National Security Group Reports on 13 Cat Losses in First Half of 2017
The National Security Group, Inc., which offers property, casualty, life, accident and health insurance in ten states, released estimates of year to date catastrophe losses through June 30, 2017 incurred by property and casualty subsidiary National Security Fire & Casualty.
During the three-month period ended June 30, 2017 (second quarter), property and casualty subsidiary, National Security Fire & Casualty Company (NSFC), was impacted by 13 catastrophe events which produced 958 reported policyholder claims by the end of the second quarter. Estimated losses from second quarter catastrophe events are expected to be approximately $4,774,000. Net of tax, these losses are expected to reduce second quarter net income by $3,151,000 or $1.25 per share. In comparison, NSFC was impacted by seven catastrophe events during the second quarter of 2016 leading to 417 catastrophe related policyholder claims totaling $2,036,000. Net of tax, second quarter 2016 catastrophe losses reduced net income by $1,344,000 or $0.53 per share.
During the six-month period ended June 30, 2017, National Security Fire & Casualty Company was impacted by 21 catastrophe events producing 1,856 policyholder claims with estimated losses expected to be approximately $9,178,000. Net of tax, these losses are expected to reduce earnings for the six-month period ended June 30, 2017 by approximately $6,057,000 or $2.41 per share. In comparison, NSFC was impacted by 13 catastrophe events from 802 claims totaling $3,483,000 for the six-month period ended June 30, 2016. Net of tax, 2016 catastrophe losses reduced net income for the six-month period ended June 30, 2016 by $2,299,000 or $0.91 per share.
A prolonged pattern of severe weather in 2017, which commenced in early January and continued into June, has been widespread, impacting each state in which we operate and much of North America. Unfortunately, this pattern of increased frequency of severe thunderstorm activity in 2017 will materially impact our second quarter and year to date earnings. We have set August 11, 2017 as our scheduled release date for our second quarter and year to date financial results through June 30, 2017.
Source: The National Security Group, Inc.
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