE 30,
1998 1997
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Net premiums written $ 16,436,358 $ 15,872,624
Premiums earned 15,787,024 15,736,393
Net investment income 1,262,439 1,100,207
Realized investment gains 970,092 270,919
Net income (loss) (2,377,013) 387,907
Earnings per share summary:
Net income (loss) $ (1.21) 20 cents
Weighted average shares outstanding 1,962,410 1,962,410
SIX MONTHS ENDED JUNE 30,
1998 1997
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Net premiums written $ 30,299,930 $ 32,281,252
Premiums earned 31,565,118 31,680,749
Net investment income 2,441,833 2,166,028
Realized investment gains 1,258,799 294,523
Net income (loss) (4,190,060) 129,074
Earnings per share summary:
Net income (loss) $ (2.14) 7 cents
Weighted average shares outstanding 1,962,410 1,960,910
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