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(OTC Bulletin Board: SBIG) The Seibels Bruce Group, Inc. Announces 2001 Second Quarter Profit
COLUMBIA, S.C., July 27 /PRNewswire/ -- The Seibels Bruce Group, Inc., today announced financial results for the quarter that ended June 30, 2001.

For the second quarter of 2001 the Company posted a net profit of $1.1 million, or $0.13 per share (basic and diluted). This is compared with a net loss of $21.6 million, or $2.76 per share, for last year's second quarter.

"Our strategy of focusing on fee-based businesses and only those risk-bearing businesses that we believe can be profitable rewarded us with the fourth consecutive profitable quarter," said Jack Natili. "We continue to be pleased that the strategy we implemented in the second quarter of last year is working."

The automobile segment reported net income of $1.8 million. "Our decision to maintain a nonstandard automobile presence in North Carolina through our Universal Insurance Company (Universal) subsidiary contributed largely to this profit. New management has been successful in substantially growing Universal's premiums, most of which are ceded to the North Carolina Reinsurance Facility, and in improving loss ratios associated with our retained book of business," commented Natili. "The automobile segment was also positively effected by favorable development of the run-off of other nonstandard automobile business."

The flood segment reported a gain of $403 thousand for the quarter. "Premium growth, expense reduction initiatives and increased claim activity due primarily to Tropical Storm Allison contributed to our profit in the flood business," Natili said. "Because of our continued efforts to increase volume, the Company is better positioned to benefit from fee-based income for processing claims for the National Flood Insurance Program (NFIP)."

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."

The Seibels Bruce Group, Inc. receives fee-based income through the NFIP, various state-sponsored insurance plans, claim administration and other insurance services. In addition, it is a provider of automobile and commercial lines property and casualty insurance products. Additional information about Seibels Bruce can be found on-line at http://www.seibels.com .

Certain items in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and as such involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Seibels Bruce or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements speak only as of the date of this press release. Seibels Bruce expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward- looking statements contained herein to reflect any change in Seibels Bruce's expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.


The Seibels Bruce Group, Inc.

RESULTS OF OPERATIONS

(in thousands, unaudited)


Three months ending Six months ending

June
30
June 30


Revenues:
2001
2000
2001 2000

Automobile
$5,145 $5,510
$11,823 $16,325

Flood
4,576
4,099 8,661
7,168

Commercial
2,355
800 3,699
1,476
Adjusting
Services
2,609
3,557 5,020
6,819
All
Other
324
177
552 545

$15,009 $14,143
$29,755 $32,333

Net income (loss):
Automobile
(a)
$1,812 $(21,535) $2,057
$(23,938)

Flood
403
(115)
908 (238)

Commercial
(1,584)
(281) (813)
(345)
Adjusting
Services
177
716
500 834
All
Other
242
(370) (583)
(812)

1,050 (21,585)
2,069 (24,499)
Provision for income
taxes
-
-
- -
Net income
(loss)
$1,050 $(21,585) $2,069
$(24,499)

Basic earnings (loss)
per share:
Net income
(loss)
$0.13 $(2.76)
$0.25 $3.13
Weighted average shares

outstanding
7,832
7,832 7,832
7,831

Diluted earnings (loss)
per share:
Net income
(loss)
$0.13 $(2.76)
$0.25 $(3.13)
Weighted average shares

outstanding
8,219
7,832 8,189
7,831

(a) Includes a special items charge of $16,421 and a
related nonrecurring
charge of $1,800 recorded in
the quarter ended June 30, 2000


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SOURCE The Seibels Bruce Group, Inc.

/CONTACT: Jack Natili President and Chief Executive Officer,
[phone], or fax, [phone], or [e-mail], or Kenneth W.
Marter, Chief Financial Officer and Treasurer, [phone], or fax,
[phone], or [e-mail], both of The Seibels Bruce Group/

/Web site: http://www.seibels.com/

(SBIG)




SEIBELS BRUCE GROUP INC - SBIG
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:=) Gary Swancey