EXHIBIT 99.1
NEW YORK, NY, November 9, 2004 -- Alleghany Corporation (NYSE-Y) reported
a net loss in the third quarter of 2004 of $47.0 million, or $6.12 per share
(per share information throughout is presented on a diluted basis), compared
with net earnings of $74.9 million, or $9.79 per share, in the third quarter of
2003, John J. Burns, Jr., President and chief executive officer of Alleghany,
announced today. "We are pleased that our insurance subsidiaries remain
profitable on a year-to-date basis, despite record-setting catastrophe loss
activity in the 2004 third quarter, and that our common stockholders' equity per
share has increased 5% since the end of 2003" said Mr. Burns.
Net gains on investment transactions after tax (taxed at the federal
income tax rate) were $4.3 million, or $0.57 per share, in the 2004 third
quarter, compared with $50.6 million, or $6.62 per share, in the 2003 third
quarter. Third quarter 2004 net catastrophe losses were $97.8 million, or $12.75
per share, compared with net catastrophe losses of $10.9 million, or $1.43 per
share, in the 2003 third quarter. Third quarter 2004 net earnings excluding
gains on investment transactions after taxes (taxed at the federal income tax
rate) and net catastrophe losses were $46.5 million, or $6.06 per share,
compared with $35.2 million, or $4.60 per share in the corresponding 2003
period.
Three Months Ended September 30,
Per Share(1)
(in millions, except for per share and share
amounts) 2004 2003 2004 2003
- ------------------------------------------------- ------ ------ --------- ---------
Net (loss) earnings $(47.0) $ 74.9 $ (6.12) $ 9.79
Net gains on investment transactions (2) 4.3 50.6 0.57 6.62
Net catastrophe losses (3) (97.8) (10.9) (12.75) (1.43)
Net earnings, excluding net gains on investment
transactions (2) and net catastrophe losses (3) $ 46.5 $ 35.2 $ 6.06 $ 4.60
Average number of outstanding shares of common
stock (4) 7,675,313 7,617,920
- ----------
(1) Represents diluted earnings per share of common stock.
(2) After tax, taxed at the federal income tax rate.
(3) Net of reinsurance and tax at the federal income tax rate.
(4) Adjusted to reflect the dividend of common stock declared in March 2004.
In the first nine months of 2004, Alleghany's net earnings were $63.8
million, or $8.29 per
share, compared with $88.6 million, or $11.64 per share, in the first nine
months of 2003. Net gains on investment transactions after taxes (taxed at the
federal income tax rate) in the first nine months of 2004 were $28.7 million, or
$3.74 per share, compared with $53.8 million, or $7.06 per share in the
corresponding 2003 period. 2004 nine-month net catastrophe losses were $100.9
million, or $13.10 per share, compared with net catastrophe losses of $11.4
million, or $1.50 per share, in the first nine months of 2003. For the first
nine months of 2004, net earnings excluding gains on investment transactions
after taxes (taxed at the federal income tax rate) and net catastrophe losses
were $135.9 million, or $17.66 per share, compared with $46.2 million, or $6.07
per share in the corresponding 2003 period.
Nine Months Ended September 30,
Per Share(1)
(in millions, except for per share and share
amounts) 2004 2003 2004 2003
------- ------ ---------- ----------
Net (loss) earnings $ 63.8 $ 88.6 $ 8.29 $ 11.64
Net gains on investment transactions (2) 28.7 53.8 3.74 7.06
Net catastrophe losses (3) $(100.9) $(11.4) $ (13.10) $ (1.50)
Net earnings, excluding net gains on investment
transactions (2) and net catastrophe losses (3) $ 135.9 $ 46.2 $ 17.66 $ 6.07
Average number of outstanding shares of common
stock (4) 7,665,295 7,586,665
- ----------
(1) Represents diluted earnings per share of common stock.
(2) After tax, taxed at the federal income tax rate.
(3) Net of reinsurance and tax at the federal income tax rate.
(4) Adjusted to reflect the dividend of common stock declared in March 2004.
Alleghany's common stockholders' equity per share at September 30, 2004
was $215.48, a decrease from common stockholders equity per share of $218.32 as
of June 30, 2004, but an increase from common stockholders' equity per share of
$204.44 as of December 31, 2003 (all as adjusted for the stock dividend declared
in March 2004).
The comparative contributions to (losses) earnings before taxes made by
Alleghany's operating units Alleghany Insurance Holdings LLC ("AIHL," a holding
company for Alleghany's property and casualty insurance businesses, consisting
of RSUI Group, Inc. ("RSUI"), Capitol Transamerica Corporation ("CATA") and
Darwin Professional Underwriters, Inc. ("Darwin")), and World Minerals, Inc.
(industrial minerals business), as well as by corporate activities which include
parent company results and the results of miscellaneous subsidiaries, were as
follows (in millions):
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
------ ------ ------ ------
AIHL $(81.5) $ 75.0 $ 84.4 $ 82.6
World Minerals 6.0 6.9 16.8 18.3
Corporate activities (4.0) 25.9 (10.5) 27.2
------ ------ ------ ------
Total $(79.5) $107.8 $ 90.7 $128.1
====== ====== ====== ======
On a per-share, after-tax basis, the foregoing earnings (losses)
contributions may be broken down as follows:
THREE MONTHS ENDED SEPTEMBER 30,
World Corporate
AIHL Minerals activities Total
2004
Operating (loss) income * $ (7.36) $ 0.43 $ 0.24 $ (6.69)
Net gains on investment transactions
after taxes** 0.57 -- -- 0.57
-------- -------- --------- --------
Net (loss) earnings per share $ (6.79) $ 0.43 $ 0.24 $ (6.12)
======== ======== =====-=== ========
2003
Operating income* $ 2.42 $ 0.46 $ 0.29 $ 3.17
Net gains on investment transactions
after taxes** 3.93 -- 2.69 6.62
-------- -------- --------- --------
Net earnings per share $ 6.35 $ 0.46 $ 2.98 $ 9.79
======== ======== ========= ========
NINE MONTHS ENDED SEPTEMBER 30,
World Corporate
AIHL Minerals activities Total
-------- -------- -------- --------
2004
Operating income (loss)* $ 3.81 $ 1.18 $ (0.44) $ 4.55
Net gains on investment transactions
after taxes** 3.59 -- 0.15 3.74
-------- -------- -------- --------
Net earnings (loss) per share $ 7.40 $ 1.18 $ (0.29) $ 8.29
======== ======== ======== ========
2003
Operating income* $ 3.22 $ 1.21 $ 0.15 $ 4.60
Net gains on investment transactions
after taxes** 4.03 -- 3.03 7.04
-------- -------- -------- --------
Net earnings per share $ 7.25 $ 1.21 $ 3.18 $ 11.64
======== ======== ======== ========
- ----------
* Operating (loss) income represents net (loss) earnings per share on a GAAP
(generally accepted accounting principles) basis less the net gain or loss
on investment transactions taxed at the federal income tax rate.
** Taxed at the federal income tax rate.
AIHL recorded a net loss of $52.1 million on revenues of $216.4 million in
the 2004 third quarter, compared with net earnings of $48.5 million on revenues
of $221.5 million in the third quarter of 2003, and net earnings of $56.9
million on revenues of $664.7 million in the first nine months of 2004, compared
with net earnings of $55.2 million on revenues of $298.5 million in the first
nine months of 2003. AIHL's 2004 third quarter net losses include net investment
income after taxes (taxed at the federal income tax rate) of $5.9 million and
net gains on investment transactions after taxes (taxed at the federal income
tax rate) of $4.3 million, compared with net investment income after taxes
(taxed at the federal income tax rate) of $3.7 million and net gains on
investment transactions after taxes (taxed at the federal income tax rate) of
$30.1 million in the corresponding 2003 period.
The comparative pre-tax contributions to AIHL's results made by its
operating units RSUI, CATA and Darwin, and total AIHL results, were as follows
(in thousands, except ratios):
Three Months Ended September 30,
----------------------------------------------------------
RSUI(1) CATA(2) Darwin(3) AIHL
--------- -------- -------- ---------
2004
Gross premiums written (4) $ 305,460 $ 43,750 $ 25,283 $ 374,493
Net premiums written (4) 155,736 39,134 17,212 212,082
Net premiums earned $ 147,498 $ 37,687 $ 13,421 $ 198,606
Loss and loss adjustment expenses 212,199 21,238 8,729 242,166
Underwriting expenses 23,252 20,918 4,530 48,700
--------- -------- -------- ---------
Underwriting (loss) profit (5) $ (87,953) $ (4,469) $ 162 (92,260)
========= ======== ========
Interest, dividend and other income 11,094
Net gains on investment transactions 6,688
Other expenses (6,982)
---------
Losses before income taxes $ (81,460)
=========
Loss ratio (6) 143.9 56.4 65.0 121.9
Expense ratio (7) 15.7 55.5 33.8 24.5
Combined ratio (8) 159.6 111.9 98.8 146.4
2003
Gross premiums written (4) $ 489,868(9) $ 43,003 $ 6,177 $ 539,383
Net premiums written (4) 457,157 35,217 5,547 497,921
Net premiums earned $ 135,777 $ 30,935 $ 1,107 $ 167,819
Loss and loss adjustment expenses 81,645 18,239 725 100,609
Underwriting expenses 25,439 12,837 1,821 40,097
--------- -------- -------- ---------
Underwriting profit (loss) (5) $ 28,693 $ (141) $ (1,439) 27,113
========= ======== ========
Interest, dividend and other income 7,359
Net gains on investment transactions 46,275
Other expenses (5,780)
---------
Earnings before income taxes $ 74,967
=========
Loss ratio (6) 60.1 59.0 65.5 59.9
Expense ratio (7) 18.7 41.5 164.5 23.9
Combined ratio (8) 78.8 100.5 230.0 83.8
Nine Months Ended September 30,
---------------------------------------------------------
RSUI(1) CATA(2) Darwin(3) AIHL
--------- --------- -------- ---------
2004
Gross premiums written (4) $ 907,941 $ 132,130 $ 66,065 $1,106,136
Net premiums written (4) 465,241 118,134 45,831 629,206
Net premiums earned $ 449,810 $ 111,660 $ 30,019 $ 591,489
Loss and loss adjustment expenses 345,565 62,628 19,087 427,280
Underwriting expenses 70,241 51,679 11,168 133,088
--------- --------- -------- ----------
Underwriting profit (loss) (5) $ 34,004 $ (2,647) $ (236) 31,121
========= ====-==== ========
Interest, dividend and other income 30,754
Net gains (loss) on investment transactions 42,488
Other expenses (19,947)
----------
Earnings before income taxes $ 84,416
==========
Loss ratio (6) 76.8 56.1 63.6 72.3
Expense ratio (7) 15.6 46.3 37.2 22.4
Combined ratio (8) 92.4 102.4 100.8 94.7
2003
Gross premiums written (4) $ 489,868(9) $ 123,477 $ 8,273 $ 621,618
Net premiums written (4) 457,157 106,892 7,531 571,580
Net premiums earned $ 135,777 $ 97,768 $ 1,214 $ 234,759
Loss and loss adjustment expenses 81,645 57,843 789 140,277
Underwriting expenses 25,439 39,683 3,258 68,380
--------- --------- -------- ----------
Underwriting profit (loss) (5) $ 28,693 $ 242 $ (2,833) 26,102
========= ========= ========
Interest, dividend and other income 16,569
Net gains on investment transactions 47,147
Other expenses (7,257)
----------
Earnings before income taxes $ 82,561
==========
Loss ratio (6) 60.1 59.2 65.0 59.8
Expense ratio (7) 18.7 40.6 268.4 29.1
Combined ratio (8) 78.8 99.8 333.4 88.9
- ----------
(1) Since July 1, 2003.
(2) Includes the results of Platte River Insurance Company, which was acquired
contemporaneously with CATA in January 2002 and operates in conjunction
with CATA.
(3) Although Darwin is an underwriting manager for Platte River and certain
subsidiaries of CATA, Darwin is managed on an operating unit basis and
therefore, the results of business generated by Darwin have been separated
from CATA's results for purposes of this table.
(4) Amounts do not give effect to an inter-company pooling agreement.
(5) Represents net premiums earned less loss and loss adjustment expenses and
underwriting expenses, all as determined in accordance with generally
accepted accounting principles in the United States of America ("GAAP"),
and does not include interest, dividend and other income or net gains on
investment transactions. Underwriting profit (loss) does not replace net
income (loss) determined in accordance with GAAP as a measure of
profitability; rather, it provides a basis for management to evaluate the
underwriting performance of its insurance operating units.
(6) Loss and loss adjustment expenses divided by net premiums earned, all as
determined in accordance with GAAP.
(7) Underwriting expenses divided by net premiums earned, all as determined in
accordance with GAAP.
(8) The sum of the Loss Ratio and Expense Ratio, all as determined in
accordance with GAAP, representing the percentage of each premium dollar an
insurance company has to spend on losses (including loss adjustment
expenses) and underwriting expenses.
(9) Includes $320.8 million of unearned premiums which were acquired with RSUI
in July 2003 and $169.9 million of premiums assumed on a net basis.
RSUI recorded an underwriting loss of $87.9 million in the 2004 third
quarter, primarily reflecting $146.7 million of pre-tax catastrophe losses, net
of reinsurance and $10.5 million of reinsurance reinstatement premiums, from
Hurricanes Charley, Francis, Ivan and Jeanne. An underwriting profit of $28.7
million was earned for the comparable period in 2003 during which there were
$16.6 million of pre-tax catastrophe losses. Despite the hurricane losses in the
2004 third quarter, RSUI reported an underwriting profit of $34.0 million for
the first nine months of 2004, primarily reflecting strong property results in
the first half of 2004.
CATA's 2004 third quarter underwriting results primarily reflect $3.8
million of pre-tax catastrophe losses, higher underwriting expenses and
continued unfavorable results in its surety lines of business, partially offset
by better underwriting margins in its casualty lines of business on the current
accident year. The increase in CATA's gross premiums written in the first nine
months of 2004 compared with the corresponding 2003 period reflect the continued
expansion of its business into the excess and surplus markets.
Darwin's results in the third quarter and first nine months of 2004
continue to reflect organizational build-up expenses incurred to support premium
levels, as well as increased competition across all of its lines of business.
World Minerals recorded pre-tax earnings of $6.0 million on revenues of
$72.9 million in the 2004 third quarter, compared with pre-tax earnings of $6.9
million on revenues of $67.4 million in the 2003 third quarter, and pre-tax
earnings of $16.8 million on revenues of $211.2 million in the first nine months
of 2004, compared with pre-tax earnings of $18.3 million on revenues of $198.6
million in the first nine months of 2003. The 2004 nine month results reflect
lower margins due to competitive pricing pressures, increased energy, labor and
benefit costs and expenses in connection with information technology
initiatives, partially offset by an increase in net shipments and the continuing
favorable impact of the strong euro versus the U.S. dollar.
Corporate activities recorded a pre-tax loss of $4.0 million on revenues
of $49.3 million in the third quarter of 2004, compared with pre-tax earnings of
$25.9 million on revenues of $66.0 million in the corresponding period in 2003,
and a pre-tax loss of $10.5 million on revenues of $140.8 million in the first
nine months of 2004, compared with pre-tax earnings of $27.2 million on revenues
of $140.8 million in the corresponding 2003 period. The 2004 third quarter net
earnings include no net gains or (losses) on investment transactions, compared
with net gains on investment transactions after taxes (taxed at the federal
income tax rate) of $20.5 million in the corresponding 2003 period. 2004 nine
month net earnings include net gains on investment transactions after taxes
(taxed at the federal income tax rate) of $1.1 million, compared with $23.1
million in the first nine months of 2003.
As of September 30, 2004, Alleghany beneficially owned 8.0 million shares,
or approximately 2.0 percent, of the outstanding common stock of Burlington
Northern Santa Fe Corporation, which had an aggregate market value on that date
of approximately $306.5 million, or $38.31 per share, compared with a market
value on June 30, 2004 of $280.6 million, or $35.07 per share. The aggregate
cost of such shares is approximately $96.6 million, or $12.07 per share.
Alleghany has previously announced that it may purchase shares of its
common stock in open market transactions from time to time. In the third quarter
of 2004, Alleghany did not purchase any shares of its common stock. As of
September 30, 2004, Alleghany had 7,675,313 shares of common stock outstanding
(which includes the stock dividend declared in March 2004).
Additional information regarding the 2004 third quarter results of
Alleghany and its operating businesses is contained in Alleghany's Report on
Form 10-Q for the quarter ended September 30, 2004, which was filed with the
U.S. Securities and Exchange Commission on November 9, 2004.
Comment on Regulation G
This press release includes certain non-GAAP financial measures. The
reconciliations of such measures to the most comparable GAAP figures are
included herein. Throughout the press release Alleghany presents its operations
in the way it believes will be most meaningful and useful to the investing
public and others who use such information in evaluating Alleghany's results.
In addition to the GAAP presentations of net earnings (loss), Alleghany
reports operating income, a non-GAAP financial measure, which is net earnings
(loss) excluding net gains on investment transactions after tax. Management
presents operating income as a measure of its performance because the
realization of gains on investment transactions is largely discretionary as to
timing and can fluctuate significantly, which could distort the analysis of
trends and comparability of reported periods.
Alleghany also shows net earnings (loss) exclusive of both catastrophe
losses and net gains on investment transactions after tax, a non-GAAP financial
measure, which is intended to assist investors in analyzing the impact of such
items. Catastrophe losses are significant to Alleghany's 2004 results and,
similar to gains on investment transactions, can fluctuate significantly, which
could distort the analysis of trends and comparability of reported periods.
Alleghany also reports underwriting profit (loss), a non-GAAP financial
measure, in the tables relating to the comparative pre-tax contributions to
AIHL's results made by its operating units RSUI, CATA and Darwin. Underwriting
profit is net premiums earned less loss and loss
adjustment expense and underwriting expense and does not include interest,
dividend and other income or net gains on investment transactions. Management
believes that underwriting profit provides a basis to evaluate the underwriting
performance of its insurance operations.
Investors should consider these non-GAAP measures in addition to, and not
as a substitute for, measures of financial performance prepared in accordance
with GAAP.
# # #
ALLEGHANY CORPORATION
COMBINING STATEMENTS OF EARNINGS
(dollars in thousands)
(unaudited)
THREE MONTHS ENDED SEPTEMBER 30, 2004
-----------------------------------------------
ALLEGHANY
INSURANCE WORLD CORPORATE
HOLDINGS MINERALS ACTIVITIES COMBINED
--------- --------- ---------- ----------
REVENUES
Net fastener sales $ 0 $ 0 $ 41,846 $ 41,846
Interest, dividend and other income 11,094 (356) 7,418 18,156
Net premiums earned 198,606 0 0 198,606
Net mineral and filtration sales 0 73,276 0 73,276
Net gain (loss) on investment transactions 6,688 0 0 6,688
--------- --------- ---------- ----------
Total revenues 216,388 72,920 49,264 338,572
COSTS AND EXPENSES
Underwriting expenses 48,700 0 0 48,700
Salaries, administrative and other
operating expenses 6,830 10,321 9,550 26,701
Loss and loss adjustment expenses 242,166 0 0 242,166
Cost of goods sold - fasteners 0 0 32,880 32,880
Cost of mineral and filtration sales 0 55,974 0 55,974
Interest expense 0 598 748 1,346
Corporate administration 152 0 10,147 10,299
--------- --------- ---------- ----------
Total costs and expenses 297,848 66,893 53,325 418,066
--------- --------- ---------- ----------
EARNINGS BEFORE INCOME TAXES ($81,460) $ 6,027 ($ 4,061) (79,494)
--------- --------- ----------
INCOME TAXES (32,490)
----------
NET EARNINGS ($ 47,004)
----------
THREE MONTHS ENDED SEPTEMBER 30, 2003
-----------------------------------------------
ALLEGHANY
INSURANCE WORLD CORPORATE
HOLDINGS MINERALS ACTIVITIES COMBINED
--------- --------- ---------- ----------
REVENUES
Net fastener sales $ 0 $ 0 $ 30,559 $ 30,559
Interest, dividend and other income 7,359 (54) 3,791 11,096
Net premiums earned 167,819 0 0 167,819
Net mineral and filtration sales 0 67,502 0 67,502
Net gain (loss) on investment transactions 46,275 0 31,599 77,874
--------- --------- ---------- ----------
Total revenues 221,453 67,448 65,949 354,850
COSTS AND EXPENSES
Underwriting expenses 40,097 0 0 40,097
Salaries, administrative and other
operating expenses 5,780 9,908 7,226 22,914
Loss and loss adjustment expenses 100,609 0 0 100,609
Cost of goods sold - fasteners 0 0 23,614 23,614
Cost of mineral and filtration sales 0 50,174 0 50,174
Interest expense 0 451 930 1,381
Corporate administration 0 0 8,218 8,218
--------- --------- ---------- ----------
Total costs and expenses 146,486 60,533 39,988 247,007
--------- --------- ---------- ----------
EARNINGS BEFORE INCOME TAXES $ 74,967 $6,915 $25,961 107,843
--------- --------- ----------
INCOME TAXES 32,973
----------
NET EARNINGS $ 74,870
----------
ALLEGHANY CORPORATION
COMBINING STATEMENTS OF EARNINGS
(dollars in thousands)
(unaudited)
NINE MONTHS ENDED SEPTEMBER 30, 2004
-----------------------------------------------
ALLEGHANY
INSURANCE WORLD CORPORATE
HOLDINGS MINERALS ACTIVITIES COMBINED
--------- --------- ---------- ----------
REVENUES
Net fastener sales $ 0 $ 0 $ 123,226 $ 123,226
Interest, dividend and other income 30,754 (429) 15,850 46,175
Net premiums earned 591,489 0 0 591,489
Net mineral and filtration sales 0 211,603 0 211,603
Net gain (loss) on investment transactions 42,488 0 1,735 44,223
--------- --------- ---------- ----------
Total revenues 664,731 211,174 140,811 1,016,716
COSTS AND EXPENSES
Underwriting expenses 133,088 0 0 133,088
Salaries, administrative and other
operating expenses 19,656 30,185 27,033 76,874
Loss and loss adjustment expenses 427,280 0 0 427,280
Cost of goods sold - fasteners 0 0 93,221 93,221
Cost of mineral and filtration sales 0 162,417 0 162,417
Interest expense 0 1,727 2,178 3,905
Corporate administration 291 0 28,902 29,193
--------- --------- ---------- ----------
Total costs and expenses 580,315 194,329 151,334 925,978
--------- --------- ---------- ----------
EARNINGS BEFORE INCOME TAXES $ 84,416 $16,845 ($ 10,523) 90,738
--------- --------- ----------
INCOME TAXES 26,955
----------
NET EARNINGS $ 63,783
----------
NINE MONTHS ENDED SEPTEMBER 30, 2003
-----------------------------------------------
ALLEGHANY
INSURANCE WORLD CORPORATE
HOLDINGS MINERALS ACTIVITIES COMBINED
--------- --------- ---------- ----------
REVENUES
Net fastener sales $ 0 $ 0 $ 85,804 $ 85,804
Interest, dividend and other income 16,569 165 19,453 36,187
Net premiums earned 234,759 0 0 234,759
Net mineral and filtration sales 0 198,410 0 198,410
Net gain (loss) on investment transactions 47,147 0 35,569 82,716
--------- --------- ---------- ----------
Total revenues 298,475 198,575 140,826 637,876
COSTS AND EXPENSES
Underwriting expenses 68,380 0 0 68,380
Salaries, administrative and other
operating expenses 7,257 28,656 24,585 60,498
Loss and loss adjustment expenses 140,277 0 0 140,277
Cost of goods sold - fasteners 0 0 65,182 65,182
Cost of mineral and filtration sales 0 150,295 0 150,295
Interest expense 0 1,322 2,805 4,127
Corporate administration 0 0 21,001 21,001
--------- --------- ---------- ----------
Total costs and expenses 215,914 180,273 113,573 509,760
--------- --------- ---------- ----------
EARNINGS BEFORE INCOME TAXES $82,561 $ 18,302 $27,253 128,116
--------- --------- ----------
INCOME TAXES 39,526
----------
NET EARNINGS $ 88,590
----------
ALLEGHANY CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
SEPTEMBER 30, DECEMBER 31,
2004 2003*
(unaudited) (audited)
------------- ------------
ASSETS
Available for sale securities at fair value:
Equity securities $ 612,454 $ 620,754
Debt securities 1,327,385 917,270
Short-term investments 74,422 135,079
------------- ------------
2,014,261 1,673,103
Cash 275,838 231,583
Notes receivable 91,804 92,082
Accounts receivable, net 76,592 75,154
Premium balances receivable 170,578 279,682
Reinsurance receivables 580,425 211,753
Ceded unearned premium reserves 284,589 231,166
Deferred acquisition costs 56,885 47,282
Property and equipment - at cost, net of accumulated depreciation 170,924 177,708
Inventory 85,696 84,612
Goodwill and other intangibles, net of amortization 230,483 233,739
Deferred tax assets 111,074 85,736
Current taxes receivable 21,555 0
Other assets 75,909 94,898
------------- ------------
$ 4,246,613 $ 3,518,498
============= ============
LIABILITIES AND COMMON STOCKHOLDERS' EQUITY
Current taxes payable $ 0 $ 49,605
Losses and loss adjustment expenses 1,153,846 437,994
Other liabilities 224,738 211,000
Reinsurance payable 103,990 255,117
Unearned premiums 735,208 644,068
Subsidiaries' debt 158,724 167,050
Deferred tax liabilities 216,233 190,842
------------- ------------
Total liabilities 2,592,739 1,955,676
Common stockholders' equity 1,653,874 1,562,822
------------- ------------
$ 4,246,613 $ 3,518,498
============= ============
COMMON SHARES OUTSTANDING (adjusted for stock dividends) 7,675,313 7,644,232
============= ============
* Certain amounts have been restated and reclassified to conform to the 2004
presentation.