|
|
|
 |
 |
|||||||||
|
CNA Surety Announces 24% Increase in Fiscal 1999 Net Income and an 18% Increase in Fourth Quarter Net Income CHICAGO, February 22, 2000 -- CNA Surety Corporation (NYSE:SUR) today reported double-digit growth in net income, operating earnings, net written premiums and underwriting income for the year and fourth quarter ended December 31, 1999. These exceptional results were driven by increased domestic and international premiums for contract surety bonds and continued profitable underwriting activity. Highlights of the fiscal 1999 results compared with the same period in 1998 include:
Mark C. Vonnahme, President and Chief Executive Officer, stated, "We finished our second full year of operations as a public company with impressive full year and fourth quarter operating results. Net written premiums grew 10 percent for the year and 13 percent for the quarter, significantly outperforming the historical industry growth rate and exceeding our targeted annual growth rate of 6 to 9 percent. These outstanding results reflect successful execution of our core growth strategies of leveraging our broad product and distribution resources and increasing CNA Surety's global presence." "In addition to achieving favorable operating and underwriting results, we also focused on enhancing shareholder value through prudent capital management. In 1999, we repurchased 1.1 million common shares of the Company. We continue to view share repurchases at the current market price as an attractive use of capital." For the fourth quarter ended December 31, 1999, net income increased 18 percent to $15.4 million, or 35 cents per share, compared to $13.1 million, or 30 cents per share, in 1998. Operating earnings, after income taxes, increased 24 percent to $15.7 million, or 36 cents per share, from $12.7 million, or 29 cents per share, in 1998. These increases in operating results were primarily attributable to continued profitable underwriting activity. Operating earnings per share for the fourth quarter and year ended December 31, 1999 also benefited from higher after-tax investment income, reduced interest expense and share repurchase activity. For the full year of 1999, net written premiums increased 10 percent to $299.0 million. Excluding international reinsurance business assumed from CNA Reinsurance Company, Limited (London), direct net written premiums increased 10 percent to $287.7 million for the year. Net written premiums for contract surety increased $18.5 million, or 15 percent, for the year to $145.6 million. This increase was due to favorable economic conditions for public construction nationwide and an increase of $8.0 million in direct international premium to $8.7 million. Net written premiums for direct commercial surety increased $6.9 million, or 6 percent, to $117.6 million. International commercial reinsurance business increased 13 percent to $11.3 million. For the year ended December 31, 1999, underwriting income increased $10.1 million, or 16 percent, to $71.9 million. The loss and combined ratios were 15.7 percent and 74.6 percent, respectively, for the year ended December 31, 1999, compared to 17.4 percent and 76.1 percent, respectively, for the same period in 1998. The loss and combined ratios for the year ended December 31, 1999 and the comparable period of 1998 include favorable loss reserve development of $13.1 million and $4.4 million, respectively. The expense ratio remained relatively unchanged at 58.9 percent for the year ended December 31, 1999 compared with the expense ratio of 58.7 percent for the year ended December 31, 1998. For the fourth quarter ended December 31, 1999, net written premiums increased 13 percent to $74.5 million with contract surety and commercial surety both up 13 percent. Contract surety premium growth includes increased direct international contract premium of $1.6 million for the quarter. The commercial surety premium increase for the quarter reflects positive new and renewal account activity and approximately $1.0 million in non-recurring premiums associated with large court bond obligations. International commercial reinsurance business increased 20 percent to $3.0 million. Underwriting income for the 1999 fourth quarter increased $1.9 million, or 11 percent, to $19.9 million. The Company's loss and combined ratios were 15.6 percent and 73.1 percent, respectively, for the fourth quarter of 1999 compared with loss and combined ratios for the comparable 1998 quarter of 15.9 percent and 73.1 percent, respectively. The loss and combined ratios for the fourth quarter of 1999 include favorable loss reserve development of $4.2 million compared with favorable loss reserve development of $2.4 million for the fourth quarter of 1998. The expense ratio increased slightly to 57.5 percent in the fourth quarter of 1999 compared with the expense ratio of 57.2 percent in the comparable quarter of 1998. Through December 31, 1999, the Company has repurchased approximately 1.1 million of its shares at an aggregate cost of $11.8 million. Depending on market conditions, additional shares may be purchased from time to time in the open market or otherwise. CNA Surety Corporation is the largest publicly traded surety company in the country. Through its principal subsidiaries, Western Surety Company and Universal Surety of America, CNA Surety provides surety and fidelity bonds in all 50 states through a combined network of approximately 37,000 independent agencies. Visit us at www.cnasurety.com on the World Wide Web. CNA is a registered service mark, trade name and domain name of CNA Financial Corporation. CNA Surety Corporation Press Release Investor Data To view this pdf file, you will need to download Adobe Acrobat Reader. Click on the Adobe icon below to download this free software now.
|
|||||||||
 |
|
|
|
|
|
|||||
|
Top | Home | About
CNA Surety | Products | Broker/Agent
Services | bONdLINE |
|
| Read Disclaimer | This site and its contents © Copyright 2009 CNA Surety. All rights reserved. |
