GAINSCO Reports 1st Quarter 2008 Results
DALLAS, May possibly 15 /PRNewswire-FirstCall/ — GAINSCO, INC. these days declared internet revenue for the first quarter 2008 of $ .two million, or $ .01 per common share, basic and diluted. This compares to 1st quarter 2007 web damage of $ 2.6 million, or $ .10 per typical share, standard and diluted.
Gross rates written for the duration of the 1st quarter 2008 had been approximately 11% beneath gross rates created in the similar 2007 interval. Gross rates composed by geographic area for the quarters ended March 31, 2008 and March 31, 2007, ended up as follows:
3 months ended(bucks in thousands and thousands)March 31,20082007Regions:Southeast (Florida, South Carolina)$ 30.331.6South Central (Texas)$ twelve.615.8Southwest (Arizona, Nevada, New Mexico)$ eight.510.0West (California)$ .61.1Total$ 52.058.five
GAAP ratios for the quarters ended March 31, 2008 and March 31, 2007, were as follows:
Three months endedMarch 31,20082007Total Firm:C & CAE Ratio (1)74.8%84.%Price Ratio (two)(3)twenty five.8%23.2%Mixed Ratio(two)a hundred.6%107.2%Nonstandard Private Vehicle:C & CAE Ratio (1)74.eight%86.seven%(one) C & CAE is an abbreviation for Claims and statements adjustment expenditures,said as a proportion of internet rates earned.(2) The Cost Ratio and Combined Ratio do not reflect bills of theholding organization, which include curiosity expense on the take note payableand subordinated debentures.(3) Commissions, modify in deferred acquisition expenses, underwritingexpenses and operating costs (insurance policy subsidiaries only) areoffset by agency revenues and are mentioned as a percentage of netpremiums attained.
The Firm continues to change and settle claims associated with its runoff lines. For the 1st quarter of 2008, the Company did not document material advancement for statements taking place in prior incident years for runoff lines. During the first quarter 2007, the Organization recorded favorable advancement for statements happening in prior accident many years for runoff lines of $ one.four million.
As regards the Company’s nonstandard individual car business, the Organization recorded in the course of the first quarter 2008 unfavorable improvement for statements taking place in prior accident years of $ 1.7 million. For the very first quarter 2007, the Organization recorded unfavorable advancement for claims taking place in prior incident decades for nonstandard private automobile of $ six.two million. In the very first quarter 2008, the unfavorable growth for prior incident many years included about $ .three million associated to additional-contractual claims.
As of March 31, 2008, the Company had $ 67.7 million in internet unpaid statements and claims adjustment costs (“C&CAE”) (Unpaid C&CAE of $ seventy five.five million less Ceded unpaid C&CAE of $ 7.eight million), in comparison to internet unpaid C&CAE at December 31, 2007 of $ 66. million (Unpaid C&CAE of $ 74.7 million significantly less Ceded unpaid C&CAE of $ eight.seven million). These quantities contain net unpaid C&CAE in respect of the Company’s runoff lines of $ 9.nine million at March 31, 2008, and $ ten.3 million at December 31, 2007. As of March 31, 2008, the excellent stock of runoff statements was 51, in contrast to 47 at December 31, 2007.
As of March 31, 2008, the Company’s Shareholders’ equity was $ 64.6 million, Subordinated debentures ended up $ 43. million and Take note payable was $ one.eight million. These evaluate to Shareholders’ equity of $ 66. million, Subordinated debentures of $ 43. million and Notice payable of $ one.nine million at December 31, 2007.
Per frequent share quantities for all periods offered have been adjusted for the rights offerings in November 2006 and August 2005, as effectively as the reverse stock split in November 2005.
GAINSCO, INC. is a Dallas, Texas-dependent keeping organization. The Company’s nonstandard personalized auto insurance plan goods are distributed by way of independent retail agents in Florida and South Carolina (Southeast Area), Texas (South Central Region) and Arizona, Nevada and New Mexico (Southwest Region), and via an impartial managing general company in California (West Area). Its insurance plan business subsidiary is MGA Insurance Organization, Inc.
Some of the statements made in this release could be forward-seeking statements. Forward-seeking statements relate to potential occasions or long term monetary performance and might involve known or mysterious pitfalls, uncertainties and other aspects which might result in actual outcomes, overall performance or achievements to be materially various from long term results, efficiency or achievements expressed or implied by these forward-seeking statements.
These ahead-hunting statements reflect present views but are based mostly on assumptions and are issue to dangers, uncertainties and other variables which should be considered when making an investment selection, which includes, (a) operational pitfalls and other challenges linked with quick development into new and unfamiliar markets and states, (b) adverse industry conditions, including heightened competitors, (c) factors considered by A.M. Best in the score of our insurance policy subsidiary, and the acceptability of our latest rating, or a long run score, to agents and buyers, (d) the Company’s potential to change and settle the remaining statements connected with its runoff organization on terms steady with its estimates and reserves, (e) the adoption or amendment of legislation, uncertainties in the end result of litigation and adverse tendencies in litigation and regulation, (f) inherent uncertainty arising from the use of estimates and assumptions in choices about pricing and reserves, (g) the results on statements ranges or enterprise functions resulting from natural disasters and other adverse climatic conditions circumstances, (h) the availability of reinsurance and the Company’s capacity to accumulate reinsurance recoverables, (i) the availability and cost of cash, which may be necessary in buy to put into action the Company’s methods, and (j) constraints on the Company’s ability to use internet operating damage carryforwards. Remember to refer to the Company’s current SEC filings, like the Yearly Report on Type 10-K for the year ended December 31, 2007, for more info concerning components that could influence the Company’s results.
Ahead-searching statements are pertinent only as of the dates produced, and the Organization undertakes no obligation to update any forward-searching assertion to reflect new details, activities or circumstances soon after the date on which the assertion is manufactured. All created or oral ahead-looking statements that are made by or are attributable to the Organization are expressly capable in their entirety by this cautionary notice. Actual results may vary considerably from the results talked about in these forward-looking statements.
(The GAINSCO, INC. and Subsidiaries unaudited Consolidated Statements of Functions and Other Details for the quarters ended March 31, 2008 and March 31, 2007 follow.)
GAINSCO, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF Operations(In countless numbers, other than per share info)3 months endedMarch 31,20082007Net premiums attained$ 43,34051,463Net expense income2,1342,422Net realized gains81–Company revenues2,9853,307Other cash flow, net2652Total revenues48,56657,244Claims & CAE incurred32,41643,226Policy acquisition costs7,1779,424Underwriting and operating expenses7,8556,741Interest price, net9391,023Income (damage) ahead of Federal revenue taxes179(three,170)Federal revenue taxes12(620)Net cash flow (decline)$ 167(two,550)Cash flow (reduction) per frequent share:Standard$ .01(.ten)Diluted$ .01(.ten)GAINSCO, INC. AND SUBSIDIARIESOTHER Information(In hundreds, besides for each share info)A few months endedMarch 31,20082007Gross rates published$ 51,96658,463GAAP RATIOS:C & CAE Ratio (1)74.eight%84.%Cost Ratio (2)(3)25.8%23.two%Merged Ratio (2)100.six%107.two%(1) C & CAE is an abbreviation for Statements and claims adjustment bills,said as a proportion of internet rates attained.(two) The Cost Ratio and Merged Ratio do not reflect bills of theholding firm, which contain interest on the be aware payable andsubordinated debentures.(3) Commissions, alter in deferred acquisition fees, underwritingexpenses and operating costs (insurance subsidiaries only) areoffset by company revenues and are mentioned as a proportion of netpremiums attained.
GAINSCO, INC.
Get in touch with: Scott A. Marek, Asst. Vice President-IR, +1-972-629-4493, orRichard M. Buxton, Senior Vice President, +one-972-629-4408, equally of GAINSCO,INC., ir@gainsco.com
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