TORONTO, Nov. 13, 2001 (PRIMEZONE) -- Goran Capital Inc. (OTCBB:GNCNF) (TSE:GNC), a leading specialty insurer, reported third quarter results for 2001.
For the three months ended September 30, 2001, the Company reported a net loss of $(9,041,000), or $(1.57) per share, as compared to a net loss of $(25,911,000), or $(4.49) per share for the same period in 2000. Income before taxes and distributions on Preferred Securities from continuing operations was a loss of $(6,558,000), or $(1.14) per share, for the three months ended September 30, 2001 as compared to a loss of $(10,658,000), or $(1.85) per share for the same period in 2000.
For the nine months ended September 30, 2001, the Company reported a net loss of $(24,684,000), or $(4.28) per share, as compared to a net loss of $(34,649,000), or $(5.94), per share for the same period in 2000. Income before taxes and distributions on Preferred Securities from continuing operations was a loss of $(14,834,000), or $(2.57) per share, for the nine months ended September 30, 2001 as compared to a loss of $(19,818,000), or $(3.39) per share for the same period in 2000.
Goran Capital Inc. owns insurance companies principally in the non-standard automobile insurance market. Visit the Company's Web sites at www.gorancapital.com and www.sigins.com.
The Company filed its results for the third quarter of 2001 on Form 10-Q with the SEC today. This information may be accessed on the Edgar web site database at www.sec.gov/.
"Forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. A variety of factors could cause the Company's actual results to differ from the reported results expressed in such forward-looking statements. Investors are referred to the Company's Forward Looking Statements and Certain Risks (Part I, Item 2 to the Company's Form 10-Q for the period ended September 30, 2001), which statements are incorporated into this news release by reference.
GORAN CAPITAL INC.
Consolidated Financial Highlights
(in thousands, except per share data)
Three Months Ended
September 30
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2001 2000
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Gross premiums written $ 27,348 $ 45,851
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Net premiums written $ 14,684 $ 32,180
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Revenue:
Premiums earned $ 22,943 $ 34,176
Fee income 4,220 3,386
Net investment income 1,715 2,594
Net realized capital loss 793 (2,632)
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Total revenue 29,671 37,524
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Expenses:
Loss and loss adjustment
expenses 19,859 29,035
Policy acquisition and
general and administrative
expenses 15,696 18,694
Amortization of intangibles 674 453
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Total expenses 36,229 48,182
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Loss before income tax
and minority interest (6,558) (10,658)
Provision for income tax 0 --
Distribution payable on
preferred shares 2,483 2,866
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Net loss from continuing
operations (9,041) (13,524)
Net earnings (loss) from
discontinued operations 0 (12,387)
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Net loss $ (9,041) $(25,911)
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Net loss per share from
continuing operations -
basic and fully diluted $ (1.57) $ (2.34)
Net earnings (loss) per
share from discontinued
operations - basic and
fully diluted $ -- $ (2.15)
Net loss per share -
basic and fully diluted $ (1.57) $ (4.49)
Weighted average shares
outstanding - basic
and fully diluted 5,772 5,776
Ratios - GAAP
Loss and loss adjustment
expenses 86.6% 85.0%
Operating expenses,
net of billing fees 50.0% 44.8%
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Combined 136.6% 129.8%
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September 30 December 31,
2001 2000
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Total Investments $ 94,969 $ 148,890
Total Assets $ 570,367 $ 440,032
Loss and Loss Adjustment
Expense Reserves $ 90,776 $ 113,149
Total Shareholders Deficit $ (78,332) $ (72,668)
Shares Outstanding 5,772 5,776
Book Deficit per Share $ (13.57) $ (12.58)
Nine Months Ended
September 30
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2001 2000
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Gross premiums written $ 125,636 $ 135,742
Net premiums written $ 59,331 $ 84,202
Revenue:
Premiums earned $ 68,198 $ 117,126
Fee income 10,876 10,997
Net investment income 5,236 8,406
Net realized capital loss (283) (3,949)
Total revenue 84,027 132,580
Expenses:
Loss and loss adjustment
expenses 59,494 93,194
Policy acquisition and
general and administrative
expenses 38,634 57,771
Amortization of intangibles 733 1,433
Total expenses 98,861 152,398
Loss before income tax and
minority interest (14,834) (19,818)
Provision for income tax -- 487
Distribution payable on
preferred shares 7,694 9,113
Net loss from continuing
operations (22,528) (29,418)
Net earnings (loss) from
discontinued operations (2,156) (5,231)
Net loss $ (24,684) $ (34,649)
Net loss per share from
continuing operations -
basic and fully diluted $ (3.90) $ (5.04)
Net earnings (loss) per
share from discontinued
operations - basic and
fully diluted $ (0.37) $ (0.90)
Net loss per share -
basic and fully diluted $ (4.28) $ (5.94)
Weighted average shares
outstanding - basic and
fully diluted 5,775 5,838
Ratios - GAAP
Loss and loss adjustment
expenses 87.2% 79.6%
Operating expenses, net
of billing fees 40.7% 39.9%
Combined 127.9% 119.5%