EXHIBIT 99
----------
EMC INSURANCE GROUP INC. REPORTS
2005 SECOND QUARTER RESULTS
Second Quarter 2005
Net Income Per Share - $0.38
Net Operating Income Per Share - $0.34
GAAP Combined Ratio - 103.9%
DES MOINES, Iowa (July 28, 2005) - EMC Insurance Group Inc.
(Nasdaq/NM:EMCI) today reported operating income of $0.34 per share for the
second quarter ended June 30, 2005 compared to operating income of $0.12 per
share for the second quarter of 2004(1). Operating income for the six months
ended June 30, 2005 was $1.08 per share compared to $0.82 per share for the
same period in 2004.
Net income, including realized investment gains/losses, was $5,161,000
($0.38 per share) for the second quarter of 2005 compared to $3,466,000
($0.30 per share) for the second quarter of 2004. Net income for the six
months ended June 30, 2005 was $15,663,000 ($1.15 per share) compared to
$11,815,000 ($1.02 per share) for the same period in 2004. Results for the
second quarter of 2004 include $2,558,000 ($1,663,000 or $0.14 per share
after tax) of realized gains associated with a bankruptcy payout award for
bonds issued by MCI Communications Corporation.
"The results reported for the first six months of 2005 are
encouraging," stated President and CEO Bruce G. Kelley. "The actions we took
in 2004 to strengthen our reserves and improve our book of business have
produced solid results for the first six months of 2005 and we look forward
to continued success in the second half of the year."
Premiums earned increased 24.1 percent to $104,202,000 for the three
months ended June 30, 2005 from $83,984,000 for the same period in 2004. For
the six months ended June 30, 2005, premiums earned increased 22.7 percent to
$205,496,000 from $167,443,000 for the same period in 2004. The majority of
these increases are attributed to a 6.5 percentage point increase in the
Company's aggregate participation interest in the EMC Insurance Companies
pooling arrangement that became effective January 1, 2005. As a result of
this increase, the Company's aggregate participation in the pooling
arrangement increased from 23.5 percent to 30.0 percent. The increase in
premiums earned also reflects the impact of rate increases that were
implemented in the property and casualty insurance business during 2004. On
an overall basis, rate competition increased moderately in the property and
casualty insurance marketplace during the first six months of 2005; however,
there have been indications of more intense rate competition in select
territories and lines of business and the Company expects market conditions
to remain competitive for the remainder of the year. The Company will
continue to implement rate increases in those lines of business and/or
territories where such action is warranted, but the overall level of these
rate increases is expected to be smaller than those implemented during 2004.
Investment income increased 48.6 percent to $10,201,000 for the three
months and 35.3 percent to $19,132,000 for the six months ended June 30, 2005
from $6,866,000 and $14,140,000 for the same periods in 2004. These
increases are primarily attributed to additional interest income earned on
$107,801,000 of cash received from Employers Mutual Casualty Company in the
first quarter of 2005 in connection with the change in the pooling
arrangement and the $34,890,000 of net proceeds received in October 2004 from
the Company's follow-on stock offering.
The Company experienced $2,051,000 ($1,333,000 or $0.10 per share after
tax) of adverse development on prior years' reserves during the second
quarter of 2005. For the second quarter of 2004, adverse development on
prior years' reserves totaled $5,997,000 ($3,898,000 or $0.34 per share after
tax) and included $2,940,000 ($1,910,000 or $0.17 per share after tax) of
bulk loss and settlement expense reserves. For the first six months of
2005, the Company had favorable development on prior years' reserves of
$3,836,000 ($2,493,000 or $0.18 per share after tax) compared to adverse
development of $2,207,000 ($1,435,000 or $0.12 per share after tax) for the
same period in 2004.
Catastrophe and storm losses declined to $5,980,000 ($0.29 per share
after tax) in the second quarter of 2005 from $7,197,000 ($0.40 per share
after tax) in the second quarter of 2004. For the first six months of 2005,
catastrophe and storm losses totaled $8,606,000 ($0.41 per share after tax)
compared to $8,212,000 ($0.46 per share after tax) for the same period in
2004.
The Company's GAAP combined ratio was 103.9 percent in the second
quarter of 2005 compared to 107.0 percent in the second quarter of 2004. For
the first six months of 2005, the GAAP combined ratio was 99.3 percent
compared to 100.4 percent for the same period in 2004.
At June 30, 2005, consolidated assets totaled $1.1 billion, including
$0.9 billion in the investment portfolio; stockholders' equity was $243.3
million; and net book value of the Company's stock was $17.88 per share, an
increase of 6.2 percent from $16.84 per share at December 31, 2004.
Operating results for the first six months of 2005 are in line with
expectations and management has reaffirmed its 2005 operating earnings
guidance of $2.15 to $2.40 per share.
The Company will host an earnings call in conjunction with today's
release. The teleconference will begin at 10:00 a.m. eastern daylight time,
July 28, 2005. Dial-in information for the call is toll-free 1-877-407-9205.
The event will be archived and available for digital replay through August 4,
2005. The replay access information is toll-free 1-877-660-6853; account
number 286; conference ID number 161277. A webcast of the teleconference
will be presented by Vcall and can be accessed at www.Vcall.com or from the
Company's investor relations page at www.emcinsurance.com. The archived
webcast will be available for one year. A transcript of the teleconference
will also be available on the Company's website shortly after the completion
of the teleconference.
EMC Insurance Group Inc., the publicly-held insurance holding company
of EMC Insurance Companies, owns subsidiaries with operations in property and
casualty insurance and reinsurance. EMC Insurance Companies is one of the
largest property and casualty entities in Iowa and among the top 60 insurance
entities nationwide. For more information, visit our website
www.emcinsurance.com.
The Private Securities Litigation Reform Act of 1995 provides issuers
the opportunity to make cautionary statements regarding forward-looking
statements. Accordingly, any forward-looking statement contained in this
report is based on management's current beliefs, assumptions and expectations
of the Company's future performance, taking into account all information
currently available to management. These beliefs, assumptions and
expectations can change as the result of many possible events or factors, not
all of which are known to management. If a change occurs, the Company's
business, financial condition, liquidity, results of operations, plans and
objectives may vary materially from those expressed in the forward-looking
statements. The risks and uncertainties that may affect the actual results
of the Company include, but are not limited to the following: catastrophic
events and the occurrence of significant severe weather conditions; the
adequacy of loss and settlement expense reserves; state and federal
legislation and regulations; changes in our industry, interest rates or the
performance of financial markets and the general economy; rating agency
actions and other risks and uncertainties inherent to the Company's business.
When the Company uses the words "believe", "expect", "anticipate",
"estimate", or similar expressions, it intends to identify forward-looking
statements. You should not place undue reliance on these forward-looking
statements.
(1)The Company uses a non-GAAP financial measure called "operating
income" that management believes is useful to investors because it
illustrates the performance of our normal, ongoing operations, which is
important in understanding and evaluating our financial condition and results
of operations. While this measure is consistent with measures utilized by
investors to evaluate performance, it is not a substitute for the U.S. GAAP
financial measure of net income. Therefore, the Company has provided a
reconciliation of this non-GAAP financial measure to the U.S. GAAP financial
measure of net income in the Consolidated Statements of Income schedule
contained in this release. Management also uses non-GAAP financial measures
for goal setting, determining employee and senior management awards and
compensation, and evaluating performance.
CONSOLIDATED STATEMENT OF INCOME - UNAUDITED
Property
Quarter Ended and Casualty Parent
June 30,2005 Insurance Reinsurance Company Consolidated
- -----------------------------------------------------------------------------
Revenues:
Premiums earned ..... $ 81,177,327 $ 23,024,882 $ - $ 104,202,209
Investment income,
net ............... 7,488,089 2,665,174 47,274 10,200,537
Other income ........ 147,574 - - 147,574
------------ ------------ ------------ --------------
88,812,990 25,690,056 47,274 114,550,320
------------ ------------ ------------ --------------
Losses and expenses:
Losses and settlement
expenses .......... 59,118,497 14,425,179 - 73,543,676
Dividends to
policyholders ..... 791,213 - - 791,213
Amortization of
deferred policy
acquisition costs 18,480,589 5,240,661 - 23,721,250
Other underwriting
expenses .......... 8,522,304 1,669,381 - 10,191,685
Interest expense .... 193,125 84,975 - 278,100
Other expenses ...... 247,520 - 260,870 508,390
------------ ------------ ------------ --------------
87,353,248 21,420,196 260,870 109,034,314
------------ ------------ ------------ --------------
Operating income
(loss) before
income taxes .... 1,459,742 4,269,860 (213,596) 5,516,006
------------ ------------ ------------ --------------
Realized investment
gains ............... 811,547 21,690 - 833,237
------------ ------------ ------------ --------------
Income (loss)
before income
taxes ........... 2,271,289 4,291,550 (213,596) 6,349,243
------------ ------------ ------------ --------------
Income tax expense
(benefit):
Current ........... 661,538 1,220,664 (74,758) 1,807,444
Deferred .......... (550,715) (68,144) - (618,859)
------------ ------------ ------------ --------------
110,823 1,152,520 (74,758) 1,188,585
------------ ------------ ------------ --------------
Net income (loss) $ 2,160,466 $ 3,139,030 $ (138,838)$ 5,160,658
============ ============ ============ ==============
Average shares
outstanding ......... 13,602,194
Per Share Data:
- ---------------
Net income per share
- basic and diluted $ 0.16 $ 0.23 $ (0.01)$ 0.38
(Increase) decrease
in provision for
insured events of
prior years (after
tax) .............. $ (0.12)$ 0.02 $ - $ (0.10)
Catastrophe and storm
losses (after tax) $ (0.28)$ (0.01)$ - $ (0.29)
Dividends per share $ 0.15
Other Information of
Interest:
- --------------------
Increase (decrease)
in provision for
insured events of
prior years ....... $ 2,490,160 $ (439,415)$ - $ 2,050,745
Catastrophe and storm
losses ............ $ 5,776,404 $ 204,086 $ - $ 5,980,490
GAAP Combined Ratio:
Loss ratio ........ 72.8% 62.7% - 70.6%
Expense ratio ..... 34.3% 30.0% - 33.3%
------------ ------------ ------------ --------------
107.1% 92.7% - 103.9%
============ ============ ============ ==============
Property
Quarter Ended and Casualty Parent
June 30, 2004 Insurance Reinsurance Company Consolidated
- -----------------------------------------------------------------------------
Revenues:
Premiums earned ..... $ 62,209,091 $ 21,775,196 $ - $ 83,984,287
Investment income,
net ............... 4,554,410 2,297,481 13,772 6,865,663
Other income ........ 265,112 - - 265,112
------------ ------------ ------------ --------------
67,028,613 24,072,677 13,772 91,115,062
------------ ------------ ------------ --------------
Losses and expenses:
Losses and settlement
expenses .......... 48,475,198 15,172,251 - 63,647,449
Dividends to
policyholders ..... 1,095,581 - - 1,095,581
Amortization of
deferred policy
acquisition costs 13,354,823 4,545,473 - 17,900,296
Other underwriting
expenses .......... 7,344,098 (164,550) - 7,179,548
Interest expense .... 193,125 84,975 - 278,100
Other expenses ...... 228,066 - 191,151 419,217
------------ ------------ ------------ --------------
70,690,891 19,638,149 191,151 90,520,191
------------ ------------ ------------ --------------
Operating income
(loss) before
income taxes .... (3,662,278) 4,434,528 (177,379) 594,871
------------ ------------ ------------ --------------
Realized investment
gains ............... 2,452,066 729,042 - 3,181,108
------------ ------------ ------------ --------------
Income (loss)
before income
taxes ........... (1,210,212) 5,163,570 (177,379) 3,775,979
------------ ------------ ------------ --------------
Income tax expense
(benefit):
Current ........... (1,153,952) 1,717,095 (60,889) 502,254
Deferred .......... 7,927 (198,944) (1,194) (192,211)
------------ ------------ ------------ --------------
(1,146,025) 1,518,151 (62,083) 310,043
------------ ------------ ------------ --------------
Net income (loss) $ (64,187)$ 3,645,419 $ (115,296)$ 3,465,936
============ ============ ============ ==============
Average shares
outstanding ......... 11,558,120
Per Share Data:
- ---------------
Net income per share
- basic and diluted $ (0.01)$ 0.32 $ (0.01)$ 0.30
(Increase) decrease
in provision for
insured events of
prior years (after
tax) .............. $ (0.40)$ 0.06 $ - $ (0.34)
Catastrophe and storm
losses (after tax) $ (0.39)$ (0.01)$ - $ (0.40)
Dividends per share $ 0.15
Other Information of
Interest:
- --------------------
Increase (decrease)
in provision for
insured events of
prior years ....... $ 7,114,003 $ (1,117,152)$ - $ 5,996,851
Catastrophe and storm
losses ............ $ 7,031,774 $ 165,198 $ - $ 7,196,972
GAAP Combined Ratio:
Loss ratio ........ 77.9% 69.7% - 75.8%
Expense ratio ..... 35.1% 20.1% - 31.2%
------------ ------------ ------------ --------------
113.0% 89.8% - 107.0%
============ ============ ============ ==============
Property
Six Months Ended and Casualty Parent
June 30, 2005 Insurance Reinsurance Company Consolidated
- -----------------------------------------------------------------------------
Revenues:
Premiums earned ..... $160,895,599 $ 44,600,680 $ - $ 205,496,279
Investment income,
net ............... 13,829,570 5,160,451 142,226 19,132,247
Other income ........ 243,670 - - 243,670
------------ ------------ ------------ --------------
174,968,839 49,761,131 142,226 224,872,196
------------ ------------ ------------ --------------
Losses and expenses:
Losses and settlement
expenses .......... 106,249,408 30,137,276 - 136,386,684
Dividends to
policyholders ..... 2,342,072 - - 2,342,072
Amortization of
deferred policy
acquisition costs 36,695,579 9,512,382 - 46,207,961
Other underwriting
expenses .......... 16,139,342 2,952,419 - 19,091,761
Interest expense .... 386,250 169,950 - 556,200
Other expenses ...... 418,849 - 495,671 914,520
------------ ------------ ------------ --------------
162,231,500 42,772,027 495,671 205,499,198
------------ ------------ ------------ --------------
Operating income
(loss) before
income taxes .... 12,737,339 6,989,104 (353,445) 19,372,998
------------ ------------ ------------ --------------
Realized investment
gains (losses) ...... 1,678,661 (116,982) - 1,561,679
------------ ------------ ------------ --------------
Income (loss)
before income
taxes ........... 14,416,000 6,872,122 (353,445) 20,934,677
------------ ------------ ------------ --------------
Income tax expense
(benefit):
Current ........... 6,087,704 1,341,972 (143,839) 7,285,837
Deferred .......... (2,406,737) 373,337 18,986 (2,014,414)
------------ ------------ ------------ --------------
3,680,967 1,715,309 (124,853) 5,271,423
------------ ------------ ------------ --------------
Net income (loss) $ 10,735,033 $ 5,156,813 $ (228,592)$ 15,663,254
============ ============ ============ ==============
Average shares
outstanding ......... 13,593,652
Per Share Data:
- ---------------
Net income per share
- basic and diluted $ 0.79 $ 0.38 $ (0.02)$ 1.15
(Increase) decrease
in provision for
insured events of
prior years (after
tax) .............. $ 0.19 $ (0.01)$ - $ 0.18
Catastrophe and storm
losses (after tax) $ (0.36)$ (0.05)$ - $ (0.41)
Dividends per share $ 0.30
Book value per share $ 17.88
Effective tax rate .... 25.2%
Net income as a
percent of beg. SH
equity (annualized) 13.7%
Other Information of
Interest:
- --------------------
Increase (decrease)
in provision for
insured events of
prior years ....... $ (4,102,933)$ 267,355 $ - $ (3,835,578)
Catastrophe and storm
losses ............ $ 7,540,121 $ 1,065,671 $ - $ 8,605,792
GAAP Combined Ratio:
Loss ratio ........ 66.0% 67.6% - 66.4%
Expense ratio ..... 34.3% 27.9% - 32.9%
------------ ------------ ------------ --------------
100.3% 95.5% - 99.3%
============ ============ ============ ==============
Property
Six Months Ended and Casualty Parent
June 30, 2004 Insurance Reinsurance Company Consolidated
- -----------------------------------------------------------------------------
Revenues:
Premiums earned ..... $123,569,319 $ 43,873,250 $ - $ 167,442,569
Investment income,
net ............... 9,520,781 4,592,964 25,895 14,139,640
Other income ........ 341,591 - - 341,591
------------ ------------ ------------ --------------
133,431,691 48,466,214 25,895 181,923,800
------------ ------------ ------------ --------------
Losses and expenses:
Losses and settlement
expenses .......... 84,870,340 29,738,286 - 114,608,626
Dividends to
policyholders ..... 1,863,623 - - 1,863,623
Amortization of
deferred policy
acquisition costs 27,194,581 9,125,242 - 36,319,823
Other underwriting
expenses .......... 13,661,035 1,613,834 - 15,274,869
Interest expense .... 386,250 169,950 - 556,200
Other expenses ...... 408,463 - 334,492 742,955
------------ ------------ ------------ --------------
128,384,292 40,647,312 334,492 169,366,096
------------ ------------ ------------ --------------
Operating income
(loss) before
income taxes .... 5,047,399 7,818,902 (308,597) 12,557,704
------------ ------------ ------------ --------------
Realized investment
gains ............... 2,742,033 839,602 - 3,581,635
------------ ------------ ------------ --------------
Income (loss)
before income
taxes ........... 7,789,432 8,658,504 (308,597) 16,139,339
------------ ------------ ------------ --------------
Income tax expense
(benefit):
Current ........... 2,121,530 2,504,246 (313,038) 4,312,738
Deferred .......... (260,946) 67,486 205,030 11,570
------------ ------------ ------------ --------------
1,860,584 2,571,732 (108,008) 4,324,308
------------ ------------ ------------ --------------
Net income (loss) $ 5,928,848 $ 6,086,772 $ (200,589)$ 11,815,031
============ ============ ============ ==============
Average shares
outstanding ......... 11,540,381
Per Share Data:
- ---------------
Net income per share
- basic and diluted $ 0.51 $ 0.53 $ (0.02)$ 1.02
(Increase) decrease
in provision for
insured events of
prior years (after
tax) .............. $ (0.20)$ 0.08 $ - $ (0.12)
Catastrophe and storm
losses (after tax) $ (0.44)$ (0.02)$ - $ (0.46)
Dividends per share $ 0.30
Book value per share $ 15.81
Effective tax rate .... 26.8%
Net income as a percent
of beg. SH equity
(annualized) ........ 13.1%
Other Information of
Interest:
- --------------------
Increase (decrease)
in provision for
insured events of
prior years ....... $ 3,689,100 $ (1,481,900)$ - $ 2,207,200
Catastrophe and storm
losses ............ $ 7,901,948 $ 309,741 $ - $ 8,211,689
GAAP Combined Ratio:
Loss ratio ........ 68.7% 67.8% - 68.4%
Expense ratio ..... 34.6% 24.5% - 32.0%
------------ ------------ ------------ --------------
103.3% 92.3% - 100.4%
============ ============ ============ ==============
NET WRITTEN PREMIUMS
Three months ended June 30, 2005
--------------------------------------------
Percent of
Increase/(Decrease)
Percent of Net in Net Written
Written Premiums Premiums
---------------- ------------------
Property and Casualty
Insurance
Commercial Lines:
Automobile .................. 18.4% (3.1%)
Liability ................... 17.0% 1.8%
Property .................... 15.1% 2.8%
Workers' Compensation ....... 13.9% (2.6%)
Other ....................... 1.9% 15.1%
--------
Total ..................... 66.3% 0.0%
Personal Lines:
Automobile .................. 7.0% (11.1%)
Property .................... 6.0% (3.2%)
Liability ................... 0.2% 2.3%
--------
Total ..................... 13.2% (7.5%)
Reinsurance .................... 20.5% (1.1%)
--------
Total ..................... 100.0%
========
Six months ended June 30, 2005
--------------------------------------------
Percent of
Increase/(Decrease)
Percent of Net in Net Written
Written Premiums (a) Premiums (a)
------------------ ------------------
Property and Casualty
Insurance
Commercial Lines:
Automobile .................. 18.4% (2.9%)
Liability ................... 17.0% 4.3%
Property .................... 14.5% 0.7%
Workers' Compensation ....... 14.0% (2.9%)
Other ....................... 1.8% 21.3%
--------
Total ..................... 65.7% 0.2%
Personal Lines:
Automobile .................. 7.4% (12.3%)
Property .................... 5.5% (4.2%)
Liability ................... 0.2% 4.5%
--------
Total ..................... 13.1% (8.9%)
Reinsurance .................... 21.2% (7.5%)
--------
Total ..................... 100.0%
========
(a) Excludes January 1, 2005 portfolio adjustment of $29,630,612 related to
the change in the Company's aggregate participation in the pooling
arrangement.
CONSOLIDATED BALANCE SHEETS - UNAUDITED
June 30, December 31,
2005 2004
-------------- ------------
ASSETS
Investments:
Fixed maturities:
Securities held-to-maturity, at amortized
cost (fair value $20,040,392 and
$16,908,726) ............................. $ 19,226,288 $ 15,895,607
Securities available-for-sale, at fair value
(amortized cost $652,649,086 and
$541,401,950) ............................. 678,614,386 565,000,931
Fixed maturity securities on loan:
Securities held-to-maturity, at amortized
cost (fair value $788,432 and
$13,684,880) ............................. 761,879 13,310,264
Securities available-for-sale, at fair value
(amortized cost $53,351,569 and
$54,389,046) ............................ 53,608,811 54,653,472
Equity securities available-for-sale, at fair
value (cost $61,183,374 and $59,589,434) ... 82,076,827 78,692,893
Other long-term investments, at cost ......... 5,706,817 5,550,093
Short-term investments, at cost .............. 59,124,225 46,238,853
-------------- ------------
Total investments ........................ 899,119,233 779,342,113
Balances resulting from related party
transactions with Employers Mutual:
Reinsurance receivables ................... 36,156,345 26,316,358
Prepaid reinsurance premiums .............. 4,658,650 3,682,676
Deferred policy acquisition costs ......... 34,134,673 27,940,583
Defined benefit retirement plan, prepaid
asset ................................... 2,232,820 2,684,463
Other assets .............................. 3,370,243 1,877,564
Indebtedness of related party ............. 7,712,226 -
Cash ........................................... 511,958 61,088
Accrued investment income ...................... 9,580,070 8,726,292
Accounts receivable (net of allowance for
uncollectible accounts of $0 and $0) ......... 213,304 216,836
Income taxes recoverable ....................... 2,526,626 3,399,485
Deferred income taxes .......................... 10,066,413 9,504,193
Goodwill, at cost less accumulated amortization
of $2,616,234 and $2,616,234 ................. 941,586 941,586
Securities lending collateral .................. 55,560,180 70,122,695
-------------- ------------
Total assets ............................ $1,066,784,327 $934,815,932
============== ============
LIABILITIES
Balances resulting from related party
transactions with Employers Mutual:
Losses and settlement expenses ........... $ 538,186,796 $429,677,302
Unearned premiums ........................ 160,647,881 131,589,365
Other policyholders' funds ............... 3,098,432 2,825,809
Surplus notes payable .................... 36,000,000 36,000,000
Indebtedness to related party ............ - 6,058,848
Employee retirement plans ................ 12,962,321 9,764,406
Other liabilities ........................ 16,999,267 20,304,475
Securities lending obligation .................. 55,560,180 70,122,695
-------------- ------------
Total liabilities ...................... 823,454,877 706,342,900
-------------- ------------
STOCKHOLDERS' EQUITY
Common stock, $1 par value,
authorized 20,000,000 shares;
issued and outstanding, 13,605,671 shares
in 2005 and 13,568,945 shares in 2004 ........ 13,605,671 13,568,945
Additional paid-in capital ..................... 104,142,392 103,467,293
Accumulated other comprehensive income ......... 30,625,397 27,928,463
Retained earnings .............................. 94,955,990 83,508,331
-------------- ------------
Total stockholders' equity ............... 243,329,450 228,473,032
-------------- ------------
Total liabilities and stockholders' equity $1,066,784,327 $934,815,932
============== ============
The Company had total cash and invested assets with a carrying value of
$899.6 million and $779.4 million as of June 30, 2005 and December 31, 2004,
respectively. The following table summarizes the Company's cash and invested
assets as of the dates indicated:
Percent of
($ in thousands) Amortized Total at Carrying
June 30, 2005 Cost Fair Value Fair Value Value
- ------------------- --------- ---------- ---------- --------
Fixed maturities,
held-to-maturity .... $ 19,988 $ 20,829 2.3% $ 19,988
Fixed maturities,
available-for-sale .. 706,001 732,223 81.3% 732,223
Equity securities,
available-for-sale .. 61,183 82,077 9.1% 82,077
Cash .................. 512 512 0.1% 512
Short-term investments 59,124 59,124 6.6% 59,124
Other long-term
investments ......... 5,707 5,707 0.6% 5,707
-------- -------- ----- --------
$852,515 $900,472 100.0% $899,631
======== ======== ===== ========
Percent of
($ in thousands) Amortized Total at Carrying
December 31, 2004 Cost Fair Value Fair Value Value
- ------------------- --------- ---------- ---------- --------
Fixed maturities,
held-to-maturity .... $ 29,206 $ 30,594 3.9% $ 29,206
Fixed maturities,
available-for-sale .. 595,791 619,654 79.4% 619,654
Equity securities,
available-for-sale .. 59,589 78,693 10.1% 78,693
Cash .................. 61 61 - 61
Short-term investments 46,239 46,239 5.9% 46,239
Other long-term
investments ......... 5,550 5,550 0.7% 5,550
-------- -------- ----- --------
$736,436 $780,791 100.0% $779,403
======== ======== ===== ========
The amortized cost and estimated fair values of fixed maturity and equity
securities at June 30, 2005 were as follows:
Held-To-Maturity
----------------------------------------------
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
($ in thousands) Cost Gains Losses Value
--------- ---------- ---------- ---------
U.S. treasury securities and
obligations of U.S.
government corporations
and agencies ............. $ 19,025 $ 756 $ - $ 19,781
Mortgage-backed securities 963 85 - 1,048
--------- ---------- ---------- ---------
Total securities
held-to-maturity ..... $ 19,988 $ 841 $ - $ 20,829
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Available-For-Sale
----------------------------------------------
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
($ in thousands) Cost Gains Losses Value
--------- ---------- ---------- ---------
U.S. treasury securities and
obligations of U.S.
government corporations
and agencies ............. $ 292,896 $ 855 $ 137 $ 293,614
Obligations of states and
political subdivisions ... 251,976 14,009 5 265,980
Mortgage-backed securities 10,409 645 - 11,054
Public utilities ........... 9,198 1,211 - 10,409
Debt securities issued by
foreign governments ...... 7,112 260 - 7,372
Corporate securities ....... 134,410 9,858 474 143,794
---------- ---------- ---------- ---------
Total fixed maturity
securities ........... 706,001 26,838 616 732,223
---------- ---------- ---------- ---------
Equity securities
Common stocks ............ 60,683 22,003 1,124 81,562
Non-redeemable preferred
stocks ................. 500 15 - 515
---------- ---------- ---------- ---------
Total equity securities .. 61,183 22,018 1,124 82,077
---------- ---------- ---------- ---------
Total securities
available-for-sale $ 767,184 $ 48,856 $ 1,740 $ 814,300
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