AMERICAN INDEMNITY FINANCIAL CORPORATION DECLARES REGULAR DIVIDEND AND REPORTS FOURTH QUARTER AND YEAR-END 1994 RESULTS.GALVESTON Galveston (găl`vəstən), city (1990 pop. 59,070), seat of Galveston co., on Galveston Island, SE Tex.; inc. 1839. The island lies across the entrance to Galveston Bay, an inlet of the Gulf of Mexico. , Texas--(BUSINESS WIRE)--Jan. 25, 1995--American Indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. Financial Corporation, (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AIFC AIFC Macintosh AIFF Resource File (filename extension) AIFC AEK Internet Fan Club AIFC Actual Intercell Flow Cost (cellular manufacturing) AIFC Agricultural Industries and Food Committee ) today declared a regular quarterly cash dividend on its common stock of 6 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. payable Feb. 15, 1995, to stockholders of record on Feb. 8, 1995, and announced 1994 fourth quarter and year-end financial results on a preliminary and unaudited basis. For the fourth quarter ended Dec. 31, 1994, the company reported net income of $5,184,215 or $2.67 per share. Fourth quarter 1994 net income included $4,430,000 or $2.28 per share, which resulted from the company recording a deferred tax asset on its balance sheet, which was attributable to the recognition of the tax benefits of a portion of its net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carryforward carryforward 1. A business operating loss that, for tax purposes, may be claimed a certain number of years in the future, often up to 15 years. . This more than offset the decline of approximately $390,000 in net investment income for the fourth quarter of 1994 as compared to the fourth quarter of 1993. Substantially all of this decrease was attributable to lower interest income on certain variable rate derivative securities Derivative security A financial security such as an option or future whose value is derived in part from the value and characteristics of another security, the underlying asset. held by the company in its investment portfolio. As previously disclosed in the company's SEC filings, while the company believes that the principal on these securities is assured at maturity, their yield rates decline as LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). rates increase. The fourth quarter of 1994 is the first quarter in which the decreased yield rates have had any significant adverse impact on net income. Absent decreases in LIBOR rates, these reduced yield rates are expected to continue. The remainder of changes to net income for the fourth quarter of 1994 were attributable to the company's underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. results. For the fourth quarter ended Dec. 31, 1993, the company reported net income of $1,637,867 or 84 cents per share. For the year ended Dec. 31, 1994, the company reported net income of $8,249,105 or $4.24 per share. Year-end 1994 net income included $4,430,000 or $2.28 per share, which resulted from the company recording a deferred tax asset on its balance sheet, which was attributable to the recognition of the tax benefits of a portion of its net operating loss carryforward. For the year ended Dec. 31, 1993, the company reported net income of $5,722,617 or $2.95 per share. American Indemnity Financial Corporation is the parent corporation of American Indemnity Company, American Fire and Indemnity Company, Texas General Indemnity Company and American Computing computing - computer Company, all of Galveston. -0-
AMERICAN INDEMNITY FINANCIAL CORPORATION
Consolidated Financial Highlights (Unaudited)
Three Months Ended December 31,
1994 1993
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Net premiums written $16,265,640 $15,788,934
Premiums earned 16,426,661 15,892,906
Net investment income 992,676 1,382,619
Realized investment gains 50,981 161,559
Net income 5,184,215 1,637,867
Earnings per share summary:
Net income $2.67 84 cents
Weighted average shares outstanding 1,946,710 1,946,277
Years Ended December 31,
1994 1993
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Net premiums written $66,174,092 $66,168,341
Premiums earned 65,346,464 64,081,902
Net investment income 4,703,398 5,252,684
Realized investment gains (losses) (31,355) 1,274,693
Net income 8,249,105 5,722,617
Earnings per share summary:
Net income $4.24 $2.95
Weighted average shares outstanding 1,946,685 1,938,173
CONTACT: American Indemnity Financial Corp., Galveston Phillip E. Apgar, 409/766-4612 |
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