The National Security Group, Inc. Releases First Quarter Earnings

Results for the three months ended March 31, 2011 and 2010, based on accounting principles generally accepted in the United States of America, were reported today as follows:
  Three Months Ended March 31
 
2011 2010
 
Premium Income $ 14,870,000 $ 15,038,000
Investment Income 1,142,000 1,326,000
Realized Investment Gains 770,000 669,000
Other Income 255,000 299,000
Total Revenues $ 17,037,000 $ 17,332,000
 
Net Income $ 995,000 $ 1,894,000
 
Net Income Per Share $ 0.40 $ 0.77

The Company ended the first quarter of 2011 with a net income of $995,000 or $0.40 per share, compared to a net income of $1,894,000 or $0.77 per share for the same period last year. The primary reason for the decline in net income was an $849,000 increase in policyholder benefits paid or provided. The 10% increase in policyholder benefits paid or provided was primarily due to an increase in weather related claim frequency in the property and casualty subsidiaries.

Consolidated premium revenue was $14,870,000 as of March 2011 compared to $15,038,000 as of March 2010; a decrease of $168,000 or 1.1%. We continue to limit new business production in our dwelling lines of business in areas with high concentrations of coastal exposure along the Alabama, Mississippi and Louisiana coast. These efforts have reduced the rate of new business production which has led to short term stagnation in revenue growth.

As of March 31, 2011, shareholders’ equity totaled $44,203,000 compared to $43,710,000 as of December 31, 2010; an increase of 1.1%.

The National Security Group, Inc. (NASDAQ Symbol: NSEC), through its property & casualty and life insurance subsidiaries, offers property, casualty, life, accident and health insurance in twelve states. The Company writes primarily personal lines property coverage including dwelling fire and windstorm, homeowners, mobile homeowners and personal non-standard automobile 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.

Copyright Business Wire 2010

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