The National Security Group, Inc. Releases Estimates of Catastrophe Losses
14 July 2017 - 7:00AM
Business Wire
The National Security Group, Inc. (NASDAQ:NSEC) released
estimates of year to date catastrophe losses through June 30, 2017
incurred by property and casualty subsidiary National Security Fire
& Casualty.
During the three-month period ended June 30, 2017 (second
quarter), our property and casualty subsidiary, National Security
Fire & Casualty Company (NSFC), was impacted by 13 catastrophe
events which produced 958 reported policyholder claims by the end
of the second quarter. Estimated losses from second quarter
catastrophe events are expected to be approximately $4,774,000. Net
of tax, these losses are expected to reduce second quarter net
income by $3,151,000 or $1.25 per share. In comparison, NSFC was
impacted by seven catastrophe events during the second quarter of
2016 leading to 417 catastrophe related policyholder claims
totaling $2,036,000. Net of tax, second quarter 2016 catastrophe
losses reduced net income by $1,344,000 or $0.53 per share.
During the six-month period ended June 30, 2017, National
Security Fire & Casualty Company was impacted by 21 catastrophe
events producing 1,856 policyholder claims with estimated losses
expected to be approximately $9,178,000. Net of tax, these losses
are expected to reduce earnings for the six-month period ended June
30, 2017 by approximately $6,057,000 or $2.41 per share. In
comparison, NSFC was impacted by 13 catastrophe events from 802
claims totaling $3,483,000 for the six-month period ended June 30,
2016. Net of tax, 2016 catastrophe losses reduced net income for
the six-month period ended June 30, 2016 by $2,299,000 or $0.91 per
share.
A prolonged pattern of severe weather in 2017, which commenced
in early January and continued into June, has been widespread,
impacting each state in which we operate and much of North America.
Unfortunately, this pattern of increased frequency of severe
thunderstorm activity in 2017 will materially impact our second
quarter and year to date earnings. We have set August 11, 2017 as
our scheduled release date for our second quarter and year to date
financial results through June 30, 2017.
The National Security Group, Inc. (NASDAQ Symbol: NSEC), through
its property and casualty and life insurance subsidiaries, offers
property, casualty, life, accident and health insurance in ten
states. The Company writes primarily personal lines property
coverage including dwelling fire and windstorm, homeowners and
mobile homeowners lines of insurance. The Company also offers life,
accident and health, supplemental hospital and cancer insurance
products. The Company was founded in 1947 and is based in Elba,
Alabama. Additional information about the Company, including
additional details of recent financial results, can be found on our
website: www.nationalsecuritygroup.com.
Information about forward-looking statements
Any statement contained in this report which is not a historical
fact, or which might otherwise be considered an opinion or
projection concerning the Company or its business, whether
expressed or implied, is meant as and should be considered a
forward-looking statement as that term is defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are based on assumptions and opinions concerning a
variety of known and unknown risks, including but not limited to
changes in market conditions, natural disasters and other
catastrophic events, increased competition, changes in availability
and cost of reinsurance, changes in governmental regulations,
technological changes, political and legal contingencies and
general economic conditions, as well as other risks and
uncertainties more completely described in the Company’s filings
with the Securities and Exchange Commission. If any of these
assumptions or opinions proves incorrect, any forward-looking
statements made on the basis of such assumptions or opinions may
also prove materially incorrect in one or more respects and may
cause future results to differ materially from those contemplated,
projected, estimated or budgeted in such forward-looking
statements. Please refer to the Company's Annual Reports on Form
10-K and Quarterly Reports on Form 10-Q filed with the Securities
and Exchange Commission for information concerning the important
factors that can cause results to differ materially from these
forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20170713006185/en/
The National Security Group, Inc.Brian McLeod, 334-897-2273Chief
Financial Officer
National Security (NASDAQ:NSEC)
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