Penn-America Group, Inc. (NYSE: PNG) Reports Operating Income Of $.9 Million Or $0.12 Per Share (Basic and Diluted) and Net Income of $1.0 Million or $0.13 Per Share (Basic and Diluted) for the First Quarter Of 2001

Three Month Results



Apr 25, 2001, 01:00 ET from Penn-America Group, Inc.

    HATBORO, Pa., April 25 /PRNewswire Interactive News Release/ -- Penn-
 America Group, Inc. (NYSE:   PNG) today reported operating income of
 $0.9 million or $0.12 per share (basic and diluted) for the first quarter of
 2001, compared with operating income of $1.6 million or $0.20 per share (basic
 and diluted) for the first quarter of 2000.  Net income for the first quarter
 of 2001 was $1.0 million or $0.13 per share (basic and diluted) and included a
 net realized investment gain of $.1 million or $0.01 per share (basic and
 diluted).  Net income for the first quarter of 2000 was $1.6 million or $0.20
 per share (basic and diluted) and included a net realized investment loss of
 $13,000.  The statutory combined ratio for the first quarter of 2001 was 106.9
 compared with 99.8 in the first quarter of 2000.
     Jon Saltzman, president and CEO noted, "We're resolutely committed to
 building earnings momentum quarter by quarter.  The current quarter's results,
 which represent a $0.07 per share increase over the fourth quarter of 2000,
 reflect the type of improvement that we're working hard to achieve. While
 we've made significant progress, I'm not yet satisfied with our performance
 and we will continue to implement our operating strategies with the goal of
 growing book value and producing a superior return to our shareholders."
 
     Core Commercial Lines
     Gross written premiums for core commercial lines (excluding the company's
 exited commercial automobile business) increased 1.3 percent to $22.7 million
 in the first quarter of 2001, compared with $22.4 million for the same period
 of 2000.  Net written premiums increased 0.6 percent to $20.2 million in the
 current quarter, compared with $20.1 million in the same period of 2000.
 
     Non-Standard Personal and Commercial Automobile Lines
     Gross written premiums for non-standard personal automobile lines
 decreased to $2,000 in the first quarter of 2001 compared with $1.5 million
 for the same quarter in 2000.  The company announced in January 1999 that it
 was running-off the non-standard personal automobile business, which accounts
 for the significant decline in both the gross and net written premium.  Gross
 written premium for the exited commercial automobile business decreased
 52.7 percent to $1.2 million in the first quarter of 2001 compared with
 $2.4 million in the same period of 2000.  The company announced in October,
 2000 that it was exiting the commercial automobile line.  In the first quarter
 of 2001, the company ceased issuing new policies and began non-renewing
 existing policies.
 
     Teleconference for Interested Parties
     Jon Saltzman, John DiBiasi, the insurance company's executive vice
 president for Underwriting, and Joe Morris, senior vice president and CFO will
 conduct a teleconference for interested parties today at 11:00 a.m. Eastern
 Daylight Time.  To participate, telephone 800-450-0821 a few minutes before
 11:00 a.m. and request the Penn-America conference call.  A digital recording
 of the teleconference will be available from 2:30 p.m. today through
 11:59 p.m. Eastern Daylight Time, Wednesday, May 2.  To hear the recording,
 telephone 800-475-6701 at any time during that period and use access code
 579325.  This conference call also will be broadcast live at
 www.penn-america.com.  It is being supplied by CCBN. To listen to the Web
 Cast, your computer must have Real Player installed.  If you do not have Real
 Player, go to www.penn-america.com  prior to the call, where Real Player can
 be downloaded for free.  An online replay also will be available approximately
 one hour after the call.
     Penn-America Group, Inc. (NYSE:   PNG) is a specialty commercial property
 and casualty insurance holding company.  The company's "small thinking" --
 underwriting small policies for small entrepreneurial businesses in small
 "Main Street" towns through a small network of wholesale general agents -- has
 delivered substantial long-term growth in the original "E"-business: serving
 entrepreneurs.
 
     Certain information included in this news release and other statements or
 materials published or to be published by the company are not historical facts
 but are forward-looking statements including, but not limited to, such matters
 as anticipated financial performance, business prospects, technological
 developments, new and existing products, expectations for market segment and
 growth and similar matters.  In connection with the "safe harbor" provisions
 of the Private Securities Litigation Reform Act of 1995, the company provides
 the following cautionary remarks regarding important factors which, among
 others, could cause the company's actual results and experience to differ
 materially from the anticipated results or other expectations expressed in the
 company's forward-looking statements.  The risks and uncertainties that may
 affect the operations, performance, development, results of the company's
 business and the other matters referred to above include, but are not limited
 to:  (1) changes in the business environment in which the company operates,
 including inflation and interest rates; (2) changes in taxes, governmental
 laws and regulations; (3) competitive product and pricing activity; and (4)
 difficulties of managing growth profitably.  For additional disclosure
 regarding potential risk factors, please refer to the Company's 2000 10-K.
 
 
             PENN-AMERICA GROUP, INC.  AND SUBSIDIARIES (NYSE:   PNG)
                 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                (in thousands, except per share data and ratios)
 
 
                                              Three Months Ended
                                     3/31/01        12/31/00       3/31/00
 
     Gross written premiums          $23,816         $26,679       $26,271
     Net written premiums             21,056          23,570        23,401
 
     Revenues:
       Premiums earned                23,042          24,057        21,546
       Net investment income           2,850           2,841         2,400
       Net realized investment
        gain (loss)                      102            (154)          (13)
          Total revenues              25,994          26,744        23,933
 
     Losses and expenses:
       Losses and loss adjustment
       expenses                       16,734          18,933        13,905
       Amortization of deferred
       policy acquisition costs        6,224           5,899         6,239
       Other underwriting expenses     1,534           1,410         1,430
       Corporate expenses                162             169           220
       Interest expense                   40              52            36
          Total losses and expenses   24,694          26,463        21,830
 
     Income before income tax          1,300             281         2,103
     Income tax expense (benefit)        333             (20)          520
 
        Net income                      $967            $301       $ 1,583
 
     Basic and diluted
      net income per share
     Operating income                  $0.12           $0.05         $0.20
     Net realized investment
      gain (loss)                       0.01           (0.01)            -
        Net income                     $0.13           $0.04         $0.20
 
     Cash dividend per share         $0.0525         $0.0525       $0.0525
 
     GAAP ratios:
     Loss ratio                         72.6            78.7          64.5
     Expense ratio                      33.7            30.4          35.6
     Combined ratio                    106.3           109.1         100.1
 
     Statutory ratios:
     Loss ratio                         72.6            78.7          64.5
     Expense ratio                      34.3            28.2          35.3
     Combined ratio                    106.9           106.9          99.8
 
 
             PENN-AMERICA GROUP, INC. AND SUBSIDIARIES (NYSE:   PNG)
                      SELECTED CONSOLIDATED FINANCIAL DATA
                     (In thousands, except per share data)
 
     SELECTED BALANCE SHEET DATA                    March 31,    December 31,
                                                      2001           2000
 
     Investments and cash:
       Fixed maturities:
         Available for sale                          $130,698       $125,477
         Held to maturity                              17,294         17,282
       Equity securities                               25,783         24,491
       Short term investments and cash                  5,416         11,425
                                                     $179,191       $178,675
 
 
     Reinsurance recoverable                           24,466         24,447
 
     Total assets                                     239,195        239,486
 
     Unpaid losses and loss adjustment
       expenses                                       115,542        115,314
 
     Unearned premiums                                 40,965         43,239
 
     Total liabilities                                163,925        165,435
 
     Total stockholders' equity                        75,270         74,051
 
     Total shares outstanding                           7,587          7,576
 
     Book value per share                               $9.92          $9.77
 
     Statutory policyholders' surplus                 $58,732        $55,531
 
 
 
 
             PENN-AMERICA GROUP, INC. AND SUBSIDIARIES (NYSE:   PNG)
                      SELECTED CONSOLIDATED FINANCIAL DATA
                         (In thousands, except ratios)
 
 
                  SUPPLEMENTARY STATUTORY DATA BY LINE OF BUSINESS
 
                                         Quarter Ended March 31, 2001
 
                                       Net             Net            Loss
                                     Written          Earned         and LAE
                                     Premiums        Premiums         Ratio
 
     Core commercial lines:
     Specialty property               $1,953          $1,341          72.8
     CMP - property                    7,257           7,152          82.3
     CMP - liability                   5,934           6,044          77.0
     Other & product liability         5,041           6,373          61.0
         Total core commercial        20,185          20,910          73.7
     Exited lines:
     Commercial auto liability           638           1,517         129.1
     Commercial auto P.D.                231             599          95.0
     Personal lines                        2              16             *
        Total exited lines               871           2,132          62.4
     TOTAL                           $21,056         $23,042          72.6
 
     *Not meaningful
 
 
 
                                         Quarter Ended March 31, 2000
 
                                       Net             Net            Loss
                                     Written          Earned         and LAE
                                     Premiums        Premiums         Ratio
 
     Core commercial lines:
     Specialty property               $1,403          $1,271          69.1
     CMP - property                    6,733           6,109          71.7
     CMP - liability                   5,875           5,177          56.1
     Other & product liability         6,045           5,864          63.2
         Total core commercial        20,056          18,421          64.4
     Exited lines:
     Commercial auto liability         1,327             921          67.8
     Commercial auto P.D.                562             434          58.4
     Personal lines                    1,456           1,770          65.1
         Total exited lines            3,345           3,125          64.9
     TOTAL                           $23,401         $21,546          64.5
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X51627543
 
 

SOURCE Penn-America Group, Inc.
    HATBORO, Pa., April 25 /PRNewswire Interactive News Release/ -- Penn-
 America Group, Inc. (NYSE:   PNG) today reported operating income of
 $0.9 million or $0.12 per share (basic and diluted) for the first quarter of
 2001, compared with operating income of $1.6 million or $0.20 per share (basic
 and diluted) for the first quarter of 2000.  Net income for the first quarter
 of 2001 was $1.0 million or $0.13 per share (basic and diluted) and included a
 net realized investment gain of $.1 million or $0.01 per share (basic and
 diluted).  Net income for the first quarter of 2000 was $1.6 million or $0.20
 per share (basic and diluted) and included a net realized investment loss of
 $13,000.  The statutory combined ratio for the first quarter of 2001 was 106.9
 compared with 99.8 in the first quarter of 2000.
     Jon Saltzman, president and CEO noted, "We're resolutely committed to
 building earnings momentum quarter by quarter.  The current quarter's results,
 which represent a $0.07 per share increase over the fourth quarter of 2000,
 reflect the type of improvement that we're working hard to achieve. While
 we've made significant progress, I'm not yet satisfied with our performance
 and we will continue to implement our operating strategies with the goal of
 growing book value and producing a superior return to our shareholders."
 
     Core Commercial Lines
     Gross written premiums for core commercial lines (excluding the company's
 exited commercial automobile business) increased 1.3 percent to $22.7 million
 in the first quarter of 2001, compared with $22.4 million for the same period
 of 2000.  Net written premiums increased 0.6 percent to $20.2 million in the
 current quarter, compared with $20.1 million in the same period of 2000.
 
     Non-Standard Personal and Commercial Automobile Lines
     Gross written premiums for non-standard personal automobile lines
 decreased to $2,000 in the first quarter of 2001 compared with $1.5 million
 for the same quarter in 2000.  The company announced in January 1999 that it
 was running-off the non-standard personal automobile business, which accounts
 for the significant decline in both the gross and net written premium.  Gross
 written premium for the exited commercial automobile business decreased
 52.7 percent to $1.2 million in the first quarter of 2001 compared with
 $2.4 million in the same period of 2000.  The company announced in October,
 2000 that it was exiting the commercial automobile line.  In the first quarter
 of 2001, the company ceased issuing new policies and began non-renewing
 existing policies.
 
     Teleconference for Interested Parties
     Jon Saltzman, John DiBiasi, the insurance company's executive vice
 president for Underwriting, and Joe Morris, senior vice president and CFO will
 conduct a teleconference for interested parties today at 11:00 a.m. Eastern
 Daylight Time.  To participate, telephone 800-450-0821 a few minutes before
 11:00 a.m. and request the Penn-America conference call.  A digital recording
 of the teleconference will be available from 2:30 p.m. today through
 11:59 p.m. Eastern Daylight Time, Wednesday, May 2.  To hear the recording,
 telephone 800-475-6701 at any time during that period and use access code
 579325.  This conference call also will be broadcast live at
 www.penn-america.com.  It is being supplied by CCBN. To listen to the Web
 Cast, your computer must have Real Player installed.  If you do not have Real
 Player, go to www.penn-america.com  prior to the call, where Real Player can
 be downloaded for free.  An online replay also will be available approximately
 one hour after the call.
     Penn-America Group, Inc. (NYSE:   PNG) is a specialty commercial property
 and casualty insurance holding company.  The company's "small thinking" --
 underwriting small policies for small entrepreneurial businesses in small
 "Main Street" towns through a small network of wholesale general agents -- has
 delivered substantial long-term growth in the original "E"-business: serving
 entrepreneurs.
 
     Certain information included in this news release and other statements or
 materials published or to be published by the company are not historical facts
 but are forward-looking statements including, but not limited to, such matters
 as anticipated financial performance, business prospects, technological
 developments, new and existing products, expectations for market segment and
 growth and similar matters.  In connection with the "safe harbor" provisions
 of the Private Securities Litigation Reform Act of 1995, the company provides
 the following cautionary remarks regarding important factors which, among
 others, could cause the company's actual results and experience to differ
 materially from the anticipated results or other expectations expressed in the
 company's forward-looking statements.  The risks and uncertainties that may
 affect the operations, performance, development, results of the company's
 business and the other matters referred to above include, but are not limited
 to:  (1) changes in the business environment in which the company operates,
 including inflation and interest rates; (2) changes in taxes, governmental
 laws and regulations; (3) competitive product and pricing activity; and (4)
 difficulties of managing growth profitably.  For additional disclosure
 regarding potential risk factors, please refer to the Company's 2000 10-K.
 
 
             PENN-AMERICA GROUP, INC.  AND SUBSIDIARIES (NYSE:   PNG)
                 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                (in thousands, except per share data and ratios)
 
 
                                              Three Months Ended
                                     3/31/01        12/31/00       3/31/00
 
     Gross written premiums          $23,816         $26,679       $26,271
     Net written premiums             21,056          23,570        23,401
 
     Revenues:
       Premiums earned                23,042          24,057        21,546
       Net investment income           2,850           2,841         2,400
       Net realized investment
        gain (loss)                      102            (154)          (13)
          Total revenues              25,994          26,744        23,933
 
     Losses and expenses:
       Losses and loss adjustment
       expenses                       16,734          18,933        13,905
       Amortization of deferred
       policy acquisition costs        6,224           5,899         6,239
       Other underwriting expenses     1,534           1,410         1,430
       Corporate expenses                162             169           220
       Interest expense                   40              52            36
          Total losses and expenses   24,694          26,463        21,830
 
     Income before income tax          1,300             281         2,103
     Income tax expense (benefit)        333             (20)          520
 
        Net income                      $967            $301       $ 1,583
 
     Basic and diluted
      net income per share
     Operating income                  $0.12           $0.05         $0.20
     Net realized investment
      gain (loss)                       0.01           (0.01)            -
        Net income                     $0.13           $0.04         $0.20
 
     Cash dividend per share         $0.0525         $0.0525       $0.0525
 
     GAAP ratios:
     Loss ratio                         72.6            78.7          64.5
     Expense ratio                      33.7            30.4          35.6
     Combined ratio                    106.3           109.1         100.1
 
     Statutory ratios:
     Loss ratio                         72.6            78.7          64.5
     Expense ratio                      34.3            28.2          35.3
     Combined ratio                    106.9           106.9          99.8
 
 
             PENN-AMERICA GROUP, INC. AND SUBSIDIARIES (NYSE:   PNG)
                      SELECTED CONSOLIDATED FINANCIAL DATA
                     (In thousands, except per share data)
 
     SELECTED BALANCE SHEET DATA                    March 31,    December 31,
                                                      2001           2000
 
     Investments and cash:
       Fixed maturities:
         Available for sale                          $130,698       $125,477
         Held to maturity                              17,294         17,282
       Equity securities                               25,783         24,491
       Short term investments and cash                  5,416         11,425
                                                     $179,191       $178,675
 
 
     Reinsurance recoverable                           24,466         24,447
 
     Total assets                                     239,195        239,486
 
     Unpaid losses and loss adjustment
       expenses                                       115,542        115,314
 
     Unearned premiums                                 40,965         43,239
 
     Total liabilities                                163,925        165,435
 
     Total stockholders' equity                        75,270         74,051
 
     Total shares outstanding                           7,587          7,576
 
     Book value per share                               $9.92          $9.77
 
     Statutory policyholders' surplus                 $58,732        $55,531
 
 
 
 
             PENN-AMERICA GROUP, INC. AND SUBSIDIARIES (NYSE:   PNG)
                      SELECTED CONSOLIDATED FINANCIAL DATA
                         (In thousands, except ratios)
 
 
                  SUPPLEMENTARY STATUTORY DATA BY LINE OF BUSINESS
 
                                         Quarter Ended March 31, 2001
 
                                       Net             Net            Loss
                                     Written          Earned         and LAE
                                     Premiums        Premiums         Ratio
 
     Core commercial lines:
     Specialty property               $1,953          $1,341          72.8
     CMP - property                    7,257           7,152          82.3
     CMP - liability                   5,934           6,044          77.0
     Other & product liability         5,041           6,373          61.0
         Total core commercial        20,185          20,910          73.7
     Exited lines:
     Commercial auto liability           638           1,517         129.1
     Commercial auto P.D.                231             599          95.0
     Personal lines                        2              16             *
        Total exited lines               871           2,132          62.4
     TOTAL                           $21,056         $23,042          72.6
 
     *Not meaningful
 
 
 
                                         Quarter Ended March 31, 2000
 
                                       Net             Net            Loss
                                     Written          Earned         and LAE
                                     Premiums        Premiums         Ratio
 
     Core commercial lines:
     Specialty property               $1,403          $1,271          69.1
     CMP - property                    6,733           6,109          71.7
     CMP - liability                   5,875           5,177          56.1
     Other & product liability         6,045           5,864          63.2
         Total core commercial        20,056          18,421          64.4
     Exited lines:
     Commercial auto liability         1,327             921          67.8
     Commercial auto P.D.                562             434          58.4
     Personal lines                    1,456           1,770          65.1
         Total exited lines            3,345           3,125          64.9
     TOTAL                           $23,401         $21,546          64.5
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X51627543
 
 SOURCE  Penn-America Group, Inc.