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):
August 8, 2000
ACCEPTANCE INSURANCE COMPANIES INC.
(Exact name of registrant as specified in its charter)
Delaware 1-7461 31-0742926
(State of Incorporation) (Commission File Number)(IRS Employer Identification
Number)
222 S. 15th Street, Suite 600 North
Omaha, Nebraska 68102
(Address of principal executive offices) (Zip Code)
(402) 344-8800
(Registrant's telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
(a) The registrant issued the following press release on
August 8, 2000:
For Immediate Release
ACCEPTANCE INSURANCE COMPANIES INC.
ANNOUNCE SECOND QUARTER RESULTS
(Omaha, Nebraska, August 8, 2000). Acceptance Insurance Companies
Inc. (NYSE: AIF) announced today that for the three months ended June 30, 2000
the Company had a net after-tax loss of $520,000, or $0.04 per share. For the
six months ended June 30, the net after-tax loss was $2.4 million, or $0.17 per
share. This compares with net after-tax income of $3.9 million, or $0.27 per
share for the three months ended June 30, 1999, and $6.9 million, or $0.48 per
share for the six months ended June 30, 1999.
The Company also announced that it had received the results of an
independent actuarial study completed as of June 30, 2000, and that the study
confirmed the Company's recorded reserves for reported and unreported claims
remained above the consulting actuary's point estimate and within their
recommended range. In addition, the Company said underwriting results for its
continuing property and casualty business improved during the three months
ended June 30, 2000 in comparison with the three months ended March 31, 2000.
Acceptance CEO John Martin said, "Overall our continuing property and
casualty business improved in the second quarter, and we also are pleased by
the independent actuarial study reaffirming that our reserves remain above the
actuary's point estimate. We expect the costs being incurred on the
discontinued property and casualty business to diminish as a result of last
December's strategic decisions."
Martin added, "During the second quarter, the Agricultural Risk
Protection Act of 2000 became law. This far-reaching legislation strengthens
the crop insurance safety net for farmers and encourages creation of new risk
management alternatives for all agricultural producers. We are working hard to
apply the new directions Congress provided, and to remain the most innovative
Company in our industry."
Acceptance Insurance Companies Inc. is an insurance holding Company
providing specialized crop, property and casualty insurance products throughout
the United States. American Agrisurance, the Company's wholly owned crop
insurance marketing subsidiary, is a widely recognized leader in the crop
insurance industry.
The Company will hold a conference call for interested parties at 9:30
a.m. CDT, Tuesday, August 8, 2000. The Company's conference call may be
accessed at 212 231 6019 five to ten minutes before the call begins. The
conference call also will be available on PostView from 11:30 a.m. CDT,
August 8 to 11:30 a.m. CDT, August 9. To access PostView, dial 800 633 8284
and enter reservation 15889510.
This release includes forward-looking statements with respect to the
Company's underwriting intentions and operating results of the Company's
discontinued property and casualty business. Such forward-looking statements
are subject to inherent risks and uncertainties that may cause actual results
to differ materially from those contemplated by such forward-looking
statements, including factors noted in the Company's Form 10K for the year
ended December 31, 1999, which are incorporated herein by reference.
Contacts:
John E. Martin
President and Chief Executive Officer
800 228 7217
J. Michael Gottschalk
General Counsel and Secretary
800 228 7217
<PAGE>
ACCEPTANCE INSURANCE COMPANIES INC.
for the three months and six months ended June 30, 2000 and 1999
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Six Months
______________________________ ______________________________
<S> <C> <C> <C> <C>
2000 1999 2000 1999
___________ ___________ __________ __________
Gross premiums written $ 146,340 $ 166,867 $ 262,386 $ 292,981
Ceded premiums written (121,215) (109,886) (198,479) (184,948)
___________ ___________ __________ __________
Net premiums written $ 25,125 $ 56,981 $ 63,907 $ 108,033
=========== =========== ========== ==========
Revenues:
Insurance premiums earned 41,912 58,001 94,308 111,572
Net investment income 6,056 6,394 11,474 12,638
Net realized capital gains 101 2,862 1,666 5,342
___________ __________ _________ __________
48,069 67,257 107,448 129,552
___________ __________ _________ __________
Costs and expenses:
Cost of revenues:
Insurance losses and loss adjustment
expenses 34,943 41,955 74,656 78,831
Insurance underwriting expenses 11,529 17,089 31,828 35,257
General and administrative expenses 671 637 1,160 1,190
___________ __________ _________ __________
47,143 59,681 107,644 115,278
___________ __________ _________ __________
Operating profit (loss) 926 7,576 (196) 14,274
___________ __________ _________ __________
Other income (expense):
Interest expense (2,168) (2,270) (4,336) (4,660)
Other, net -- 7 -- 21
___________ __________ _________ __________
(2,168) (2,263) (4,336) (4,639)
___________ __________ _________ __________
Income (loss) before income taxes and cumulative
effect of change in accounting principle (1,242) 5,313 (4,532) 9,635
Income tax expense (benefit) (722) 1,412 (2,122) 2,372
___________ __________ _________ __________
Income (loss) before cumulative effect of change
in accounting principle (520) 3,901 (2,410) 7,263
Cumulative effect of change in accounting
principle -- -- -- 338
___________ __________ ___________ ___________
Net income (loss) $ (520) $ 3,901 $ (2,410) $ 6,925
=========== ========== =========== ===========
Income (loss) per share before cumulative effect of
change in accounting principle:
Basic $ (.04) $ .27 $ (.17) $ .51
============ ========== ========== ===========
Diluted $ (.04) $ .27 $ (.17) $ .51
============ ========== ========== ===========
Net income (loss) per share:
Basic $ (.04) $ .27 $ (.17) $ .49
============ ========== ========== ===========
Diluted $ (.04) $ .27 $ (.17) $ .48
============ ========== ========== ===========
Shares:
Basic 14,300 14,245 14,292 14,243
============ ========== ========== ===========
Diluted 14,300 14,295 14,292 14,318
============ ========== ========== ===========
Ratios - GAAP
Loss & LAE 83.4% 72.3% 79.2% 70.7%
Underwriting 27.5% 29.5% 33.7% 31.6%
____________ __________ _________ ___________
Combined 110.9% 101.8% 112.9% 102.3%
============ ========== ========= ===========
June 30, June 30,
2000 1999
___________ __________
Total Investments $ 386,352 $ 469,496
Net Reserves for Losses and LAE 260,038 260,836
Total Equity 180,427 237,140
Book Value per Share $ 12.61 $ 16.64
</TABLE>
<PAGE>
SIGNATURES
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.
By /s/ J. Michael Gottschalk
J. Michael Gottschalk, Chief Legal Officer,
General Counsel and Secretary
August 8, 2000
