Printer Friendly

ALLIED GROUP REPORTS HEALTHY SECOND QUARTER AND MIDYEAR EARNINGS

 ALLIED GROUP REPORTS HEALTHY SECOND QUARTER AND MIDYEAR EARNINGS
 DES MOINES, Iowa, July 22 /PRNewswire/ -- Allied Group, Inc. (NASDAQ: ALGR) today issued its earnings release for the second quarter and for the six months ended June 30. "Because we had a number of inquiries from investors concerning the effect of the California earthquakes, the L.A. riots, the Chicago flood and street disturbances, and the hail that pelted Kansas City, we issued estimated earnings on July 7 to indicate these events had little effect on Allied Group, Inc.," said Chairman and President John E. Evans. "Now that accounting procedures are completed, I can say our estimates were on target."
 Fully diluted earnings per share before net realized gains were $0.63 for the second quarter and $1.37 for the six months compared with $0.11 and $0.74 for the same periods of 1991. Including realized gains, the earnings were $0.65 for the quarter and $1.49 for the year to date; comparable earnings in 1991 were $0.18 and $0.86. Net income rose to $14.4 million at June 30, 1992 from $7.3 million at June 30, 1991, a healthy 97 percent increase.
 "The sale of 1,725,000 common shares in the first quarter allowed us to raise capital needed to finance additional property-casualty growth and increase our participation in the Allied pool to 60 percent from 53 percent as of Jan. 1, 1992," said Evans. "The positive effects of taking on more of the business showed in many ways."
 -- Consolidated revenues grew to $215 million as of midyear 1992 from $172.1 million at midyear 1991.
 -- Total invested assets increased 21 percent to $432.6 million from $356.8 million at the previous year-and.
 -- Despite lower interest rates, investment income was up 13 percent to $16 million by June 30, 1992 from $14.1 million at the same date a year ago.
 "Of course the pooling change had a dramatic influence on property- casualty results, but they were also helped by new sales, additional transfer business, and rate increases," reported Evans. Net written premiums for the pool increased 15 percent to $247.7 million at midyear from $215.8 million at June 30, 1991. Allied Group, Inc.'s portion of net earned premiums increased 29 percent to $139.2 million from $108.1 million.
 Rate increases played a role in improving the property-casualty segment's midyear 1992 statutory combined ratio (after policyholder dividends) to 101.3 from 109.6 at midyear 1991, but the major factor was reduced wind and hail losses. Year to date those losses came to only $0.49 per share despite a catastrophic June hailstorm in rural Kansas; at June 30, 1991 they totaled $1.07 per share. The underwriting loss (on a generally accepted accounting principles basis) was $3.4 million compared with $12.3 million at the previous midyear.
 "In my annual message to stockholders," Evans recalled, "I told them if 1992 was not fraught with storms, the property-casualty segment would resume its position as the dominant contributor to operating profit." Midyear consolidated income before income taxes was $19.9 million, a 113 percent hike from $9.4 million at June 30, 1991; $13.8 million came from the property-casualty segment that had produced $3.1 million at midyear 1991.
 Allied Group, Inc's other segments' contributions to midyear income before taxes were not a lot different from a year ago. Excess & surplus lines, which was affected by property damage from the L.A. and Chicago riots and weather-related losses in Texas, produced $2.4 million in income -- down from $2.8 million. Investment services registered a modest increase to $2.8 million from $2.3 million. Data processing's income was almost even at $1.5 million.
 "Book value per share is a good measure of asset value," said Evans. "At June 30, ours was $20.32, up from $19.77 at year-end 1991. An immeasurable asset is the value of our people in leadership roles. I welcome James D. Kirkpatrick's contributions in his new position as president of Allied Group, Inc.'s property-casualty subsidiaries.
 Allied Group, Inc. is a regional property-casualty insurance holding company specializing in personal lines. The company uses independent agencies, exclusive agencies, and direct response marketing to offer products in the suburban and rural areas of central and western states.
 ALLIED GROUP, INC.
 Summarized Consolidated Income Statement
 (Unaudited)
 Periods ended Three Months Six Months
 June 30 1992 1991 1992 1991
 Premiums earned $78,978,425 $60,338,840 $154,033,596 $118,514,573
 Investment income
 excluding realized
 gains 8,328,477 6,807,163 15,954,887 14,059,668
 Realized investment
 gains 253,546 839,945 1,671,285 1,363,079
 Investment services 7,925,879 7,095,948 15,534,331 12,535,177
 Other income 12,748,747 12,626,244 27,797,209 25,668,070
 Revenues 108,235,074 87,708,140 214,991,308 172,140,567
 Losses and
 expenses 99,453,999 85,874,372 195,092,113 162,784,697
 Income before
 income taxes 8,781,075 1,833,768 19,899,195 9,355,870
 Income taxes 2,170,133 85,691 5,512,383 2,066,787
 Net income 6,610,942 1,748,077 14,386,812 7,289,083
 Fully diluted
 earnings per
 share
 Net operating
 income $0.63 $0.11 $1.37 $0.74
 Realized investment
 gains, after tax 0.02 0.07 0.12 0.12
 Net income $0.65 $0.18 $1.49 $0.86
 Weighted average
 shares 9,754,872 7,810,249 9,205,235 7,669,497
 Wind and hail
 losses per share $0.41 $0.90 $0.49 $1.07
 Primary earnings
 per share $0.86 $0.15 $2.09 $1.19
 Dividends paid per
 common share $0.16 $0.14 $0.32 $0.28
 ALLIED GROUP, INC.
 Summarized Consolidated Balance Sheet
 (unaudited)
 Periods Ended June 30, 1992 Dec. 31, 1991
 Assets
 Invested assets (market
 value of $449,630,408
 and $376,512,872) $432,596,420 $356,787,902
 Accounts Receivable 51,813,874 40,814,331
 Securities held for sale 45,651,564 59,177,922
 Deferred policy acquisition
 costs 28,424,130 23,311,650
 Other assets 75,996,565 77,544,051
 Total assets $634,482,553 $557,635,856
 Liabilities
 Loss and loss settlement
 expense reserves $214,369,435 $179,941,864
 Unearned premium reserves 128,449,635 106,133,222
 Notes payable-nonrecourse 55,978,507 73,365,971
 Notes payable-recourse 5,256,889 5,757,636
 Guarantee of ESOP
 obligations 31,490,000 33,140,000
 Other liabilities 35,329,443 38,924,815
 Total liabilities 470,873,909 437,263,508
 Stockholder's equity 163,608,644 120,372,348
 Total liabilities and
 stockholder's equity $634,482,553 $557,635,856
 Number of shares outstanding
 Preferred stock 3,312,979 3,367,944
 Common stock 6,182,294 4,281,318
 Total shares outstanding 9,495,273 7,649,262
 Book value per share $ 20.32 $ 19.77
 Investment yield
 (percent) 7.7 8.3
 ALLIED GROUP, INC.
 Segment Information
 (unaudited)
 Periods ended Three months Six months
 June 30, 1992 1991 1992 1992
 Revenues (A)
 Property-casualty $79,537,392 $62,466,941 $156,435,756 $123,527,395
 Excess & surplus
 lines 9,230,680 6,573,143 17,668,919 12,540,633
 Investment services 8,167,231 7,250,768 16,022,199 12,990,314
 Data processing 9,295,208 6,062,302 18,329,581 11,853,413
 Eliminations and
 other 2,004,563 5,354,986 6,534,853 11,228,812
 Total $108,235,074 $87,708,140 $214,991,308 $172,140,567
 Income before
 income taxes (A)
 Property-casualty $6,044,711 ($2,256,274) $13,821,018 $3,114,649
 Excess & surplus
 lines 866,952 1,757,988 2,440,952 2,848,453
 Investment services 1,588,734 1,638,770 2,791,998 2,284,435
 Data processing 613,582 883,946 1,468,524 1,436,638
 Eliminations and
 other (B) (332,904) (190,662) (623,297) (328,305)
 Total $8,781,075 $1,833,768 $19,899,195 $9,355,870
 6/30/92 12/31/91 6/30/91
 Assets
 Property-casualty $495,358,720 $404,631,395 $387,144,365
 Excess & surplus
 lines 75,020,489 67,247,764 60,107,781
 Investment services 87,273,946 107,794,717 79,877,449
 Data processing 12,738,588 10,164,688 8,885,308
 Eliminations and
 other (35,909,190) (32,202,708) (28,148,786)
 Total $634,482,553 $557,635,856 $507,866,117
 (A) -- Includes realized investment gains or losses.
 (B) -- Includes interest expense of 275,870 and $355,534 for the three months ended 1992 and 1991, respectively. Interest expense for the six months ended June 30, 1992 and 1991 was $584,672 and $694,084, respectively.
 ALLIED GROUP, INC.
 Supplemental Insurance Information
 (unaudited)
 Periods ended Three months Six months
 June 30 1992 1991 1992 1991
 Property-casualty
 segment results:
 Net premium
 results $75,122,662 $58,974,044 $160,523,519 $114,396,272
 Premiums earned $70,979,845 $54,860,428 $139,217,155 $108,073,498
 Loss & loss
 adjust. expenses 50,978,005 47,604,817 99,023,910 85,391,787
 Underwriting
 expenses 23,059,517 16,869,645 47,964,497 34,593,490
 Statutory
 underwriting
 loss (3,057,677) (9,614,034) (7,771,252) (11,911,779)
 GAAP adjustments 544,841 (248,753) 4,373,669 (427,469)
 GAAP underwriting
 loss (2,512,836) (9,862,787) (3,397,583) (12,339,248)
 Investment income
 excluding realized
 gains 7,160,005 5,888,244 13,643,346 12,323,037
 Realized investment
 gains 226,343 796,295 1,230,657 1,280,708
 Other income 1,171,199 921,974 2,344,598 1,850,152
 Income before
 income taxes $6,044,711 ($2,256,274) $13,821,018 $3,114,649
 GAAP combined ratio 103.5 118.0 102.4 111.4
 Wind and hail
 losses $6,039,669 $10,618,948 $6,767,536 $12,481,517
 Impact of wind and
 hail losses on
 combined ratio 8.5 19.4 4.9 11.5
 Excess & surplus lines
 segment results:
 Net premiums
 written $8,278,880 $5,975,402 $15,826,490 $10,606,971
 Premium earned $7,998,580 $5,478,412 $14,816,441 $10,441,075
 Loss & loss
 adjust. expenses 5,868,341 2,956,069 10,755,578 6,508,403
 Underwriting
 expenses 2,413,042 1,989,098 4,828,659 3,233,518
 Statutory
 underwriting
 gain (loss) (282,803) 533,245 (767,796) 699,154
 GAAP adjustments (82,345) 130,012 356,270 49,741
 GAAP underwriting
 gain (loss) (365,148) 663,257 (411,526) 748,895
 Investment income
 excluding realized
 gains 1,204,897 1,051,081 2,411,850 2,017,187
 Realized investment
 gains 27,203 43,650 440,628 82,371
 Income before
 income taxes $866,952 $1,757,988 $2,440,952 $2,848,453
 GAAP combined
 ratio 104.6 87.9 102.8 92.8
 ALLIED GROUP, INC.
 Property-Casualty Statutory Combined Ratios
 (unaudited)
 Six Months June 30 1992 1991
 Premiums Combined Premiums Combined
 Earned Ratio Earned Ratio
 Statutory Underwriting
 By Line:
 Personal automobile $72,387,180 99.5 $53,266,607 104.7
 Homeowners 20,195,248 107.6 14,716,411 141.5
 Personal lines 92,582,428 101.3 67,983,018 112.7
 Commercial automobile 8,751,494 97.5 8,210,130 101.8
 Workers' compensation 8,791,371 105.1 6,661,014 120.1
 Other property/
 liability 28,030,820 102.3 24,222,914 103.8
 Other lines 1,061,042 54.9 996,422 50.6
 Commercial lines 46,634,727 100.8 40,090,480 104.6
 Total 139,217,155 101.3 108,073,498 109.6
 Loss ratio 58.4 66.0
 Loss adjustment
 expense ratio 29.9 30.2
 Underwriting expense ratio 0.3 0.4
 Statutory combined ratio 101.3 109.6
 -0- 7/22/92
 /CONTACT: Jim Shaffer of Allied Group, 515-280-4326/
 (ALGR) CO: Allied Group, Inc. ST: Iowa IN: INS SU: ERN


TS-TM -- NY002 -- 1726 07/22/92 09:32 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 22, 1992
Words:2063
Previous Article:LITTELFUSE REPORTS SECOND QUARTER NET; ALL-TIME HIGH IN SALES
Next Article:HEALTHCARE IMAGING SERVICES, INC. REPORTS COMMENCEMENT OF TRADING ON NATIONAL MARKET SYSTEM OF NASDAQ
Topics:


Related Articles
ALLIED GROUP RELEASES ESTIMATED EARNINGS TO ALLAY INVESTOR CONCERNS
C.H. HEIST CORPORATION'S SECOND QUARTER SALES AND EARNINGS MATCH PREVIOUS YEAR'S PERFORMANCE
ALLIED GROUP, INC. ESTIMATES EARNINGS
ALLIED GROUP, INC. REPORTS BEST SECOND QUARTER EVER
ALLIED GROUP INC. REPORTS ALL-TIME BEST QUARTER
ALLIED LIFE FINANCIAL CORPORATION REPORTS 32% INCREASE IN OPERATING INCOME
ALLIED GROUP, INC. REPORTS STRONG START TO 1995
ALLMERICA PROPERTY & CASUALTY REPORTS SECOND QUARTER OPERATING INCOME OF $0.46 PER SHARE
CITIZENS CORPORATION REPORTS SECOND QUARTER OPERATING INCOME OF $0.34 PER SHARE
Allied Holdings Reports Record Second Quarter Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters