Commercial operations reported a net loss of $1.6 million for the quarter. "Our commercial lines operation was negatively impacted by a charge of $1.6 million associated with the Company's mandatory participation in certain residual market pools. This is expected to be a nonrecurring charge that will not effect the results of our commercial lines business going forward," stated Natili. "We continue to be extremely pleased with the favorable loss ratio associated with our commercial lines book of business."

Seibels Bruce's adjusting services segment posted a profit of $177 thousand for the quarter. "For the sixth consecutive quarter since reporting separately the results of our adjusting services subsidiary, Insurance Network Services, Inc., (INS), it has posted a profit." stated Natili. "While INS's revenues are down substantially this quarter, primarily due to the run-off of South Carolina Reinsurance Facility business handled by INS, its non-Facility business continues to grow."

The all other segment posted a profit of $242 thousand. "This profit was produced due to the Company's adjusting the estimated settlement of an outstanding lawsuit by $370 thousand. The Company believes the lawsuit will settle favorably in the near future," said Natili.

Natili concluded, "We are very pleased with four consecutive quarters of profitability and continue to be optimistic about the future of Seibels Bruce. Our team continues to focus its efforts on profitable businesses to provide value to our shareholders." Marsha J.