State National Companies’ Board Approves $50 Million Stock Repurchase Program
13 October 2015 - 7:15AM
State National Companies, Inc. (NASDAQ:SNC), a leading specialty
provider of property and casualty insurance, announced today that
its Board of Directors has approved a stock repurchase program
under which the Company may repurchase up to $50 million of its
common stock through December 31, 2016. The buyback program will be
financed from currently held cash and investments.
Under the terms of the stock repurchase program,
the Company is authorized to repurchase shares from time to time on
the open market at prevailing market prices or in negotiated
transactions in accordance with applicable securities rules and
regulations. The Company’s repurchase of shares will not begin
before the release of the Company’s financial statements for the
third quarter ending September 30, 2015, which is expected to be in
mid-November. Repurchases may also be made under a plan in
accordance with the guidelines specified under Rule 10b5-1 under
the Securities Exchange Act of 1934, as amended, if and when one is
established. The stock repurchase program may be suspended,
modified or discontinued at any time, and does not obligate the
Company to purchase any specific number of shares.
“State National has a very capital efficient
business model that generates substantial operating cash flow and
today’s announcement represents the continuation of our commitment
to manage capital to enhance shareholder value,” said Terry
Ledbetter, SNC’s President and Chief Executive Officer. “Our
management team and Board of Directors believe in our long-term
growth prospects as well as our ability to generate strong profits
and cash flow. The stock repurchase program represents an
important step toward optimizing the capital structure of the
Company and demonstrates our commitment to creating, enhancing and
returning value to shareholders.”
About State National Companies,
Inc.
State National Companies, Inc. (NASDAQ:SNC) is a
leading specialty provider of property and casualty insurance
operating in two niche markets across the United States. In
its Program Services segment, the Company leverages its “A”
(Excellent) A.M. Best rating, expansive licenses and reputation to
provide access to the U.S. property and casualty insurance market
in exchange for ceding fees. In its Lender Services segment,
the company specializes in providing collateral protection
insurance, which insures personal automobiles and other vehicles
held as collateral for loans made by credit unions, banks and
specialty finance companies. To learn more, please visit
www.statenational.com. The Company routinely posts important
company information on its website.
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING
STATEMENTS Various statements contained in this press release are
forward-looking statements made pursuant to the Safe Harbor
Provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements may include projections and
estimates concerning the timing and success of specific projects
and our future production, revenues, income and capital spending.
Our forward-looking statements are generally, but not always,
accompanied by words such as “estimate,” “believe,” “expect,”
“will,” “plan,” “target,” “could” or other words that convey
the uncertainty of future events or outcomes.
There can be no assurance that actual
developments will be those anticipated by us. Actual results may
differ materially from those expressed or implied in these
statements as a result of significant risks and uncertainties,
including, but not limited to, our ability to recover from our
capacity providers, the cost and availability of reinsurance
coverage, challenges to our use of issuing carrier or fronting
arrangements by regulators or changes in state or federal
insurance or other statutes or regulations, our dependence on a
limited number of business partners, potential regulatory scrutiny
of lender-placed automobile insurance, level of new car sales,
availability of credit for vehicle purchases and other factors
affecting automobile financing, our ability to compete effectively,
a downgrade in the financial strength ratings of our insurance
subsidiaries, our ability to accurately underwrite and price our
products and to maintain and establish accurate loss reserves,
changes in interest rates or other changes in the financial
markets, the effects of emerging claim and coverage issues, changes
in the demand for our products, the effect of general economic
conditions, breaches in data security or other disruptions with our
technology, and changes in pricing or other competitive
environments.
Forward-looking statements involve inherent
risks and uncertainties that are difficult to predict, many of
which are beyond our control. Additional information about these
risks and uncertainties is contained in our filings with the
Securities and Exchange Commission. The forward-looking statements
in this press release speak only as of the date of this release,
and we undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
CONTACTS: State National Companies, Inc.
David Hale, COO & CFO
817-265-2000
Dennard ▪ Lascar Associates
Rick Black
713-529-6600
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