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 11, 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)
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Item 5. Other Events.
(a) The registrant issued the following press release on
February 11, 2000:
Acceptance Insurance Companies Inc. Announces Unaudited Results
and Special Charges
(Omaha, Nebraska; February 11, 2000) Acceptance Insurance Companies
Inc. (NYSE: AIF) today announced a preliminary and unaudited estimated after
tax loss for the year ended December 31, 1999 of $36 million, or $2.52 per
share. The Company said these unaudited amounts include all operating results,
reserve adjustments and special and nonrecurring charges for 1999. Acceptance
will release its audited financial statements for 1999 on February 28, 2000,
and hold a conference call for interested parties on February 29.
Acceptance also announced that it recorded special and nonrecurring
charges for the three months ended December 31, 1999 in an after tax amount of
$9.4 million. In addition, while its federally reinsured crop business
remained profitable for the year, the Company said a change in the mix of that
business produced a higher than anticipated fourth quarter claim volume and
reduced its previous estimated underwriting gain by an after tax amount of
$5.7 million.
The special and nonrecurring charges relate primarily to previously
announced divestitures of various lines of property and casualty business.
They include severance costs, charges relating to discontinued software
development, reduction of certain deferred policy acquisition costs and an
increased allowance for doubtful accounts. Also included are charges
associated with the Company's recent and anticipated resolutions of disputes
with state regulatory authorities regarding its crop insurance business and the
evaluation of strategic and capital alternatives.
John E. Martin, President and Chief Executive Officer of Acceptance
commented, "The charges we have taken reflect recent reductions of our property
and casualty operations, the financial impact of redirecting resources to our
crop insurance business, and a thorough year end financial review. We now are
moving forward with implementation of our strategic plan."
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.
This release contains forward-looking statements with respect to the
Company's estimated after tax loss and anticipated resolutions of disputes with
state regulatory authorities. Such forward-looking statements are subject to
inherent risks and uncertainties that may cause actual results or events to
differ materially from those contemplated by such forward-looking statements.
Contacts
John E. Martin
President and Chief Executive Officer
Acceptance Insurance Companies Inc.
800 228 7217
J. Michael Gottschalk
General Counsel and Secretary
Acceptance Insurance Companies Inc.
800 228 7217
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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
February 11, 2000
