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!C O R R E C T I O N -- CITIZENS CORPORATION!

 In NE016, "Citizens Corporation Announces Second Quarter Earnings," moved Thursday, July 22, we are advised by the company that the first line, left column of the chart should read "Six months June 30," rather than "Quarter June 30," as originally issued, and the fourth line, first column of the chart should read "Quarter June 30," rather than "Six months June 30," as originally issued.
 A corrected version follows:
 CITIZENS CORPORATION ANNOUNCES SECOND QUARTER EARNINGS
 WORCESTER, Mass., July 22 /PRNewswire/ -- Citizens Corporation (Citizens) (NYSE: CZC), which through its wholly-owned subsidiary, Citizens Insurance Company of America, is one of the leading underwriters of personal and commercial property and casualty insurance in Michigan, today reported net income for the second quarter of $19.5 million or $.51 proforma per share compared to net income of $17.3 million or $.45 proforma per share in 1992. Net income for the first six months of 1993 was $34.7 million or $.90 proforma per share compared to $42.2 million, or $1.11 proforma per share for the first six months of 1992. The lower year-to-date earnings in 1993 were expected due to the unusually mild winter weather in 1992 in Michigan which produced better than expected first quarter results in 1992. Results in 1993 reflect a return to more typical weather, as well as a one-time charge of $5.0 million due to the cumulative effect of changes in accounting principles, including the implementation of SFAS 106, "Employers' Accounting for Postretirement Benefits other than Pensions," and SFAS 109, "Accounting for Income Taxes." The increase in net income in the second quarter of 1993 over the same period in 1992 was primarily due to an increase in realized gains on fixed maturity investments.
 All per share amounts are computed on a proforma basis reflecting, for all periods presented, the reorganization and exchange of common and preferred shares between Citizens Corporation, The Hanover Insurance Company, and Citizens Insurance which occurred in February of 1993 and the shares issued in conjunction with the initial public offering and the exercise of the underwriters' "over-allotment" option in March and April of 1993, respectively, as if these transactions occurred on January 1, 1992. Actual earnings per share are $.97 for the first six months of 1993 and $.51 for the second quarter and are not comparable to 1992 actual earnings per share due to the changes in capital structure.
 Citizens' net premiums written increased 9.2 percent to $370.0 million in 1993 from $338.8 million in 1992. Approximately $14.4 million of this increase resulted from a change in the terms of personal lines policies from a three month minimum term to a minimum term of six months for policies effective June 1, 1993. The remainder of the increase in net premiums written was due to price increases in both commercial and personal lines as well as continued growth in policies in force in certain personal lines products.
 Net income from operations, excluding net realized gains and the cumulative effect of changes in accounting principles, was $28.6 million, or $.74 proforma per share for the first six months of 1993, compared to $40.4 million, or $1.06 proforma per share for 1992. The unusually mild weather in Michigan in 1992 resulted in better than expected profits in the first quarter of 1992.
 Net investment income before taxes for Citizens was $37.1 million in 1993 and $37.2 million in 1992. Realized gains, net of tax, were $11.1 million in 1993 and $1.8 million in 1992. The decrease in net investment income before taxes and the increase in realized gains were attributable to the continued shift towards a higher level of lower-yielding tax-exempt investments in accordance with the current tax strategy. Net investment income after taxes increased 10.2 percent, primarily as a result of the investment income earned on the proceeds of the initial public offering.
 Citizens' statutory combined ratio, including policyholders' dividends, was 99.8 percent in 1993, compared to 92.1 percent in 1992.
 Citizens' net premiums written increased 14.9 percent to $198.5 million in the second quarter of 1993 from $172.7 million in the second quarter of 1992, primarily as a result of the change in personal lines policies from a three month minimum term to a minimum term of six months for policies effective June 1, 1993.
 For the second quarter of 1993, net income from operations excluding net realized gains was $14.6 million, or $.38 proforma per share compared to $15.2 million, or $.39 proforma per share for 1992.
 Net investment income before taxes for Citizens was $18.6 million in 1993 and $18.7 million in 1992. Realized gains, net of tax, were $4.9 million in 1993 and $2.1 million in 1992. The decrease in net investment income before taxes and the increase in realized gains were attributable to the continued shift towards a higher level of lower-yielding tax-exempt investments in accordance with the current tax strategy. Net investment income after taxes increased 12.4 percent, primarily as a result of the investment income earned on the proceeds of the initial public offering.
 Citizens' statutory combined ratio, including policyholders' dividends, was 99.8 percent in 1993, compared to 94.1 percent in 1992, reflecting underwriting results which are more in line with historical trends.


A Review of the Balance Sheet
 Fixed maturity investments represented 96.8 percent of total invested assets of $1.2 billion at June 30, 1993. Of the total fixed maturity investments, 97.6 percent were rated investment grade or above. There are no investments in real estate or mortgages secured by real estate.
 On April 19, 1993 the underwriters for the March 19, 1993 initial public offering exercised their "over-allotment" option, purchasing another 731,600 shares of common stock, providing an additional $16.5 million in capital.
 Shareholders' equity increased $28.2 million in the second quarter of 1993 from $567.2 million ($16.05 per share) at March 31, 1993, to $595.4 million ($16.50 per share) at June 30, 1993.
 All interim information is unaudited, and all results are reported in accordance with generally accepted accounting principles (GAAP) with the exception of the combined ratio which is reported on a statutory basis.
 Citizens is a member of Allmerica Financial, a diversified group of insurance and financial services companies based in Worcester, Mass.
 DOW JONES
 CITIZENS CORPORATION
 For the Periods Ended June 30, 1993 and 1992
 Six Months June 30: 1993 1992
 Net Income $34,742,000 $42,230,000
 Proforma Earnings Per Share (a) $ .90 $1.11
 Proforma Average No. Shares 36,075,000 36,075,000
 Quarter June 30: 1993 1993
 Net Income $19,486,000 $17,254,000
 Proforma Earnings Per Share (a) $ .51 $ .45
 Proforma Average No. Shares 36,075,000 36,075,000
 All figures are reported in accordance with generally accepted accounting principles (GAAP) after giving retroactive effect of issuance of Citizens Insurance Series A preferred stock and reflecting the shares issued in conjunction with the initial public offering and underwriters' "over-allotment," as if these transactions occurred on January 1, 1992.
 NOTE:(a) Includes net realized gain (loss) on investments, net of federal income taxes at the statutory rate of 34 percent as follows:
 Y-T-D 2nd Quarter
 1993 1992 1993 1992
 Net realized gain(loss)
 on investments, net of
 applicable federal
 income taxes........ $ .30 $ .05 $ .13 $.06
 Cumulative effect
 of changes in
 accounting principles,
 net of applicable
 federal income
 taxes............. $ .14 -- -- --
 -0- 7/28/93
 /CONTACT: Edward J. Parry, III, vice president and treasurer, 508-855-4600; or Mark C. McGivney, investor relations, 508-855-4019; or (media) Michael F. Buckley, director, public information, 508-855-3099, all of Allmerica/
 (CZC)


CO: Citizens Corporation; Allmerica Property & Casualty Companies, Inc. ST: Massachusetts IN: FIN SU: ERN

DD -- NE008 -- 6644 07/28/93 09:18 EDT
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Publication:PR Newswire
Date:Jul 28, 1993
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