The Midland Company Projects Third Quarter Profit Despite Hurricanes
October 07 2004 - 10:10AM
PR Newswire (US)
The Midland Company Projects Third Quarter Profit Despite
Hurricanes * Non-catastrophe Underwriting Results Ahead of Plan
CINCINNATI, Oct. 7 /PRNewswire-FirstCall/ -- The Midland Company
(NASDAQ:MLAN), a highly focused provider of specialty insurance
products and services, today projected a third quarter profit,
despite volatile weather conditions during the quarter. "We are
anticipating earnings per share for the third quarter to be between
11 cents and 15 cents (after-tax, diluted), which includes
approximately 1 cent for realized capital gains," said John W.
Hayden, Midland's president and chief executive officer. "We are
pleased to report that we are still on track to meet the low end of
our previously reported full-year earnings per share guidance of
$2.40 to $2.60, which includes an estimated 19 cents of realized
capital gains." Hayden also commented on the impact from hurricanes
Charley, Frances, Ivan and Jeanne. "While we are certainly saddened
by the impact that these storms have had on the residents of the
afflicted areas, we are proud that our claims team has been so
responsive in helping these folks get on with their lives. Right
now, we are estimating after-tax losses from these hurricanes,
after considering reinsurance recoveries and other
catastrophe-related items, to be approximately $18.0 million or 93
cents per share (after-tax, diluted). Typically, we would expect
third quarter catastrophe losses in the range of 25 to 30 cents per
share." Hayden continued, "We are truly encouraged to see the
positive non- catastrophe underwriting results from our core
business lines, particularly in our manufactured housing,
motorcycle, watercraft and site-built dwelling lines. These results
demonstrate the benefit of the underwriting actions we have taken
over the last several years, such as tightened underwriting
criteria and rate increases. We believe these strong
non-catastrophe underwriting results, coupled with our
comprehensive reinsurance program and disciplined underwriting
approach, demonstrate our fundamental strength and stability. We
have certainly established a solid foundation for profitable growth
for 2005 and beyond." About the Company Midland, which is
headquartered in Cincinnati, Ohio, is a provider of specialty
insurance products and services through its wholly owned
subsidiary, American Modern Insurance Group, which accounts for
approximately 96 percent of Midland's consolidated revenue.
American Modern specializes in writing physical damage insurance
and related coverages on manufactured housing and has expanded to
other specialty insurance products including coverage for
site-built homes, motorcycles, watercraft, snowmobiles,
recreational vehicles, physical damage on long-haul trucks,
extended service contracts, excess and surplus lines coverages,
credit life and related products as well as collateral protection
and mortgage fire products sold to financial institutions and their
customers. Midland also owns a niche transportation business, M/G
Transport Group, which operates a fleet of dry cargo barges for the
movement of dry bulk commodities on the inland waterways. Midland's
common stock is traded on the Nasdaq National Market under the
symbol MLAN. Additional information on the company can be found on
the Internet at http://www.midlandcompany.com/ . Forward-Looking
Statements Disclosure Certain statements made in this press release
are forward-looking and are made pursuant to the safe harbor
provisions of the Securities Litigation Reform Act of 1995. These
statements include certain discussions relating to underwriting,
premium and investment income volume, business strategies,
profitability and business relationships, as well as any other
statements concerning the year 2004 and beyond. The forward-looking
statements involve risks, uncertainties and other factors that may
cause results to differ materially from those anticipated in those
statements. Factors that might cause results to differ from those
anticipated include, without limitation, adverse weather
conditions, changes in underwriting results affected by adverse
economic conditions, fluctuations in the investment markets,
changes in the retail marketplace, changes in the laws or
regulations affecting the operations of the company or its
subsidiaries, changes in the business tactics or strategies of the
company, its subsidiaries or its current or anticipated business
partners, the financial condition of the company's business
partners, acquisitions or divestitures, changes in market forces,
litigation and the other risk factors that have been identified in
the company's filings with the SEC, any one of which might
materially affect the operations of the company or its
subsidiaries. Any forward-looking statements speak only as of the
date made. We undertake no obligation to update any forward-looking
statements to reflect events or circumstances arising after the
date on which they are made. DATASOURCE: The Midland Company
CONTACT: John I. Von Lehman, Executive Vice President and CFO of
The Midland Company, +1-513-943-7100 Web site:
http://www.midlandcompany.com/
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