SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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 29, 1997
ACCEPTANCE INSURANCE COMPANIES INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware 1-7461 31-0742926
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
222 S. 15th Street, Suite 600 North, Omaha, Nebraska 68102
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (402) 344-8800
(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events.
On July 29, 1997, Acceptance Insurance Companies Inc. (the "Company") announced
its second quarter financial results for 1997. A copy of the press release
noticing such results is attached hereto as Exhibit 20.1 and is incorporated
herein by reference.
Item 7. Exhibits.
20.1 Press Release, dated July 29, 1997, noticing second quarter financial
results of the Company.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
ACCEPTANCE INSURANCE COMPANIES INC.
Dated: July 29, 1997 By: /s/ Kenneth C. Coon
-------------------------------
Name: Kenneth C. Coon
Title: Chairman and Chief Executive Officer
Exhibit 20.1
ACCEPTANCE INSURANCE EARNINGS UP 40%
Omaha, NE, July 29, 1997
Acceptance Insurance Companies Inc. (NYSE:AIF) reported a 40% increase in
net income for the three months ended June 30, 1997 to $4.2 million or $0.28 per
share versus $3.0 million or $0.20 per share for the comparable period in 1996.
Premiums earned were $72.9 million for the current quarter, a 5% decrease from
$76.9 million for the same quarter in the prior year. Net investment income
increased 9% to $8.8 million from $8.1 million in the prior year. The combined
ratio of the Company improved to 101.5% in the 1997 quarter from 102.9% in the
1996 period.
Net income for the six months ended June 30, 1997 increased 9% to $8.2
million or $0.54 per share from $7.5 million or $0.50 per share for the
comparable period in 1996. Premiums earned for the six months were $144.0
million in 1997 versus $144.4 million in 1996. Net investment income increased
6% to $16.6 million in the 1997 period from $15.8 million in 1996. The Company's
combined ratio for both periods was 101.3%.
Acceptance Insurance is an A- rated property and casualty insurance company
concentrating in writing specialty coverages throughout the United States not
generally emphasized by standard insurance carriers. The Company's insurance
operations are conducted through its six insurance subsidiaries and two
insurance agencies. The Company selects underwriting specialties within the
property and casualty industry that provide a diversified portfolio of products,
with the goal of producing underwriting results better than the industry
average.
Contact: William J. Gerber
Vice President
(402) 344-8800
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ACCEPTANCE INSURANCE COMPANIES INC.
for the three months and six months ended June 30, 1997 and 1996
(in thousands, except per share data)
Three Months Six Months
--------------------------------------- ---------------------------------------
1997 1996 1997 1996
--------------- ------------------ ----------------- ----------------
<S> <C> <C> <C> <C>
Gross premiums written $145,827 $145,051 $271,172 $268,780
Ceded premiums (73,952) (49,727) (127,982) (102,622)
--------------- ------------------ ----------------- ----------------
Net premiums written 71,875 95,324 143,190 166,158
=============== ================== ================= ================
Revenues:
Insurance premiums earned 72,944 76,896 144,006 144,400
Net investment income 6,791 6,528 13,311 12,992
Net realized capital gains 2,020 1,586 3,331 2,767
--------------- ------------------ ----------------- ----------------
81,755 85,010 160,648 160,159
--------------- ------------------ ----------------- ----------------
Costs and expenses:
Cost of revenues:
Insurance losses and loss adjustment
expenses 52,588 55,239 102,395 101,122
Insurance underwriting expenses 21,459 23,868 43,503 45,142
General and administrative expenses 573 528 1,097 1,063
--------------- ------------------ ----------------- ----------------
74,620 79,635 146,995 147,327
--------------- ------------------ ----------------- ----------------
Operating profit 7,135 5,375 13,653 12,832
--------------- ------------------ ----------------- ----------------
Other income (expense):
Interest expense (1,247) (1,242) (2,404) (2,495)
Share of net loss of investee (63) (53) (117) (117)
Other, net (4) (35) 12 121
--------------- ------------------ ----------------- ----------------
(1,314) (1,330) (2,509) (2,491)
--------------- ------------------ ----------------- ----------------
Income before income taxes 5,821 4,045 11,144 10,341
Income tax expense 1,579 1,020 2,988 2,838
--------------- ------------------ ----------------- ----------------
Net income $4,242 3,025 8,156 7,503
=============== ================== ================= ================
Net income per share:
Primary $ .28 $ .20 $ .54 $ .50
=============== ================== ================= ================
Fully diluted $ .27 $ .20 $ .53 $ .49
=============== ================== ================= ================
Shares:
Primary 15,238 15,071 15,228 15,037
Fully diluted 15,541 15,337 15,510 15,322
Ratio - GAAP
Loss & LAE 72.1% 71.8% 71.1% 70.0%
Underwriting 29.4% 31.1% 30.2% 31.3%
--------------- ------------------ ----------------- ----------------
Combined 101.5% 102.9% 101.3% 101.3%
--------------- ------------------ ----------------- ----------------
June 30, June 30,
1997 1996
------------------ -----------------
Total Investments $459,443 $385,391
Net Reserves for Losses and LAE 257,693 219,640
Total Capital 220,770 182,413
Book Value per Share $ 14.66 $ 12.25
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