Amwest Insurance Group Inc. Announces First-Quarter Results

Amwest Insurance Group Inc. reported net income of $2,056,000 or 54 cents per share for the three months ended March 31, 1998, as compared with net income of $1,785,000 or 49 cents per share for the three months ended March 31, 1997. 1997 amounts have been restated to reflect the 10 percent stock dividend paid to stockholders of record as of March 31, 1998.

Gross premiums written increased 36 percent to $29,342,000 for the three months ended March 31, 1998, as compared with $21,610,000 for the three months ended March 31, 1997. Earned premiums also increased to $27,124,000 in the first quarter of 1998 from $21,446,000 in 1997, an increase of 26 percent.

Richard H. Savage, chairman and co-CEO, comments: "The continued strong growth in premiums is now starting to have a significant positive impact on the earned premiums of the group. In particular, the surety division continues to benefit from our decisions to regionalize our contract underwriting process to better serve our customers and make more informed underwriting decisions.

"During the first quarter, our surety division saw an increase in written premiums of $6,924,000 or 44 percent over the preceding year. Earned premiums for the division also increased significantly to $21,931,000 or 36 percent over 1997. Just as importantly, the loss ratio for our surety division was 22 percent for the quarter vs. 25 percent for the first quarter of 1997.

"Property and casualty division written premiums increased $808,000 or 14 percent over 1997, primarily due to the commencement of one specialty general agency program handled by our Interstate Program Managers (IPM) subsidiary.

"Over the next several quarters, we expect to see a more substantial increase in premiums as additional programs come on line. As we have previously indicated, until such time as these programs are effective, the expense ratio of the property and casualty division will remain at higher than acceptable levels due to the expenses incurred in creating the specialty unit and other internal expenses required to grow this business."

Amwest is a Calabasas-based insurance holding company underwriting specialty property and casualty insurance through Amwest Surety Insurance Co., Condor Insurance Co. and Far West Insurance Co.