National Security Group Inc. (NSEC, Financial) filed Quarterly Report for the period ended 2010-09-30.
National Security Group Inc. has a market cap of $28 million; its shares were traded at around $11.346 with a P/E ratio of 5.3 and P/S ratio of 0.4. The dividend yield of National Security Group Inc. stocks is 5.3%.
For the three-month period ended September 30, 2010, income tax benefit totaled $255,000 compared to an income tax benefit of $103,000 for the same period last year. The tax effect of significant items reducing income taxes in 2010 included the change in value of company owned life insurance, with tax benefit of $66,000 and tax free investment income, with tax benefit of $47,000. The tax effect of significant items reducing income taxes in 2009 included the change in value of company owned life insurance, which produced tax benefit of $147,000, tax free investment income, which produced tax benefit of $48,000, and the small life deduction, with a tax benefit of $40,000.
For the nine-months ended September 30, 2010, premiums earned were $46,189,000 compared to $44,950,000 for the same period last year; an increase of 2.8%. The Life segment ended the first nine months of 2010 with premium revenue of $5,449,000 compared to $5,504,000 for the same period last year. Year-to-date premiums earned for NSIC were down due to a $126,000 decline in production of traditional life insurance products. NSIC continued to see growth in its accident and health lines of business which increased $71,000 or 5.0%, year-to-date compared to the same period last year.
The Company ended the first nine months of 2010 with realized capital gains of $1,433,000 compared to a realized capital loss totaling $151,000 for the same period last year. During the current year, the life and P&C segments realized investment gains totaling $388,000 and $971,000, respectively, compared to realized losses totaling $197,000 and gains of $44,000, respectively during 2009. Capital gains during 2010 have been primarily generated from the sale of corporate bonds in the portfolio. A combination of declining interest rates and tightening yield spreads on corporate bonds have contributed to significant price appreciation over the past year in the corporate bond portfolio and selective reductions in holdings have generated the increase in capital gains. The primary reason for the realized investment loss in 2009 relates to the other-than-temporary impairments recognized in both the life and P&C segments during the second quarter of 2009. The life segment recognized losses on other-than-temporary impairments totaling $195,000 due to the write-down in value of a CIT Group bond while the property and casualty segment recognized losses on other-than-temporary impairments totaling $88,000 due to the write-down of a General Motors asset backed security.
For the nine-month period ended September 30, 2010, income tax expense totaled $888,000 compared to $217,000 for the same period last year. Income tax expense in the current year resulted in an effective tax rate of 23.3% compared to the statutory rate of 34%. Significant items reducing income taxes for 2010 included tax free investment income, with a tax benefit of $137,000 (3.6 percentage points), the change in value of company owned life insurance, with a tax benefit of $101,000 (2.7 percentage points), and the small life deduction with a tax benefit of $101,000 (2.6 percentage points). Income tax expense for the same period last year resulted in an effective tax rate of 8.9%. Significant items reducing income taxes in 2009 were the change in value of company owned life insurance, with a tax benefit of $223,000 (9.2 percentage points), the small life deduction, with a tax benefit of $204,000 (8.4 percentage points ) and tax free investment income, with a tax benefit of $180,000 (7.4 percentage points).
At September 30, 2010, the Company had aggregate equity capital, unrealized investment gains (net of income taxes) and retained earnings of $44,870,000, up $3,702,000 compared to December 31, 2009. Factors contributing to the change in equity were year-to-date net income of $2,931,000, recoveries in market values of fixed maturities and equity securities of $2,312,000, a net loss on interest rate swaps of $431,000 and dividends paid of $1,110,000.
Read the The complete Report
National Security Group Inc. has a market cap of $28 million; its shares were traded at around $11.346 with a P/E ratio of 5.3 and P/S ratio of 0.4. The dividend yield of National Security Group Inc. stocks is 5.3%.
Highlight of Business Operations:
For the quarter ended September 30, 2010, the Company had net income of $223,000 compared to net income of $651,000 for the same period last year. The most significant factors contributing to the decline in the third quarter of 2010 were a $965,000 increase in policyholder benefits paid or provided coupled with a $309,000 increase in general expenses. The 10.6% increase in policyholder benefits paid or provided was largely related to a $659,000 increase in losses paid during the third quarter of 2010 compared to the same period last year in the P&C segment in addition to the $320,000 increase in death and maturity benefits in the Life segment for the same time period. The 12.4% increase in general expenses was primarily related to litigation expense of the holding company. Positively impacting the quarter were an $891,000 (6.2%) increase in net premiums earned as well as a $350,000 (10.2%) reduction in policy acquisition costs.For the three-month period ended September 30, 2010, income tax benefit totaled $255,000 compared to an income tax benefit of $103,000 for the same period last year. The tax effect of significant items reducing income taxes in 2010 included the change in value of company owned life insurance, with tax benefit of $66,000 and tax free investment income, with tax benefit of $47,000. The tax effect of significant items reducing income taxes in 2009 included the change in value of company owned life insurance, which produced tax benefit of $147,000, tax free investment income, which produced tax benefit of $48,000, and the small life deduction, with a tax benefit of $40,000.
For the nine-months ended September 30, 2010, premiums earned were $46,189,000 compared to $44,950,000 for the same period last year; an increase of 2.8%. The Life segment ended the first nine months of 2010 with premium revenue of $5,449,000 compared to $5,504,000 for the same period last year. Year-to-date premiums earned for NSIC were down due to a $126,000 decline in production of traditional life insurance products. NSIC continued to see growth in its accident and health lines of business which increased $71,000 or 5.0%, year-to-date compared to the same period last year.
The Company ended the first nine months of 2010 with realized capital gains of $1,433,000 compared to a realized capital loss totaling $151,000 for the same period last year. During the current year, the life and P&C segments realized investment gains totaling $388,000 and $971,000, respectively, compared to realized losses totaling $197,000 and gains of $44,000, respectively during 2009. Capital gains during 2010 have been primarily generated from the sale of corporate bonds in the portfolio. A combination of declining interest rates and tightening yield spreads on corporate bonds have contributed to significant price appreciation over the past year in the corporate bond portfolio and selective reductions in holdings have generated the increase in capital gains. The primary reason for the realized investment loss in 2009 relates to the other-than-temporary impairments recognized in both the life and P&C segments during the second quarter of 2009. The life segment recognized losses on other-than-temporary impairments totaling $195,000 due to the write-down in value of a CIT Group bond while the property and casualty segment recognized losses on other-than-temporary impairments totaling $88,000 due to the write-down of a General Motors asset backed security.
For the nine-month period ended September 30, 2010, income tax expense totaled $888,000 compared to $217,000 for the same period last year. Income tax expense in the current year resulted in an effective tax rate of 23.3% compared to the statutory rate of 34%. Significant items reducing income taxes for 2010 included tax free investment income, with a tax benefit of $137,000 (3.6 percentage points), the change in value of company owned life insurance, with a tax benefit of $101,000 (2.7 percentage points), and the small life deduction with a tax benefit of $101,000 (2.6 percentage points). Income tax expense for the same period last year resulted in an effective tax rate of 8.9%. Significant items reducing income taxes in 2009 were the change in value of company owned life insurance, with a tax benefit of $223,000 (9.2 percentage points), the small life deduction, with a tax benefit of $204,000 (8.4 percentage points ) and tax free investment income, with a tax benefit of $180,000 (7.4 percentage points).
At September 30, 2010, the Company had aggregate equity capital, unrealized investment gains (net of income taxes) and retained earnings of $44,870,000, up $3,702,000 compared to December 31, 2009. Factors contributing to the change in equity were year-to-date net income of $2,931,000, recoveries in market values of fixed maturities and equity securities of $2,312,000, a net loss on interest rate swaps of $431,000 and dividends paid of $1,110,000.
Read the The complete Report
