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AMERICAN PHYSICIANS SERVICE GROUP, INC. REPORTS
EXCELLENT SECOND QUARTER EARNINGS
AUSTIN, TX (MARKET WIRE) August 4, 2009 American Physicians Service Group, Inc. (APS) (NASDAQ: AMPH) today announced results for the quarter and six months ended June 30, 2009. For the three months ended June 30, 2009, revenues were $20.1 million compared to $17.8 million for the same period last year. For the six months ended June 30, 2009, revenues were $39.4 million compared to $37.5 million in the same period last year. Net earnings for the first six months were $9.7 million or $1.36 per diluted share, compared to $9.5 million or $1.30 per diluted share in the same period last year. Net earnings for the second quarter were $4.9 million or $.70 per diluted share, compared to $6.1 million or $.84 per diluted share, in the same period last year.
Ken Shifrin, APS Chairman of the Board, stated, We continue to deliver excellent performance results. Revenue was up 13% quarter-over-quarter, underwriting profits were solid, our Financial Services subsidiary had its first profitable quarter since the economic downturn began toward the end of 2007 and our book value per share increased to a record $20.88, even while paying our sixth consecutive annual dividend during the quarter. It was also gratifying to have some outside recognition of our performance with inclusion in the Russell 3000 index and a sixth place ranking on Fortunes Small Business 100 list.
Tim LaFrey, President of APS, added, Favorable trends continued in our insurance operations. Net earned premium was up 15% compared to the second quarter of 2008, a result of a strong 92% retention rate, new business growth and lower ceding under our 2009 reinsurance treaty. Likewise, claims frequency continues to be favorable and outstanding claims continue to fall. We remain conservatively reserved at the upper end of the actuarial range and our reserve per open claim has increased over 18% since June 30, 2008, though we have not seen an adverse trend in claims frequency or severity. We have still experienced no defaults of principal or interest in our investment portfolio, but have continued to take a defensive position regarding non-agency CMOs and have reduced our holdings from $25 million at year-end to $8 million at the end of June. We believe that benefits from safeguarding our capital outweigh the sacrifice in short-term yield.
Mr. LaFrey continued, Our Financial Services business had been in a loss situation since the economic crisis began in late 2007, but our cost cutting efforts and a modest uptick in activity generated a small profit this quarter. We will continue to monitor costs closely and work to restore this segments contribution to our success.
Mr. Shifrin concluded, We continue to strengthen our balance sheet, which permits us to reward shareholders with dividends and make share repurchases without limiting our ability to take advantage of business opportunities. We look forward to reporting our progress as we move into the second half of 2009.
APS is an insurance and financial services firm with subsidiaries and affiliates which provide medical malpractice insurance for physicians and other healthcare providers and brokerage and investment services to institutions and high net worth individuals. APS is headquartered in Austin, Texas.
The following information was filed by American Physicians Service Group Inc on Tuesday, August 4, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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