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/REPEATING TO CORRECT FINANCIAL TABLE HEADING/

 /REPEATING TO CORRECT FINANCIAL TABLE HEADING/
 CAPITAL HOLDING REPORTS THIRD QUARTER OPERATING EARNINGS
 OF $1.64 PER SHARE, UP 10.8 PERCENT
 LOUISVILLE, Ky., Oct. 28 /PRNewswire/ -- Capital Holding Corporation (NYSE: CPH) today reported third quarter operating earnings, excluding realized investment gains and losses and related deferred acquisition cost amortization, of $84.2 million, or $1.64 per share. This represents a 10.8 percent increase over the $1.48 per share reported for last year's third quarter. Year-to-date operating earnings were $235.7 million, bringing the nine months' per share results to $4.59, up 11.1 percent.
 Net income for the third quarter, including net realized investment gains and losses, was $1.73 per share, up 27.2 percent compared with the same period last year. Net income for the first nine months was $4.52 per share, up 14.1 percent over the same period last year. Nine months' net income of $232.1 million included $28.7 million in net realized securities gains, offset by $22.1 million in mortgage loan writedowns and reserve additions. Net gains were more than offset by amortizations related to both the sales of securities and mortgage loan writedowns.
 Revenues for the third quarter, excluding realized investment gains and losses, were $693.3 million, up 4.6 percent over third quarter last year. Revenues for the first nine months were $2.13 billion, up 8.8 percent over the same period last year. Quarterly premium income was up by 9.1 percent over the prior year, reflecting the acquisition of the Durham Corporation. Net investment income for the quarter was $354.5 million, down 3.4 percent from third quarter last year, due to lower investment yields on floating-rate assets and the lower interest rate environment overall.
 Recently, Standard & Poor's Corporation (S&P) reaffirmed AAA (Superior) claims-paying ratings for Commonwealth Insurance and Peoples Security Insurance companies. Duff & Phelps Credit Rating Company reaffirmed AA+ (Excellent) ratings for these same companies. Also, S&P reaffirmed its AA and Duff & Phelps reaffirmed its AA- rating for National Home Life Assurance. Thomson InsuranceWatch assigned first time ratings of AA+ to all three insurance companies.
 Additionally, commercial paper ratings for Capital Holding were reaffirmed at A1+ by S&P, at D-1+ by Duff & Phelps and assigned at TBW-1 by Thomson. These are the highest commercial paper ratings given by each agency.
 "In spite of the sluggish economy, our targeted marketing and customer management strategies are delivering solid revenue and profit growth. Combined with our financial strength, we are well positioned for continued success," said Irving W. Bailey II, Capital Holding's chairman, president and chief executive officer.
 The company reported higher earnings in each of its four operating units.
 Agency Group pretax earnings for the third quarter were $48.6 million, up 10.4 percent over the third quarter of 1991. Nine months' pretax earnings were $140.6 million, an 11.7 percent increase compared with the first nine months of last year. The increase reflects inclusion of the Durham Corporation acquisition. Less than a year after Capital Holding completed its acquisition of the North Carolina company, Durham's nearly one million policy records have been fully integrated into Agency Group.
 Health sales continue below last year's levels, when premium growth reflected the impact of last year's rate increase. Life insurance sales and marketing partnerships business showed strong gains and are up 50.7 percent over 1991.
 The Direct Response Group (DRG) reported pretax earnings for the quarter of $21.2 million, up 12.4 percent from the same period last year. For the first nine months, pretax earnings were $58.6 million, up 18.7 percent from $49.3 million. Contributing to the earnings growth were improving margins in most product lines; this despite a slight negative impact in the property and casualty line resulting from nearly $5 million in claims due to damage by Hurricane Andrew. DRG total loss exposure was significantly reduced by catastrophic loss reinsurance for cumulative claims above $2 million.
 Pretax earnings for the Accumulation and Investment Group in the third quarter were $29.9 million, up 5.3 percent, bringing nine months' earnings to $90.3 million, up 7.7 percent from the same period in 1991. Retail and institutional deposits increased $324.0 million during the quarter. As of late October, balances for the fee-based Trust GIC product totaled $1.1 billion. Strong margins have continued as a result of the favorable interest rate environment, offset somewhat by accruals for potential state guaranty fund assessments.
 Mortgage loan performance remains strong, with problem commercial loans--including delinquencies, restructured loans, foreclosures and real estate owned--representing 6.19 percent of that portfolio at the end of the third quarter.
 First Deposit Corporation's (FDC) pretax earnings were $24.0 million for the third quarter, bringing nine months' earnings to $69.5 million, up 33.2 percent over the same period a year earlier. Lower funding costs and a modest improvement in chargeoffs contributed to the increase. Total receivables, including Select EquityR loans and securitized loans serviced by FDC, were up 8.6 percent over last year. Annualized chargeoffs on total receivables, including securitizations, were 5.7 percent through nine months, compared with 5.9 percent at the end of the six-month period. In September, FDC securitized an additional $150 million of loans, bringing total securitized assets to $1.8 billion.
 Capital Holding Corporation is one of the nation's largest shareholder-owned life insurance organizations, with $20 billion in assets and $56.6 billion of life insurance coverage in force.
 The corporation offers a broad range of financial services and products through agents, direct-marketing media, investment professionals and retail locations. Its common stock is listed on the New York and Pacific Stock Exchanges under the ticker symbol CPH; its preferred stock is listed on the New York Stock Exchange under the symbol CPHF.
 CAPITAL HOLDING CORPORATION
 THREE-AND NINE-MONTH FINANCIAL HIGHLIGHTS
 Percent
 Three Months Ended Sept 30, 1992 1991 Increase
 Operations:
 Total revenues $ 707,665,000 $ 655,092,000 8.0
 Operating earnings(A) 84,160,000 68,019,000 23.7
 Realized investment
 gain (loss),
 net of related
 amortization,
 net of tax 4,692,000 (5,314,000)
 Net income 88,852,000 62,705,000 41.7
 Per share:
 Operating earnings(A) 1.64 1.48 10.8
 Realized investment
 gain (loss),
 net of related
 amortization,
 net of tax .09 (.12)
 Net income 1.73 1.36 27.2
 Percent
 Nine Months Ended Sept 30, 1992 1991 Increase
 Operations:
 Total revenues $ 2,134,428,000 $ 1,948,639,000 9.5
 Operating earnings(A) 235,697,000 191,255,000 23.2
 Realized investment
 gain (loss),
 net of related
 amortization,
 net of tax (3,548,000) (7,670,000)
 Net income 232,149,000 183,585,000 26.5
 Per share:
 Operating earnings(A) 4.59 4.13 11.1
 Realized investment
 gain (loss),
 net of related
 amortization,
 net of tax (.07) (.17)
 Net income 4.52 3.96 14.1
 (A) Excludes realized investment gains and losses, net of
 related amortization, net of tax.
 -0- 10/28/92
 /CONTACT: Michael Bateman, 502-560-2723, or Bonnie Otto, 502-560-3019, both of Capital Holding Corporation/
 (CPH) CO: Capital Holding Corporation ST: Kentucky IN: INS SU: ERN


CM -- CH010 -- 6323 10/28/92 18:06 EST
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Date:Oct 28, 1992
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