-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Mjzrdj0yrelL5DDkizvEKTQqgJOAHI4DQZ4s04yueBTzp8qnnp/kDS8vDkYLfHtB h53+ldDAu8cmGSrk65UFiA== /in/edgar/work/20001101/0001013564-00-000015/0001013564-00-000015.txt : 20001106 0001013564-00-000015.hdr.sgml : 20001106 ACCESSION NUMBER: 0001013564-00-000015 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000930 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20001101 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FARM FAMILY HOLDINGS INC CENTRAL INDEX KEY: 0001013564 STANDARD INDUSTRIAL CLASSIFICATION: [6331 ] IRS NUMBER: 141789227 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-11941 FILM NUMBER: 750554 BUSINESS ADDRESS: STREET 1: 344 RT 9W CITY: GLENMONT STATE: NY ZIP: 12077 BUSINESS PHONE: (518)431-5000 MAIL ADDRESS: STREET 1: PO BOX 656 CITY: ALBANY STATE: NY ZIP: 12201 8-K 1 0001.txt FARM FAMILY HOLDINGS, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: November 1, 2000 FARM FAMILY HOLDINGS, INC. A Delaware Corporation Commission File No. 1-11941 IRS No. 14-1789227 344 Route 9W, Glenmont, New York 12077-2910 Registrant's telephone number: (518) 431-5000 Item 5. Other Events On October 31, 2000, Farm Family Holdings, Inc. issued a press release announcing the results of its operations for the third quarter ended September 30, 2000. Item 7. Financial Statements and Exhibits The following exhibits are filed as part of this report: Exhibit Index Exhibit 99 - Press Release Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. FARM FAMILY HOLDINGS, INC. (Registrant) November 1, 2000 /s/ Philip P. Weber - -------------------------------- -------------------------------------------- (Date) Philip P. Weber President and CEO Farm Family Holdings Reports Increased Operating Income for the Third Quarter Ended September 30, 2000 Glenmont, New York - October 31, 2000 - Farm Family Holdings, Inc. (NYSE: FFH) ("the Company") today announced that consolidated operating income for the third quarter of 2000 increased to $5,299,000 compared to $5,243,000 for the same period in 1999. On a diluted per share basis, consolidated operating income increased to $0.88 for the third quarter of 2000 compared to $0.85 for the same period in 1999. Consolidated operating income for the first nine months of 2000 was $14,256,000 compared to $13,949,000 for the same period in 1999. On a diluted per share basis, consolidated operating income for the first nine months of 2000 was $2.34 compared to $2.38 for the same period in 1999. Net income for the third quarter of 2000 was $5,214,000 compared to $5,068,000 for the third quarter of 1999. On a diluted per share basis, net income was $0.86 for the third quarter of 2000 compared to $0.82 for the same period in 1999. Net income for the first nine months of 2000 was $26,651,000 compared to $13,965,000 for the same period in 1999. On a diluted per share basis, net income for the first nine months of 2000 was $4.37 compared to $2.38 for the same period in 1999. In addition, book value on a diluted per share basis increased to $33.79 per share as of September 30, 2000. Philip P. Weber, President and CEO of Farm Family Holdings, said, "Overall, I am pleased with our operating results for the third quarter. The GAAP combined ratio for our property and casualty segment was 101.9% for the third quarter of 2000, primarily as a result of the inclusion of United Farm Family. Our primary property and casualty company, Farm Family Casualty, had a GAAP combined ratio of 98.0% for the third quarter of 2000. In addition, our life insurance segment posted operating income in line with our expectations. We continue to emphasize delivery of multiple policies into the households and businesses we serve." Property and Casualty Insurance Business For the third quarter of 2000, property and casualty net written premiums increased 6.1% to $53,258,000 compared to $50,201,000 for the same period in 1999. For the first nine months of 2000, property and casualty net written premiums were $173,933,000 compared to $147,357,000 for the same period in 1999, which includes the operations of United Farm Family since April 6, 1999. The increase in property and casualty net written premiums for the first nine months of 2000 was primarily attributable to an increase of $30,825,000 in direct written premiums (excluding assigned risk automobile business premiums) largely as a result of the conversion of our personal and commercial automobile policies in certain states from six-month to twelve-month policies. Excluding the impact of converting personal and commercial automobile policies from six-month to twelve-month policies in certain states, we estimate that property and casualty direct written premiums (excluding assigned risk automobile business premiums) would have increased approximately $11,657,000 or 8.2% to $154,354,000 for the first nine months of 2000. This increase was partially offset by a decrease of $1,743,000 in assigned risk automobile premiums, an increase of $1,834,000 in premiums ceded to our reinsurers and a decrease of $672,000 in assumed reinsurance premiums. Operating income for our property and casualty business for the third quarter was $4,566,000 compared to $4,439,000 for the same period in 1999 and was $11,666,000 for the first nine months of 2000 compared to $12,855,000 for the same period in 1999. Life Insurance Business Life insurance premium revenue was $9,338,000 for the third quarter of 2000 compared to $9,055,000 for the same period in 1999. Total collected premiums from life insurance policies increased 6.0% to $9,781,000 for the third quarter of 2000 compared to the same period in 1999. Life insurance operating income was $1,024,000 for the third quarter of 2000 compared to $963,000 for the same period in 1999. The increase in operating income was largely due to revisions made in the first quarter of 2000 to the Company's calculation of its estimate of profits on participating life insurance business allocable to stockholders. In addition, the Company's expense management program continues to improve operating results for our life insurance business. The operations of the life insurance business have been included in the Company's operating results since April 6, 1999, when the Company acquired all of the outstanding capital stock of Farm Family Life. Farm Family Holdings is the parent of Farm Family Casualty Insurance Company and Farm Family Life Insurance Company. Farm Family Casualty and Farm Family Life's subsidiary, United Farm Family, are specialized property and casualty insurers of farms, agricultural related businesses and residents and businesses of rural and suburban communities. Farm Family Life sells individual whole life, term and universal life products, single and flexible premium deferred annuity products and disability income insurance products. Additional information regarding the Company is available at www.farmfamily.com. Safe Harbor Statement under The Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current knowledge, expectations, estimates, beliefs and assumptions. The forward-looking statements in this press release include, but are not limited to, statements of the plans and objectives of the Company or its management, statements of future economic performance and assumptions underlying statements regarding the Company or its business. Readers are hereby cautioned that certain events or circumstances could cause actual results to differ materially from those estimated, projected, or predicted. The forward-looking statements in this press release are not guarantees of future performance and are subject to a number of important risks and uncertainties, many of which are outside the Company's control, that could cause actual results to differ materially. These risks and uncertainties include, but are not limited to, exposure to catastrophic loss, frequency and severity of losses, geographic concentration of loss exposure in New York, New Jersey, and the Northeastern United States generally, conditions specific to the insurance industry, including its cyclical nature, regulatory changes and conditions, rating agency policies and practices, competitive factors, claims development and the impact thereof on loss reserves and the Company's reserving policy, the adequacy of the Company's reinsurance programs, developments in the securities markets and the impact thereof on the Company's investment portfolio, the effect of regulatory changes governing personal automobile insurance in New Jersey and the impact thereof on the Company's direct written premium, losses and loss adjustment expenses, the risks associated with the legislative, regulatory and competitive environments in the states in which the Company currently operates, heightened competition, including specifically the intensification of competition, failure to obtain new customers or to retain existing customers, the Company's primary reliance, as a holding company, on dividends from its subsidiaries and the applicable regulatory restrictions on the ability of the Company's subsidiaries to pay such dividends, changes in tax laws, and other risks listed from time to time in the Company's Securities and Exchange Commission filings, including Form 10-K filed for the fiscal year ended December 31, 1999 and Form 10-Q's filed for the quarters ended March 31, 2000 and June 30, 2000.
FARM FAMILY HOLDINGS, INC. Condensed Consolidated Statements of Income ($ in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2000 1999 2000 1999 ---------------------------------------------------- Revenues: Premiums from property/casualty operations $51,425 $49,398 $147,391 $142,455 Premiums from life and health operations and contract charges 9,338 9,055 28,321 18,351 Net investment income 19,084 18,343 56,429 40,619 Realized investment losses, net (587) (1,216) (1,743) (1,004) Other income 486 287 1,402 1,023 ---------------------------------------------------- Total revenues 79,746 75,867 231,800 201,444 ---------------------------------------------------- Losses, benefits and expenses: Losses and loss adjustment expenses on property/casualty operations 40,481 37,378 115,969 106,787 Policyholder contract benefits 12,039 12,874 39,938 26,411 Amortization expense 10,065 9,607 28,604 27,772 Other operating costs and expenses 6,685 5,863 18,410 14,781 Participating policyholders' interest 3,287 3,101 (9,880) 5,674 ---------------------------------------------------- Total losses, benefits and expenses 72,557 68,823 193,041 181,425 ---------------------------------------------------- Income before federal income tax expense and preferred stock dividends 7,189 7,044 38,759 20,019 Federal income tax expense 1,886 1,872 11,840 5,865 ---------------------------------------------------- Income before preferred stock dividends 5,303 5,172 26,919 14,154 Preferred stock dividends 89 104 268 189 ---------------------------------------------------- Net income attributable to common stockholders $5,214 $5,068 $26,651 $13,965 ==================================================== Operating Income (1) $5,299 $5,243 $14,256 $13,949 ==================================================== Per Share Data Net income per share-Diluted $0.86 $0.82 $4.37 $2.38 ==================================================== Operating income per share-Diluted (1) $0.88 $0.85 $2.34 $2.38 ==================================================== Weighted average shares outstanding-Diluted 6,049,310 6,192,763 6,103,580 5,863,362 ====================================================
(1) Operating income excludes the impact of realized investment gains (losses), non-recurring charges, and the related taxes thereon. See "Selected Segment Information" for a reconciliation of operating income to net income.
FARM FAMILY HOLDINGS, INC. Condensed Consolidated Balance Sheets ($ in thousands, except per share data) September 30, 2000 December 31, 1999 - ---------------------------------------------------------------------------------------------------------------------------- Assets: Investments $1,098,107 $1,071,681 Cash and cash equivalents 20,747 19,190 Insurance receivables 86,983 55,223 Deferred acquisition costs 24,117 17,630 Present value of future profits 27,440 28,571 Accrued investment income 17,738 18,875 Property and equipment, net 14,501 14,520 Deferred income tax asset, net 26,977 29,605 Other assets 6,648 4,884 -------------------------------------------- Total assets $1,323,258 $1,260,179 ============================================ Liabilities: Reserves for losses and loss adjustment expenses for property/casualty insurance $203,614 $186,130 Reserves for policyholder contract benefits 248,978 238,272 Funds on deposit from policyholders 409,614 416,971 Unearned premium reserve 101,336 74,364 Accrued dividends to policyholders 5,334 5,263 Accrued expenses and other liabilities 24,487 23,639 Participating policyholders' interest 117,834 128,516 -------------------------------------------- Total liabilities 1,111,197 1,073,155 Mandatory redeemable preferred stock 5,830 5,830 Total stockholders' equity 206,231 181,194 -------------------------------------------- Total liabilities and stockholders' equity $1,323,258 $1,260,179 ============================================ Book Value Per Share Outstanding $34.35 $29.65 ============================================ Book Value Per Share Outstanding (excluding SFAS 115 adjustment) $34.55 $30.07 ============================================ Book Value Per Share-Diluted $33.79 $30.46 ============================================ Book Value Per Share-Diluted (excluding SFAS 115 adjustment) $33.99 $30.89 ============================================ Common Shares Outstanding 6,003,983 6,110,683 ============================================
FARM FAMILY HOLDINGS, INC. Selected Segment Information ($ in thousands) Three months ended Nine months ended September 30, September 30, 2000 1999 2000 1999 ---- ---- ---- ---- Premium revenues Property and casualty insurance $51,425 $49,398 $147,391 $142,455 Life insurance 9,338 9,055 28,321 18,351 ---------------------------------------------------- Total $60,763 $58,453 $175,712 $160,806 ==================================================== Net investment income Property and casualty insurance $5,843 $5,220 $17,114 $15,069 Life insurance 13,195 13,004 39,099 25,209 Corporate and other 37 94 186 304 Intersegment eliminations 9 25 30 37 ---------------------------------------------------- Total $19,084 $18,343 $56,429 $40,619 ==================================================== Other operating costs & expenses and amortization expense Property and casualty insurance Underwriting and amortization expenses $11,931 $11,944 $34,647 $34,580 Dividends to policyholders 56 51 144 159 Life insurance 4,620 3,324 11,655 7,356 Corporate and other 373 376 1,258 908 Intersegment eliminations (230) (225) (690) (450) ---------------------------------------------------- Total $16,750 $15,470 $47,014 $42,553 ==================================================== Operating income Property and casualty insurance $4,566 $4,439 $11,666 $12,855 Life insurance 1,024 963 3,497 1,598 Corporate and other (291) (159) (907) (504) ---------------------------------------------------- Total operating income 5,299 5,243 14,256 13,949 Effect of retroactively including Excess Interest and Spreads, net of tax ---- ---- 12,746 ---- Realized investment gains (losses), net of tax (85) (175) (351) 16 ---------------------------------------------------- Net income $5,214 $5,068 $26,651 $13,965 ==================================================== GAAP combined ratio Property and casualty insurance Loss and loss adjustment expense ratio 78.7% 75.6% 78.7% 74.9% Underwriting expense ratio 23.2% 24.2% 23.5% 24.3% ---------------------------------------------------- GAAP combined ratio 101.9% 99.8% 102.2% 99.2% ====================================================
September 30, December 31, 2000 1999 ---- ---- Identifiable Assets Property and casualty $501,409 $446,721 Life insurance 818,834 810,487 Corporate and other 68,387 71,014 Intersegment eliminations (65,372) (68,043) --------------------------- Total $1,323,258 $1,260,179 ===========================
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