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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): FEBRUARY 12, 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.)
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ONE AMERICAN INDEMNITY PLAZA
GALVESTON, TEXAS 77550
(Address of Principal Executive Offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (409) 766-4600
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Exhibit Index Appears on Page 4
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ITEM 5. OTHER EVENTS.
On February 12, 1998, American Indemnity Financial Corporation, a
Delaware corporation (the "Company"), announced a loss for the quarter and year
ended December 31, 1997, and a suspension of cash dividends. A copy of the
press release announcing the Company's loss and suspension of cash dividends 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 February 12, 1998,
announcing the Company's loss for the quarter and year
ended December 31, 1997, and a suspension of cash
dividends.
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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: February 12, 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 February 12, 1998, announcing
the Company's loss for the quarter and year ended December 31,
1997, and a suspension of cash dividends.
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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
ANNOUNCES FOURTH QUARTER AND YEAR-END 1997 LOSS
AND SUSPENSION OF CASH DIVIDENDS
GALVESTON, TEXAS (February 12, 1998) - - American Indemnity Financial
Corporation, (NASDAQ-AIFC) today announced a loss for the fourth quarter and
year of 1997, on a preliminary and unaudited basis, and the suspension of
regular quarterly cash dividends to stockholders.
For the fourth quarter ended December 31, 1997, the company reported a
net loss of $6,347,304 or $3.23 per share, compared with net income of
$1,352,207 or 69 cents per share for the fourth quarter ended December 31,
1996.
For the year ended December 31, 1997, the company reported a net loss
of $5,881,174 or $3.00 per share, compared with net income of $1,947,953 or
$1.00 per share for the year ended December 31, 1996.
Net Income of the company, for the fourth quarter and year of 1997,
were reduced by approximately $8,400,000 resulting primarily from an increase
in the company's loss reserves of $7,000,000 and a decrease in the company's
deferred tax asset of approximately $1,400,000.
The company's loss reserves were reviewed subsequent to year-end by
the company's independent actuary. Based on this analysis, the company
strengthened its reserves to a level deemed appropriate in view of unexpected
development in losses and loss adjustment expenses in several major lines. The
deferred tax asset was decreased by the company as a result of its revised
projections of future taxable income.
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It is not anticipated that dividends to stockholders will resume
within the foreseeable future. Future dividends, if any, will be dependent upon
future favorable operating results of the company.
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, Texas.
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 forward-looking statements may include, but are not limited
to, future revenues, earnings, margins, costs, interest rates, market trends in
the insurance industry, inflation and various economic and business trends.
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, but not limited to, catastrophe events, domestic economic
activity and inflation, the company's successful execution of internal
operating plans and the factors that are disclosed in conjunction with the
forward-looking statements included herein and in other public filings and
releases by the company.
(Comparative Table Attached)
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AMERICAN INDEMNITY FINANCIAL CORPORATION
Consolidated Financial Highlights (Unaudited)
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Three Months Ended December 31,
1997 1996
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Net premiums written $ 12,246,999 $ 16,290,161
Premiums earned 15,466,438 16,793,763
Net investment income 1,113,263 1,179,980
Realized investment gains 845,132 8,958
Net income (loss) (6,347,304) 1,352,207
Earnings per share summary:
Net income (loss) $ (3.23) 69 cents
Weighted average shares outstanding 1,962,410 1,950,810
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Years Ended December 31,
1997 1996
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Net premiums written $ 61,488,103 $ 68,862,557
Premiums earned 64,052,155 66,961,281
Net investment income 4,367,807 4,591,651
Realized investment gains 1,481,695 657,875
Net income (loss) (5,881,174) 1,947,953
Earnings per share summary:
Net income (loss) $ (3.00) $ 1.00
Weighted average shares outstanding 1,961,602 1,948,710
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