American Safety’s first quarter 2000 included a net operating loss of $1.8 million, compared to earnings of $1.7 million for the first quarter 1999.
However, net premiums for first quarter 2000 increased 116 percent to $5.3 million and total revenues increased 54 percent to $7.6 million.
“Obviously, we are disappointed in the events that occurred with our recent acquisition of an insurance agency and its two related insurance companies,” said Lloyd A. Fox, American Safety’s president and CEO. “While our financial results have been negatively impacted by the charge that we have taken, we believe that the legal action taken are in the best interests of our company and its shareholders.”
In January, American Safety Holdings acquired the stock of L&W Holdings Inc. along with its wholly owned subsidiary, RCA Syndicate #1, Ltd, an Illinois licensed insurance carrier operating on the INEX (formerly the Illinois Insurance Exchange). Also acquired was the stock of Principal Management Inc., an insurance program development and management group headquartered in Okemos, Mich.
In late April, American Safety Insurance Group filed a lawsuit to rescind its acquisition.
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