The National Security Group, Inc. Releases Third Quarter Earnings
The National Security Group, Inc. (the Company) (Nasdaq: NSEC), today reported results for the quarter and nine months ended September 30, 2010 and 2009, based on accounting principles generally accepted in the United States of America, as follows:
|Three Months||Nine Months|
|Ended September 30||Ended September 30|
|Net premiums earned||$||15,248||$||14,357||$||46,189||$||44,950|
|Net investment income||1,175||1,603||3,696||4,214|
|Net realized investment gains (losses)||75||79||1,433||(151||)|
|BENEFITS AND EXPENSES|
|Policyholder benefits paid or provided||10,096||9,131||29,630||28,237|
|Policy acquisition costs||3,082||3,432||8,800||9,699|
|Taxes, licenses and fees||525||376||1,492||1,356|
|(Loss) Income Before Income Taxes||(32||)||548||3,819||2,441|
|INCOME TAX (BENEFIT) EXPENSE||(255||)||(103||)||888||217|
|EARNINGS PER COMMON SHARE||$||0.09||$||0.26||$||1.19||$||0.90|
For the quarter ended September 30, 2010, the Company had net income of $223,000 ($0.09 per share) compared to net income of $651,000 ($0.26 per share) for the same period last year. The most significant factors contributing to the decline in the third quarter of 2010 were a $965,000 increase in policyholder benefits paid or provided coupled with a $309,000 increase in general expenses. The 10.6% increase in policyholder benefits paid or provided was largely related to a $659,000 increase in losses paid during the third quarter of 2010 compared to the same period last year in the P&C segment combined with a $320,000 increase in death and maturity benefits in the Life segment for the same time period. The 12.4% increase in general expenses was primarily related to litigation expense. Positively impacting the quarter were an $891,000 ($0.36 per share) increase in net premiums earned as well as a $350,000 reduction in policy acquisition costs.
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