 NEW YORK, July 31, 2020 GLOBE NEWSWIRE -- National General Holdings Corp. Nasdaq: NGHC reported second quarter 2020 net income of 157.6 million or 1.37 per diluted share, compared to net income of 69.0 million or 0.60 per diluted share in the second quarter of 2019. Second quarter 2020 operating earnings non-GAAP1 were 157.6 million or 1.36 per diluted share compared to 78.1 million or 0.67 per diluted share in the second quarter of 2019. Second Quarter 2020 Highlights versus Second Quarter 2019 Gross written premium grew by 50.4 million to 1,243.2 million compared to the prior years quarter due to our PC segment growth of 3.2, driven by the acquisition of National Farmers Union Property and Casualty Company Farmers Union Insurance in the third quarter of 2019, and organic growth, largely offset by the premium refund provided due to lower miles driven as a result of the COVID-19 pandemic; and our AH domestic segment growth of 20.2, excluding our previously sold AH international business. The overall combined ratio11,12 was 80.5 compared to 90.9 in the prior years quarter, excluding non-cash amortization of intangible assets. The PC segment reported an improved combined ratio to 83.6 from 92.6 in the prior years quarter driven by our continued strong underwriting and recent declines in miles driven. The PC combined ratio includes prior year unfavorable loss development of 8.6 million compared to 10.4 million unfavorable loss development in the prior years quarter, and 35.3 million of catastrophe losses related to weather-related events compared to 18.4 million of catastrophe losses in the prior years quarter. The AH segment reported a decrease in the combined ratio to 65.0 from 82.6 in the prior years quarter, driven by strong operating results in our small group self-funded and individual products, absence of our international business which was sold in the fourth quarter of 2019, and growth in service and fee income of 51.3. The AH combined ratio includes 11.4 million of favorable loss development compared to 8.1 million of favorable loss development in the prior years quarter. Stockholders equity was 3.0 billion and fully diluted book value per share was 22.02 at June 30, 2020, growth of 13.0 and 15.5, respectively, from December 31, 2019. Excluding accumulated other comprehensive income, fully diluted book value per share was 20.40 at June 30, 2020, growth of 10.7, from December 31, 2019. Our trailing twelve-month operating return on average equity ROE13 was 18.1 as of June 30, 2020. Second quarter of 2020 operating earnings non-GAAP1 excludes the following, net of tax: 0.1 million loss on equity method investments, 4.4 million or 0.04 per share of net gain on investments and 4.2 million or 0.04 per share of non-cash amortization of intangible assets. Repurchased 459,083 shares during the second quarter of 2020 as part of our share repurchase program. Agreement announced on July 7, 2020 to be acquired by Allstate for expected total consideration of 34.50 per share cash consisting of 32.00 in cash and an up to 2.50 per share closing dividend, subject to shareholder and regulatory approval and other customary closing conditions.Barry Karfunkel, National Generals CEO, stated: Our well diversified platform continues to perform well. With our recently announced agreement to be acquired by Allstate, we look forward to contributing to the greater Allstate. I want to personally thank each and every one of the National General team members for their outstanding and continued work during these unprecedented times and for their continuing contribution to the success of the pending acquisition.NOTE: Unless specified otherwise, discussion of our second quarter 2020 and 2019 results do not include financial results from the Reciprocal Exchanges, which are presented within our consolidated financial results within this release but are not included in net income available to NGHC common stockholders. Overview of Second Quarter 2020 as Compared to Second Quarter 2019 Property Casualty - Gross written premium grew by 3.2 to 1,053.5 million, net written premium increased by 0.4 to 789.4 million, and net earned premium increased by 2.9 to 842.0 million. PC gross written premium growth was driven by 47.7 million of added premiums from the acquisition of Farmers Union Insurance, and organic growth, largely offset by the premium refund provided due to lower miles driven as a result of the COVID-19 pandemic. Service and fee income was 112.0 million compared to 113.1 million in the prior years quarter. Excluding non-cash amortization of intangible assets, the combined ratio11,12 was 83.6 with a loss and LAE ratio of 59.8 and an expense ratio10,12 of 23.8, versus a prior year combined ratio of 92.6 with a loss and LAE ratio of 72.6 and an expense ratio of 20.0. The loss and LAE ratio was impacted by pre-tax catastrophe losses of approximately 35.3 million primarily related to weather-related events in the second quarter of 2020, compared to 18.4 million of losses in the second quarter of 2019. Unfavorable loss development was 8.6 million in the second quarter of 2020 primarily driven by small business auto, compared to unfavorable loss development of 10.4 million in the second quarter of 2019. Accident Health - Gross written premium grew by 18.0 million compared to the prior years quarter due to growth in both our small group self-funded and individual products. Excluding our AH international business, our AH domestic segment grew by 20.2 to 189.7 million. Service and fee income grew 51.3 to 80.1 million compared to 52.9 million in the prior years quarter. Excluding non-cash amortization of intangible assets, the combined ratio11,12 was 65.0 with a loss and LAE ratio of 39.5 and an expense ratio10,12 of 25.5, versus a prior year combined ratio of 82.6 with a loss and LAE ratio of 52.0 and an expense ratio of 30.6. The loss and LAE ratio reflects strong performance in both small group self-funded and individual products. Favorable loss development was 11.4 million in the second quarter of 2020, compared to favorable loss development of 8.1 million in the second quarter of 2019. Reciprocal Exchanges - Results for the Reciprocal Exchanges are not included in net income available to NGHC common stockholders. Gross written premium was 98.4 million, net written premium was 57.3 million, and net earned premium was 54.8 million. Reciprocal Exchanges combined ratio11,12 excluding non-cash amortization of intangible assets was 83.1 with a loss and LAE ratio of 54.8 and an expense ratio10,12 of 28.3.Second quarter of 2020 net investment income decreased to 30.5 million, compared to 35.9 million in the second quarter of 2019. Total investments and cash and cash equivalents including restricted cash were 5.2 billion as of June 30, 2020. Accumulated other comprehensive income increased to a 186.9 million gain at June 30, 2020, from a 74.5 million gain at December 31, 2019, primarily due to market improvement.Interest expense was 11.8 million, down from 12.9 million in the prior years quarter. Debt was 682.3 million at June 30, 2020, compared to 686.0 million at December 31, 2019.The second quarter of 2020 provision for income taxes was 49.0 million and the effective tax rate for the quarter was 22.7 compared with income taxes of 22.3 million and an effective rate of 22.2 in the second quarter of 2019.Stockholders equity was 2,995.1 million at June 30, 2020, growth of 13.0 from 2,649.5 million at December 31, 2019. Fully diluted book value per share was 22.02 at June 30, 2020, growth of 15.5 from 19.06 at December 31, 2019. Excluding accumulated other comprehensive income, fully diluted book value per share was 20.40 at June 30, 2020, growth of 10.7, from December 31, 2019. Our trailing twelve-month operating return on average equity ROE13 was 18.1 as of June 30, 2020.Year-to-Date PC Segment Notable Large Losses Year Quarter Event PC Notable Large Losses and LAE millions PC Loss and LAE Ratio Points EPS Impact After Tax 2020 Q2 Weather-related Events 35.3 4.2 0.24 2020 Q1 Weather-related Events 8.1 0.9 0.06 2019 Q2 Weather-related Events 18.4 2.2 0.13 2019 Q1 Winter Weather 12.1 1.6 0.08 Loss and LAE ratio points related to PC net earned premium in quarter the loss event was recorded.Additional item -Homeowners Quota Share - Effective July 1, 2020, we cede 20.0 of net liability and receive a 37.0 ceding commission on in-force, new and renewal business, under our homeowners quota share reinsurance agreement.About National General Holdings Corp.National General Holdings Corp. NASDAQ: NGHC, headquartered in New York City, is a specialty personal lines insurance holding company. National General traces its roots to 1939, has a financial strength rating of A- excellent from A.M. Best, and provides personal and commercial automobile, homeowners, umbrella, recreational vehicle, motorcycle, lender-placed, supplemental health and other niche insurance products. IMPORTANT INFORMATION FOR INVESTORSAdditional Information and Where to Find ItThis communication may be deemed solicitation material in respect of the proposed acquisition of National General Holdings Corp. the Company by The Allstate Corporation. In connection with the merger, the Company plans to file with the Securities and Exchange Commission and furnish its stockholders a proxy statement. Additionally, the Company will file other relevant materials with the Securities and Exchange Commission in connection with the proposed transaction. 