Highlands Insurance GroupQ2 Results

Highlands Insurance Group, a New Jersey-based property and casualty insurer, has reported net income of $3.6 million ($.27 per diluted share) for the second quarter of 2000 compared with a net income of $2.8 million ($.20 per diluted share) for 1999.

The year-to-date net income for 2000 was $5.5 million ($.42 per diluted share) compared with net income of $5.6 million ($.40 per diluted share) in 1999. After-tax net operating income for the second quarter of 2000 amounted to $3.5 million or $.26 per diluted share, exclusive of after-tax net realized investment gains of $105,000. This compares with an after-tax net operating income of $2.0 million or $.14 per diluted share, exclusive of after-tax net realized investment gains of $839,000, in 1999.

The year-to-date after-tax net operating income for 2000 was $4.9 million ($.37 per diluted share) compared with after-tax net operating income of $4.4 million ($.31 per diluted share) in 1999.

Net premiums written and earned increased 33.7% and 15.8%, respectively, for the second quarter of 2000 compared with the same period in 1999.

Net investment income decreased 8.8% for the second quarter of 2000 compared with the same period in 1999.

“Our regions continue to be very selective and disciplined in underwriting and pricing the risks that we want, even though our markets continue to be competitive. Our strategy of focusing on each region’s unique identity continues to advance our goal of growing profitably. Also, previously announced expense reduction efforts are even more evident this quarter,” said Willis T. King, Jr., Chairman and Chief Executive Officer.