Alfa Corporation Reports Record Third Quarter and Nine Month Results.MONTGOMERY Montgomery, city, United States Montgomery, city (1990 pop. 187,106), state capital and seat of Montgomery co., E central Ala., near the head of navigation on the Alabama River just below the confluence of the Coosa and Tallapoosa rivers, and in the rich , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Oct. 16, 1998--Alfa Corporation (Nasdaq/NM:ALFA) today announced record operating results for the third quarter and first nine months ended September September: see month. 30, 1998. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the third quarter of 1998 increased 16.6% to a record $15,238,529, or $0.37 per share, compared with operating income of $13,068,940, or $0.32 per share, for the third quarter of 1997. Net income, including net realized investment gains and losses was $15,124,058, or $0.37 per share compared with $13,653,270, or $0.33 per share. Premium revenue for the quarter increased 5.1% to $98,732,729. Operating income for the first nine months of 1998 increased 11.3% to a record $40,531,672, or $0.99 per share, compared with $36,424,143, or $0.89 per share, a year ago. After including realized investment gains, net income for the first nine months of 1998 was a record $43,065,875, or $1.05 per share, compared with $40,400,190 or $0.99 per share. Premium revenue for the first nine months of 1998 increased 5.9% to $292,818,529. The per share amounts represent both Basic and Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . They are computed using basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. average shares outstanding, which are not materially different. Alfa's Chairman, Goodwin L. Myrick, said, "We are pleased to report continued favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. comparisons for the third quarter and first nine months of 1998. The outlook for the remainder of 1998 remains positive. The upward trends have put us on track for a record year and we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that our growth will continue." The Company also reported that claims from Hurricane Georges This article is about Atlantic hurricane of 1998. For other storms of the same name, see Hurricane Georges (disambiguation). Hurricane Georges (IPA: [ʒɔʒ] , which occurred during the last week of September will total approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $15 million for the Alfa Group Alfa Group Consortium is one of Russia's largest privately owned financial-industrial conglomerates, with interests in oil and gas, commodities trading, commercial and investment banking (Alfa Bank), insurance, retail trade and telecommunications. . Based on the intercompany pooling arrangement and Alfa group wide reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. protection, the impact on operating results of Alfa Corporation was not significant. Alfa Corporation is engaged in insurance and financial activities through its subsidiaries. The common stock of Alfa Corporation is traded on the Nasdaq Stock Market's National Market under the symbol ALFA.
(table follows)
ALFA CORPORATION
FINANCIAL HIGHLIGHTS
(Unaudited)
Nine Months Ended September 30,
------------------------------------
1998 1997 % Change
------------ ------------ ---------
Premiums and Policy Charges $292,818,529 $276,643,529 5.85%
Net Investment Income 47,069,340 42,432,029 10.93%
Realized Investment Gains 3,898,774 6,116,996 (36.26%)
Other Income 1,652,280 1,561,290 5.83%
------------ ------------ ---------
Total Revenues 345,438,923 326,753,844 5.72%
------------ ------------ ---------
Total Expenses 282,756,963 267,807,445 5.58%
------------ ------------ ---------
Income Before Provision
for Income Taxes 62,681,960 58,946,399 6.34%
Provision for Income Taxes 19,616,085 18,546,209 5.77%
------------ ------------ ---------
Net Income $ 43,065,875 $ 40,400,190 6.60%
============ ============ =========
Net Income Per Share
Basic and Diluted $1.05 $0.99
===== =====
----------------------------------------------------------------------
Operating Income(a) $ 40,531,672 $ 36,424,143 11.28%
============ ============ =========
Operating Income Per Share
Basic and Diluted $0.99 $0.89
===== =====
Average Number of Shares
Outstanding
Basic 40,826,676 40,786,712
============ ===========
Diluted 41,135,131 40,893,084
============ ===========
(a) Operating income excludes realized investment gains and related
taxes.
Three Months Ended September 30,
------------------------------------
1998 1997 % Change
------------ ------------ ---------
Premiums and Policy Charges $ 98,732,729 $ 93,919,207 5.13%
Net Investment Income 16,243,369 14,515,423 11.90%
Realized Investment Gains (176,109) 898,970 (119.59%)
Other Income 564,415 432,588 30.47%
------------ ------------ ---------
Total Revenues 115,364,404 109,766,188 5.10%
------------ ------------ ---------
Total Expenses 93,018,064 89,584,881 3.83%
------------ ------------ ---------
Income Before Provision
for Income Taxes 22,346,340 20,181,307 10.73%
Provision for Income Taxes 7,222,282 6,528,037 10.63%
------------ ------------ ---------
Net Income $ 15,124,058 $ 13,653,270 10.77%
============ ============ =========
Net Income Per Share
Basic and Diluted $0.37 $0.33
===== =====
----------------------------------------------------------------------
Operating Income(a) $ 15,238,529 $ 13,068,940 16.60%
============ ============ =========
Operating Income Per Share
Basic and Diluted $0.37 $0.32
===== =====
Average Number of Shares
Outstanding
Basic 40,852,332 40,786,712
============ ===========
Diluted 41,209,050 40,958,386
============ ===========
(a) Operating income excludes realized investment gains and related
taxes.
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