1998 Annual Report Highlights
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|
 |
|
Financial Highlights (dollars in thousands, except per-share
data)
|
As of or for the year
ended December 31, |
1998 |
1997 |
%
Change |
|
|
|
|
|
Total Revenues |
$209,961 |
$183,735 |
14.3% |
| Premiums Earned |
$157,976 |
$133,866 |
18.0% |
| Gross Premiums
Written |
$164,510 |
$135,583 |
21.3% |
| Net Investment
Income |
$
40,367 |
$ 42,716 |
(5.5)% |
| Realized Investment
Gains |
$11,129 |
$ 6,602 |
68.6% |
| Net Income |
$
36,976 |
$ 32,176 |
14.9% |
| Basic Earnings Per Share of
Common Stock |
$
3.06 |
$ 2.66 |
15% |
| Cash Dividends |
$
0.24 |
$ 0.20 |
20.0% |
| GAAP Combined Ratio |
101.6% |
105.6% |
(3.8)% |
| Total Investments at Market
Value |
$793,616 |
$785,664 |
1.0% |
| Total Assets |
$921,469 |
$888,449 |
3.7% |
| Total Stockholders'
Equity |
$386,518 |
$361,115 |
$7.0% |
| Book Value Per
Share |
$
32.54 |
$ 29.41 |
10.6% |
Through
our acquisition of the medical malpractice business of Fremont
Indemnity Company and our alliance with independent insurance agency
Poe & Brown, SCPIE wrote more policies in 1998 than ever before.
This, in turn, favorably impacted gross premiums written – which
increased by 21.3% over 1997.
Book value per share rose 10.6% in 1998. This figure has steadily
increased over the past three years. Since 1997, the company has
repurchased nearly 500,000 shares of its common stock in the open
market. |
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|
| 1998 Operational Overview
Executive
Negotiated lease for Century City office space, a move that
allows for expansion while enhancing efficiency by consolidating all
headquarters staff into one building. • Paid regular quarterly cash
dividend to stockholders for each quarter in 1998.
Actuarial /
Operations
Filed insurance rates and policy forms in
eight new states, bringing the total number of states where premium
rates are filed to 21. • Became eligible to write Excess and Surplus
lines business in 24 states through subsidiary American Healthcare
Specialty Insurance Company (AHSIC). • Continued to file forms for new
or enhanced products throughout the nation.
Finance
Posted premiums
earned of $158.0 million, an increase of 18%. • Posted total assets of
$921.5 million, an increase of 4%. • Posted combined ratio of 101.6%,
a decrease of 4%.
Communications
Published
company's first full-color corporate brochure. • Published "Becoming a
SCPIE Preferred Broker," a handbook to help familiarize insurance
brokers with the company. • Continued to enhance SCPIE Online, the company's
information-packed website.
Marketing
Repositioned department to integrate new strategy of selling
insurance policies through brokers rather than direct. • Made plans
to open a new office in Phoenix, Arizona (opened January 1, 1999),
to pursue new business opportunities in that area. • Enhanced
Directors & Officers Program. • Began writing business through
brokers for the SCPIE Dentist Select program.
Underwriting
Expanded
department from two units to four. One of the new units focuses on
developing new products, and the other focuses on servicing the
company's new clients – the brokers and policyholders resulting from
the acquisition of Fremont Indemnity Company's medical malpractice
business. • Created two new products – Healthcare Facility Policy
and the Healthcare Providers Policy. • Insured policyholders in four
states through Poe & Brown's Physicians Protector Plan.
Policyholder
Services
Continued to provide individual account
servicing for solo and small-group physicians.
Claims
Opened new office
in Tampa, Florida, and made plans to open an office in Sacramento,
California, in early 1999. • Reduced claims expenses and indemnity
paid by 7% through proactive claims management. • Received favorable
outcomes for our insureds in 82% of cases that went to trial.
Risk
Management
Conducted educational seminars in several
Southeastern states, in addition to ongoing seminars throughout
California. • Expanded department's scope to assist nonphysician
insureds in several new states. • Fielded more than 6,000 calls on
our 24-hour Hotline.
MIS
Completed 98% of
Year 2000 (Y2K) modifications. • Upgraded computer network from
digital transmission to frame relay technology, which has not only
increased speed, but is also more reliable and less expensive. •
Improved communication throughout the company (including branch
offices) by developing a wide area network (WAN) and local area
network (LAN). • Modified database programs to include company,
product and state reporting codes to accommodate product expansion
in new states. | |
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Letter to
Stockholders
 Although
1998 was a difficult year for the medical malpractice insurance
industry, SCPIE emerged more robust than ever. At SCPIE Holdings
Inc., we are approaching the new millennium with optimism,
confidence and enthusiasm.
On the insurance front, an overcapacity in the
marketplace for the past several years has brought cutthroat
competition – in particular, pricing that makes no sense whatsoever.
For many companies, the name of the game in 1998 was body count and
market share, even if that meant not reserving adequately, resulting
in fiscal irresponsibility.
SCPIE did not – and will not – fall into that trap. Our focus
isn't on body count; it's on attracting the right insureds at the
right premiums to have a profitable book of business. That's why we
have stringent underwriting requirements to be accepted for
coverage.
As the financial data in this report shows, SCPIE Holdings Inc.
enjoyed a very healthy 1998. Our total revenues rose 14% over the
prior year to $210.0 million, including premiums earned of $158.0
million. Our loss ratio and combined (loss and expense) ratio both
point to a strong showing. Another positive indication is the
continuing growth in the book value of our stock (NYSE: SKP), which rose
from $29.41 at the beginning of the year to $32.54 at year's end.
In large measure, such positive results are testament to the
experience, expertise and diligence of our Underwriting and
Actuarial departments. They also reflect the efforts of our Claims
Department, which has established comprehensive
litigation-management guidelines for defense attorneys. In 1998,
these guidelines helped us achieve extremely cost-effective claims
handling – either by prompt and equitable settlements or, when cases
were defensible, by speedy resolutions through dismissals or trials.
A Year of Dynamic
Growth
Focusing on the numbers in our financial
columns doesn't mean we have ignored the numbers in our roster of
policyholders. Despite the fierce market conditions, we've
maintained our solid core of approximately 10,000 physician insureds
in California. And in 1998, we actually made substantial additions
to our policyholder list, both inside and outside our home
state.
SCPIE now insures more than 12,500
physicians and other healthcare providers in 15 states and the
District of Columbia. Most of the new policyholders came to us as a
result of our early-1998 acquisition of Fremont Indemnity's medical
malpractice book of business – which also gave us an invaluable
network of 300 brokers. (We're highly selective in setting up our
national broker network, picking only brokers who specialize in
healthcare liability insurance.) Furthermore, our alliance with Poe
& Brown, Inc., one of the nation's leading independent insurance
agency organizations, has continued to expand our customer base in
Connecticut, Florida, Georgia and Louisiana.
Last year also witnessed dramatic growth in our product
offerings. We introduced a Healthcare Providers Policy that covers a
broad range of professionals – including chiropractors and
podiatrists, two groups strongly represented among the former
Fremont insureds. Also in 1998, we began marketing a new Healthcare
Facility Policy designed to insure more than 30 types of healthcare
facilities – everything from blood banks to pharmacies to
surgicenters. Moreover, we introduced an improved Directors &
Officers Policy with increased limits of liability and a more
competitive rating plan. Several policies to cover a range of
business-operations risks currently are under development.
In addition to expanding our product offerings, our geographic
expansion continued apace in 1998. At the end of the year, we signed
(effective January 1, 1999) a major Northern California integrated
healthcare system made up of more than 400 member physicians. This
is especially gratifying because it gives us a foothold in an area
of California we have not penetrated to any significant extent –
until now.
Outside California, we are licensed in 45 states and the District
of Columbia. (Our strategic plan, formulated just two years ago, set
out a five-year time frame for achieving this kind of national
reach.) During 1998, regulatory approvals for various SCPIE products
were obtained in Arizona, Colorado, Connecticut, Florida, Georgia,
Idaho, Illinois, Missouri, Ohio, Oklahoma and Utah.
Right Course, Bright
Future
What does the future hold for SCPIE Holdings
Inc.? We are convinced that our philosophy of striving for steady
growth is right for us, our policyholders and our stockholders. We
will keep following prudent strategies that will bring us more of
such growth in future years. Bottom line: We intend to continue on
the course we've established and run SCPIE as a profitable
enterprise.
Frankly, one disappointment we experienced in 1998 was a dearth
of solid acquisition opportunities – which was not for a lack of
seeking them out on our part. We'll continue to look in 1999,
although we believe the time may be more ripe two to three years
from now, when unsustainable pricing in the industry will inevitably
lead to additional consolidation and even the demise of some
players.
A final note: For the past eight years, our headquarters staff
has been operating in two separate buildings in Beverly Hills. Now
we've taken over four complete floors in a high-rise office building
in Century City, a hub of corporate business activity in Los
Angeles. Having more than 200 SCPIE employees in our national
headquarters office under one roof will enable us to operate even
more efficiently and effectively.
We're confident that moving into our new corporate headquarters
is only the first of many accomplishments for SCPIE Holdings Inc. in
1999!
Mitchell S. Karlan
MD
Chairman of the Board
Donald J. Zuk
President and Chief
Executive Officer
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1998 in Review: Taking
Stock of an Excellent Year
For SCPIE Holdings Inc., 1998 was a year
of transition and many achievements. In our second year as a public
company traded on the prestigious New York Stock Exchange,
SCPIE experienced impressive financial results, expansion of our
product line and the formation of a national distribution network –
with the latter nearly tripling our geographic reach.
|
To have the most effective and immediate
impact on a national basis, SCPIE developed a distribution system
that relies on established brokers, who already have clients in
place, to sell and market our products.
When SCPIE went public in
1997, our goal was to obtain the capital necessary to transform us
from a regional medical malpractice insurer into a national
professional liability insurer dedicated to the healthcare industry.
In 1998, we took major steps toward that goal. Notably, we acquired
a book of business from one company and formed an alliance with
another. Together, these two agreements catapulted SCPIE from four
states into a total of 15 and provided a firm foundation for the
company's future expansion.
Growing Across The
Nation
When SCPIE acquired Fremont Indemnity Company's
medical malpractice business on January 1, 1998, it obtained exactly
what was needed to propel its national growth – an established
broker distribution network. With the stroke of a pen, the company
gained more than 300 brokers in several states where it had never
done business, thousands of new policyholders and 35 new employees.
This important acquisition marked the company's first step in its
transition from a direct writer of insurance to one that relies
heavily on brokers and agents to sell its products across the
country.
SCPIE's other agreement, an alliance with national independent
insurance agency Poe & Brown, Inc., was also significant,
because it was the company's first relationship with a Managing
General Underwriter (MGU). Through this arrangement, SCPIE (through
subsidiary American Healthcare Indemnity Company) provides the
professional liability coverage for Poe & Brown physician and
medical group clients in Connecticut, Florida, Georgia and
Louisiana, while Poe & Brown conducts the marketing,
underwriting, servicing and billing functions for its accounts. As a
result of the success of this relationship over the past year, the
companies plan to team up in several other states in 1999.
Prudently and at the right pace, SCPIE
has been opening up branch offices in areas that make the most
business sense. In mid-1998, the company opened a claims office in
Tampa, Florida, and in early 1999, it opened one in Sacramento,
California – to efficiently service the claims against our insureds
in these areas. Also in early 1999, the company established a
marketing office in Phoenix, Arizona. As of the first quarter 1999,
SCPIE had five Claims and three Marketing branch offices in various
parts of the United States.
In California, the company itself also continued to grow. To
accommodate its increasing staff, SCPIE decided to relocate its
Beverly Hills headquarters to greatly expanded space in Century
City, a major center of commerce in the Los Angeles area. The move –
which occurred in March 1999 – should boost operational
efficiencies, enhance the spirit of teamwork among the nearly 220
headquarters staff members who were previously split between two
buildings, and allow for the company's anticipated growth over the
next decade.
Expanding Our Product
Line
In addition to expanding geographically in 1998,
SCPIE also broadened its product offerings to include policies for
many new types of healthcare providers. Through our SCPIE Dentist
Select program, we wrote policies for our first dental professional
insureds. Further, through the Fremont acquisition, chiropractors,
podiatrists and nonstandard physicians also joined SCPIE's roster.
In June 1998, the California Department of Insurance approved a
new Healthcare Facility Policy and, in September, a new Healthcare
Providers Policy. The Healthcare Facility Policy covers more than 30
types of facilities, such as medical laboratories, X-ray and imaging
centers and urgent care centers; the Healthcare Providers Policy
covers a variety of providers, such as chiropractors, podiatrists,
physical therapists and physician assistants. Both of these new
products are multiuse policies that will accommodate several types
of insureds. As a result, paperwork is streamlined for brokers, who
now need to use only one form instead of many.
Moreover, to address the needs of today's health-care corporation
managers, SCPIE retooled its six-year-old Directors & Officers
(D&O) Program in 1998. This improved policy offers important new
benefits, such as direct underwriting by SCPIE, increased limits of
liability and a more competitive rating plan. By introducing new and
enhanced products, SCPIE continues to secure its position as a
leader in the professional liability insurance industry.
Also, at the end of 1998 SCPIE became
eligible to write insurance on a nonadmitted basis in 25 states
through subsidiary American Healthcare Specialty Insurance Company
(AHSIC). As a result, the company can now write risks through three
subsidiaries – the other two being SCPIE Indemnity Company and
American Healthcare Indemnity Company (AHI). Having the flexibility
to write policies on an admitted or nonadmitted basis provides SCPIE
with an important competitive edge in the marketplace.
Running An Efficient,
Service-Oriented Operation
Since our genesis, SCPIE
has been renowned as a company of the highest caliber – a reputation
achieved largely through the personal, efficient service we have
provided our insureds over the past 23 years. To address the needs
of our growing base of insureds and brokers, every department at
SCPIE has adjusted its internal operations for optimal efficiency
and service.
For example, our Underwriting Department has added two
specialized units – one to create new products and the other to
service our growing network of brokers; our Risk Management and
Policyholder Services departments have expanded their expertise to
assist our growing number of policyholders throughout the nation;
our Claims Department has opened two branch offices to more directly
process claims; and our Marketing Department has repositioned itself
to assist brokers and agents in their sales efforts.
Until a few years ago, we offered a
single product for physicians only. Today, we offer multiple
products for a variety of additional insureds – dentists,
chiropractors, podiatrists and other healthcare providers.
To further enhance efficiency, SCPIE has allocated the resources
necessary to develop a computer infrastructure that will serve us
well into the new millennium. SCPIE's Management Information Systems
(MIS) Department upgraded the company's main computer network from
digital transmission to frame relay technology. As a result, the
company realized three important benefits: cost savings, increased
processing speed and more reliable systems. Further, enhanced
companywide communication was achieved through the development of a
fast internal e-mail system both within our national headquarters
and with our branch offices.
Since 1995, when SCPIE's Year 2000 (Y2K) effort commenced, the
MIS Department has been modifying its computer programs to
accommodate four-digit (rather than two-digit) years in all date
fields. As of year-end 1998, the department had completed 98% of
these modifications and tested them to ensure that SCPIE will be
ready for the 21st century.
Ending With A Strong Finish
Once again,
SCPIE finished the year in an impressive financial position. In
addition to the strong numbers presented in the Financial
Information section of this Annual Report, the company is also proud
of its 101.6% combined ratio. These numbers validate what we've
believed in all along – that being efficient and diligent on the
front end pays off on the back end.
Our Claims Department had an especially good year. Of all cases
taken to trial in 1998, 82% resulted in favorable outcomes for our
insureds. And, through proactive claims management, the company was
able to reduce claims expenses and indemnity paid by 7%.
Part of our financial strength depends on our ability to set
reserves and insurance premiums realistically. In late 1998, the
company's Board of Directors approved an average 3.7% increase to
our California physician insureds' base premiums for 1999. This
action was necessary to help ensure the long-term stability of
SCPIE's professional liability program. Looking back at 1998, SCPIE
can take pride in what it accomplished: We made significant progress
in fulfilling our strategic plan by diversifying geographically,
expanding our product line and cultivating a broker distribution
system. We continued to provide the highest-quality services and
products for our insureds while maintaining our "A" (Excellent)
rating from A.M. Best. Finally, we grew in premium, controlled our
losses and made a profit – all while setting the stage for even
further growth and success well into the new millennium.
We have enjoyed another year of
financial success, as validated by independent rating services such
as A.M. Best. We are well-reserved, our pricing is realistic and our
revenue is
climbing.
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Selected Consolidated Financial Data (in thousands, except per-share
data)
|
| As of or for the year
ended December 31, |
1998 |
1997 |
1996 |
1995 |
1994 |
|
|
|
|
|
Income Statement
Data1
Direct premiums written |
$125,213 |
$123,910 |
$125,635 |
$122,277 |
$120,024 |
| Premiums earned |
$157,976 |
$133,866 |
$120,484 |
$116,354 |
$111,659 |
| Net investment
income |
40,367 |
42,716 |
40,769 |
40,424 |
39,663 |
| Realized investment gains and
other revenue |
11,618 |
7,153 |
12,113 |
8,231 |
755 |
| Total
revenues |
209,961 |
183,735 |
173,366 |
165,009 |
152,077 |
| Losses and loss adjustment
expenses |
132,208 |
123,377 |
108,797 |
118,023 |
108,720 |
| Other operating
expenses |
28,211 |
17,987 |
14,276 |
12,561 |
11,844 |
| Total
expenses |
160,419 |
141,364 |
123,073 |
130,584 |
120,564 |
Income before policyholder
dividends
and federal income taxes |
49,542 |
42,371 |
50,293 |
34,425 |
31,513 |
| Policyholder
dividends2 |
– |
– |
8,436 |
– |
– |
| Federal income
taxes |
12,566 |
10,195 |
11,665 |
10,056 |
9,212 |
| Net
income |
$
36,976 |
$ 32,176 |
$ 30,192 |
$ 24,369 |
$ 22,301 |
Balance Sheet
Data1
Total investments |
$793,616 |
$785,664 |
$717,910 |
$695,021 |
$636,909 |
| Total assets |
921,469 |
888,449 |
805,155 |
781,358 |
751,605 |
| Total liabilities |
534,951 |
527,334 |
516,588 |
507,539 |
542,069 |
| Total stockholders'
equity |
386,518 |
361,115 |
288,567 |
273,819 |
209,536
|
Additional
Data1
Basic earnings per share of common
stock3 |
$
3.06 |
$ 2.66 |
$ 3.02 |
$ 2.44 |
$
2.23 |
| Diluted earnings per share of
common stock3
| 3.06
| – |
– |
– |
– |
| Cash dividends per share of
common stock |
0.24 |
0.20 |
– |
– |
– |
| Book value per
share3 |
32.54 |
29.41 |
28.86 |
27.38 |
20.95 |
GAAP ratios:
Loss ratio |
83.7% |
92.2% |
90.3% |
101.4% |
97.4% |
| Expense
ratio |
17.9% |
13.4% |
11.8% |
10.8% |
10.6% |
| Combined
ratio |
101.6% |
105.6% |
102.1% |
112.2% |
108.0% |
| Statutory capital and
surplus |
$343,330 |
$321,289 |
$251,958 |
$235,352 |
$187,299 |
1Financial data as of and for the years
ended December 31, 1995 and 1994, are derived from the combined
financial statements of the Southern California Physicians Insurance
Exchange (the Exchange) and an affiliated nonprofit corporation that
was liquidated into the Exchange on July 12, 1996. Financial data as
of and for the year ended December 31, 1996 are derived from the
consolidated financial statements of the Exchange and its
wholly-owned subsidiaries. Financial data as of and for the years
ended December 31, 1998 and 1997, and are derived from the
consolidated financial statements of SCPIE Holdings Inc. and its
wholly-owned subsidiaries. |
2In the second quarter of 1996, the Company
estimated an additional $9.0 million of policyholder dividends
(offset by a $0.6 million credit for forfeited dividends declared in
1995) would be paid due to favorable loss experience related to
policy years 1987 through 1992. This policyholder dividend was paid
to members of the Exchange in the form of premium credits during
1997. The Company has ceased paying such dividends to its
policyholders. |
3Basic earnings per share of common stock
at December 31, 1998 and 1997, are computed using the weighted
average number of common shares outstanding during the year of
12,074,272 and 12,108,330, respectively. All other periods give
effect to the Reorganization completed on January 29, 1997,
including the allocation of 9,994,652 shares of common stock to
eligible members of the Exchange in connection therewith. Diluted
earnings per share of common stock at December 31, 1998, is computed
using the weighted average number of common shares outstanding
during the year of 12,089,013. The adoption of Statement of
Financial Accounting Standards No. 128 (Statement 128), Earnings Per
Share, had no impact on the calculation of earnings per-share
amounts. For further discussion of earnings per share and Statement
128, see the notes to consolidated financial statements beginning on
page 33 of the printed 1998 Annual Report.
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Consolidated Balance
Sheets (In thousands, except share data)
|
December 31, |
1998 |
1997 |
|
|
|
|
|
Assets
Securities available for
sale:
Fixed-maturity investments, at fair
value
(amortized cost: 1998 – $698,971; 1997 –
$692,811) |
$722,196 |
$708,860 |
Equity
investments, at fair value
(cost: 1998 – $31,493;
1997 – $17,052 |
37,015 |
23,523 |
| Total securites available for
sale |
759,211 |
732,383 |
| Short-term
investments |
34,405 |
53,281 |
| Total
investments |
793,616 |
785,664 |
| Cash |
12,305 |
13,252 |
| Accrued investment
income |
11,440 |
12,202 |
| Reinsurance
recoverable |
24,899 |
21,531 |
| Deferred federal income
taxes |
12,163 |
16,158 |
| Costs in excess of net assets
acquired |
7,811 |
4,641 |
| Property and equipment,
net |
19,706 |
19,534 |
| Other assets |
39,529 |
15,467 |
| Total assets |
$921,469 |
$888,449 |
Liabilities
Reserves:
Losses and loss adjustment
expenses |
$477,631 |
$454,971 |
| Unearned premiums |
24,591 |
22,072 |
| Total reserves |
502,222 |
477,043 |
| Other liabilities |
32,729 |
50,291 |
| Total liabilities |
534,951 |
527,334 |
| Commitments and
contingencies |
– |
– |
Stockholders'
Equity
Preferred stock –
par value $1.00; 5,000,000 shares authorized;
no
shares issued or outstanding |
– |
– |
Common stock – par value
$0.0001; 30,000,000 shares authorized;
12,792,091
shares issued; 1998 – 11,878,791 shares outstanding;
1997 – 12,276,691 shares
outstanding |
1 |
1 |
| Additional paid-in
capital |
36,386 |
36,386 |
| Retained earnings |
344,587 |
310,506 |
Treasury stock, at cost (1998
– 413,300 shares;
1997 – 15,400 shares) |
(13,141) |
(416) |
| Accumulated other
comprehensive income |
18,685 |
14,638 |
| Total stockholders'
equity |
386,518 |
361,115 |
| Total liabilities and
stockholders' equity |
$921,469 |
$888,449 |
|
Consolidated Statements of Income
(In thousands, except
per-share data)
|
For the year endeded December
31, |
1998 |
1997 |
1996 |
|
|
|
|
Revenues
Premiums earned |
$157,976 |
$133,866 |
$120,484 |
| Net investment
income |
40,367 |
42,716 |
40,769 |
| Realized investment
gains |
11,129 |
6,602 |
11,738 |
| Other revenue |
489 |
551 |
375 |
| Total revenues |
209,961 |
183,735 |
173,366 |
Expenses
Losses and loss adjustment expenses |
132,208 |
123,377 |
108,797 |
| Other operating
expenses |
28,211 |
17,987 |
14,276 |
| Total expenses |
160,419 |
141,364 |
123,073 |
| Income before policyholder
dividends and federal income taxes |
49,542 |
42,371 |
50,293 |
| Policyholder
dividends |
– |
– |
8,436 |
| Federal income
taxes |
12,566 |
10,195 |
11,665 |
| Net income |
$
36,976 |
$ 32,176 |
$ 30,192 |
| Basic earnings per share of
common stock |
$
3.06 |
$ 2.66 |
$ 3.02 |
| Diluted earnings per share of
common stock |
$
3.06 |
N/A |
N/A |
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Consolidated Statements of Changes in
Stockholders' Equity (in thousands)
|
|
Preferred
Stock |
Common
Stock |
Additional
Paid-In
Capital |
Retained
Earnings |
Treasury
Stock |
Accumulated
Other
Comprehensive
Income |
Total
Stock-
Holders'
Equity |
|
|
|
|
|
|
|
| Balance at January 1,
1996 |
$ – |
$ – |
$ – |
$250,596 |
$ – |
$23,223 |
$273,819 |
| Net
income |
– |
– |
– |
30,192 |
– |
– |
30,192 |
Comprehensive
income for
unrealized losses on
securities
sold, net of
reclassification
adjustments of
$13,743 for
gains included in net
income |
– |
– |
– |
– |
– |
(15,444) |
(15,444) |
|
Comprehensive income |
|
|
|
|
|
|
$ 14,748 |
| Balance at December 31,
1996 |
– |
– |
– |
280,788 |
– |
7,779 |
288,567 |
| Net
income |
– |
– |
– |
32,176 |
– |
– |
32,176 |
Comprehensive
income for
unrealized gains on
securities
sold, net of
reclassification
adjustments of
$4,534 for
gains included in net
income |
– |
– |
– |
– |
– |
6,859 |
6,859 |
| Comprehensive
income |
|
|
|
|
|
|
$ 39,035 |
| Issuance of
common stock |
– |
1 |
36,386 |
– |
– |
– |
36,387 |
| Purchase of
treatury stock |
– |
– |
– |
– |
(416) |
– |
(416) |
| Cash
dividends |
– |
– |
– |
(2,458) |
– |
– |
(2,458) |
| Balance at December 31,
1997 |
– |
1 |
36,386 |
310,506 |
(416) |
14,638 |
361,115 |
| Net
income |
– |
– |
– |
36,976 |
– |
– |
36,976 |
Comprehensive income for
unrealized
gains on securities
sold, net of
reclassification
adjustments of
$1,863 for
gains included in net
income |
– |
– |
– |
– |
– |
4,047 |
4,047 |
|
Comprehensive income |
|
|
|
|
|
|
$ 41,023 |
| Purchase
of treatury stock |
– |
– |
– |
– |
(12,725) |
– |
(12,725) |
| Cash
dividends |
– |
– |
– |
(2,895) |
– |
– |
(2,895) |
| Balance at December
31, 1998 |
$ – |
$ 1 |
$36,386 |
$344,587 |
$(13,141) |
$ 18,685 |
$386,518 |
TOP
OF PAGE
|
Corporate Information
|
National Headquarters
SCPIE Holdings
Inc.
1888 Century Park East, Suite 800
Los Angeles, CA
90067-1712
310.551.5900
800.962.5549
http://www.scpie.com/
Securities Listing
The
common stock of SCPIE Holdings Inc. is traded on the New York Stock Exchange
under the symbol SKP. Most newspaper stock tables list the Company's
stock as SCPIE.
Annual Meeting
Thursday,
May 13, 1999, 3:00 p.m.
Los Angeles Marriott Downtown
333
South Figueroa Street
Los Angeles, CA 90071
Form 10-K
A copy of the
Annual Report on Form 10-K for the fiscal year ended December 31,
1998, as filed with the Securities and Exchange Commission, is
available upon written request from:
Patrick Lo
Senior Vice
President and Chief Financial Officer
SCPIE Holdings Inc.
1888
Century Park East, Suite 800
Los Angeles, CA 90067-1712
Transfer Agent and
Registrar
If you have questions about your dividends or
stock certificate, or if you need to transfer your shares or change
the name in which they are registered, please
contact:
ChaseMellon Shareholder Services, LLC
85 Challenger
Road
Overpeck Centre
Ridgefield Park, NJ
07660
800.953.2491
http://www.chasemellon.com/
Independent
Auditors
Ernst & Young LLP
725 South Figueroa
Street
Los Angeles, CA 90017
213.977.3200
Legal Counsel
Latham
& Watkins
701 B Street, Suite 2100
San Diego, CA
92101-8197
619.236.1234 |
Investor Relations
Interested parties can
access a wealth of information about SCPIE Holdings Inc. through our
website (http://www.scpie.com/). Besides
learning about SCPIE products and services, you can learn about the
history of the Company and its financial status. You can also
request further information via e-mail through the website's
Interactive Services section.
In addition, you can phone our
Stockholder Relations Department directly at 800.806.2677. Available
on request are a number of company publications and copies of the
Annual Report.
Our liaison with the investment community is
facilitated by:
Cecilia A. Wilkinson
Pondel/Wilkinson
Group
12100 Wilshire Boulevard, Suite 400
Los Angeles, CA
90025
310.207.9300
e-mail: investor@pondel.com
Stock and Dividend
Data
Public trading of the common stock of SCPIE
Holdings Inc. commenced on January 30, 1997. Prior to that, there
was no public market for SCPIE Holdings Inc. common stock. For every
quarter in 1998, SCPIE Holdings Inc. paid a dividend of $.06 per
common share. The number of stockholders of record on December 31,
1998, was 7,448.
| 1998 |
HIGH |
LOW |
Market Price
1st
Qtr
2nd Qtr
3rd Qtr
4th
Qtr |
31-5/8
38-3/8
35-3/8
32-1/4
|
27-5/16
30-1/4
28-1/2
27-15/16
|
|
For every quarter in
1997, SCPIE Holdings Inc. paid a dividend of $.05 per common
share.
|
|
| 1997 |
HIGH |
LOW |
|
|
|
Market Price
1st
Qtr
2nd Qtr
3rd Qtr
4th
Qtr |
24-5/8
27-13/16
31-9/16
32 |
19-1/2
19-1/4
24-1/2
26-15/16
|
|
|
TOP
OF PAGE
|
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