Results for the three months and six months ended June 30, 2011 and 2010, based on accounting principles generally accepted in the United States of America, were reported today as follows:
|Three Months Ended June 30||Six Months Ended June 30|
|Realized Investment Gain (Loss)||261,000||689,000||1,031,000||1,358,000|
|Net Income Per Share||$||(2.00||)||$||0.33||$||(1.60||)||$||1.10|
In addition to the catastrophic losses incurred during the last week of April, the Company incurred an additional $2,274,000 in losses from various other tornado and windstorm events which were not covered by catastrophe reinsurance. These events reduced net income by an additional $1,500,000 for the quarter and year to date period ended June 30, 2011.The net loss for the six months ended June 30, 2011 totaled $3,950,000, $1.60 per share, compared to net income of $2,708,000, $1.10 per share, for the same period last year. The most significant factor contributing to the decline in second quarter net income was the increased frequency of tornado losses. Premium revenue for the three-month period ended June 30, 2011, decreased $2,582,000 compared to the same period last year. The decline was primarily driven by declines in net earned premium in the P&C segment due to catastrophe reinstatement premium, a moderate decline in homeowners business and a decrease in auto policies in-force. Catastrophe reinstatement premium ceded related to Cat 46 totaled $1,490,000. Premium revenue for the six-months ended June 30, 2011, decreased $2,750,000 compared to the same period last year. The primary reason for the decrease in net earned premium was an increase in ceded premium from catastrophe reinstatement. Also impacting the decline were decreases in the homeowners and personal lines auto business. Shareholders’ equity as of June 30, 2011 was $39,250,000 compared to $43,710,000 down $4,460,000 compared to December 31, 2010. Book value per share declined $1.81 per share for the period ended June 30, 2010 to $15.91 per share compared to $17.72 per share at December 31, 2010. Factors contributing to the change in equity were a year-to-date net loss of $3,950,000, recoveries in market values of fixed maturities and equity securities of $285,000, a net loss on interest rate swaps of $55,000 and dividends paid of $740,000.
The National Security Group, Inc., through its property & casualty and life insurance subsidiaries, offers property, casualty, life, accident and health insurance in thirteen 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.