BEDFORD, Texas, Oct. 12, 2015 (GLOBE NEWSWIRE) — State National Companies, Inc. (NASDAQ:SNC), a leading specialty provider of property and casualty insurance, announced today that its Board of Directors has approved a stock repurchase program under which the Company may repurchase up to $50 million of its common stock through December 31, 2016. The buyback program will be financed from currently held cash and investments.
Under the terms of the stock repurchase program, the Company is authorized to repurchase shares from time to time on the open market at prevailing market prices or in negotiated transactions in accordance with applicable securities rules and regulations. The Company’s repurchase of shares will not begin before the release of the Company’s financial statements for the third quarter ending September 30, 2015, which is expected to be in mid-November. Repurchases may also be made under a plan in accordance with the guidelines specified under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, if and when one is established. The stock repurchase program may be suspended, modified or discontinued at any time, and does not obligate the Company to purchase any specific number of shares.
“State National has a very capital efficient business model that generates substantial operating cash flow and today’s announcement represents the continuation of our commitment to manage capital to enhance shareholder value,” said Terry Ledbetter, SNC’s President and Chief Executive Officer. “Our management team and Board of Directors believe in our long-term growth prospects as well as our ability to generate strong profits and cash flow. The stock repurchase program represents an important step toward optimizing the capital structure of the Company and demonstrates our commitment to creating, enhancing and returning value to shareholders.”
About State National Companies, Inc.
State National Companies, Inc. (NASDAQ:SNC) is a leading specialty provider of property and casualty insurance operating in two niche markets across the United States. In its Program Services segment, the Company leverages its “A” (Excellent) A.M. Best rating, expansive licenses and reputation to provide access to the U.S. property and casualty insurance market in exchange for ceding fees. In its Lender Services segment, the company specializes in providing collateral protection insurance, which insures personal automobiles and other vehicles held as collateral for loans made by credit unions, banks and specialty finance companies. To learn more, please visit www.statenational.com. The Company routinely posts important company information on its website.
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
Various statements contained in this press release are forward-looking statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenues, income and capital spending. Our forward-looking statements are generally, but not always, accompanied by words such as “estimate,” “believe,” “expect,” “will,” “plan,” “target,” “could” or other words that convey the uncertainty of future events or outcomes.
There can be no assurance that actual developments will be those anticipated by us. Actual results may differ materially from those expressed or implied in these statements as a result of significant risks and uncertainties, including, but not limited to, our ability to recover from our capacity providers, the cost and availability of reinsurance coverage, challenges to our use of issuing carrier or fronting arrangements by regulators or changes in state or federal insurance or other statutes or regulations, our dependence on a limited number of business partners, potential regulatory scrutiny of lender-placed automobile insurance, level of new car sales, availability of credit for vehicle purchases and other factors affecting automobile financing, our ability to compete effectively, a downgrade in the financial strength ratings of our insurance subsidiaries, our ability to accurately underwrite and price our products and to maintain and establish accurate loss reserves, changes in interest rates or other changes in the financial markets, the effects of emerging claim and coverage issues, changes in the demand for our products, the effect of general economic conditions, breaches in data security or other disruptions with our technology, and changes in pricing or other competitive environments.
Forward-looking statements involve inherent risks and uncertainties that are difficult to predict, many of which are beyond our control. Additional information about these risks and uncertainties is contained in our filings with the Securities and Exchange Commission. The forward-looking statements in this press release speak only as of the date of this release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
CONTACT: CONTACTS: State National Companies, Inc. David Hale, COO & CFO 817-265-2000 Dennard ▪ Lascar Associates Rick Black 713-529-6600