Alleghany Corp. Announces Earnings for Third Quarter 1997.NEW YORK--(BUSINESS WIRE)--Oct. 27, 1997--Net earnings of Alleghany Corporation (NYSE-Y) were $4.13 per share of common stock in the third quarter of 1997 compared with $2.71 per share in the third quarter of 1996, John J. Burns, Jr., President and chief executive officer of Alleghany, announced today. Net earnings were $10.57 per share of common stock in the first nine months of 1997, compared with $8.10 per share of common stock in the first nine months of 1996. Net losses on investment transactions after taxes in the first nine months of 1997 totalled $601 thousand, or $0.08 per share, compared with net gains of $1.4 million, or $0.19 per share, in the first nine months of 1996. Net earnings in the third quarter of 1997 included a pre-tax contribution Pre-tax contribution Payment to an account made with funds from a worker's paycheck before federal income taxes are deducted. of $30.2 million at Alleghany's Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. Title and Trust operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon , reflecting strong activity in commercial real estate markets, increased escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. and information sales revenue and a strong performance from Alleghany Asset Management (Chicago Title's investment management businesses), offsetting weakness in residential real estate markets. In the third quarter of 1997, Alleghany's Underwriters Re Group and World Minerals operating units each recorded higher revenues and earnings as compared with the third quarter of 1996. Highlights are as follows (in millions, except for shares and per share amounts): -0-
Quarters Ended Nine Months Ended
September 30 September 30
------------ ------------
1997 1996 1997 1996
---- ---- ---- ----
Revenues $ 575.9 $ 538.7 $ 1,629.2 $ 1,531.9
Earnings before taxes $ 44.1 $ 30.1 $ 111.9 $ 89.0
Net earnings $ 30.0 $ 19.9 $ 76.9 $ 59.5
Net earnings per
share of common stock(a) $ 4.13 $ 2.71 $ 10.57 $ 8.10
Average number of
outstanding shares
of common
stock(a) 7,257,379 7,355,084 7,267,786 7,352,901
(a) Adjusted to reflect dividends of common stock declared in March
of 1996 and 1997.
-0-
The comparative contributions to earnings before taxes, made by
Alleghany's operating units Chicago Title and Trust Company (title
insurance and investment management), Underwriters Re Group, Inc.
(reinsurance and insurance businesses) and World Minerals Inc.
(industrial minerals), as well as by Alleghany's parent-company and
other operations, were as follows (in millions):
-0-
Quarters Ended Nine Months Ended
September 30 September 30
------------ ------------
1997 1996 1997 1996
---- ---- ---- ----
Chicago Title $ 30.2 $ 17.8 $ 72.6 $ 57.0
Underwriters Re Group 9.8 8.8 31.7 23.9
World Minerals 8.3 4.2 18.2 14.3
Parent company and other (4.2) (0.7) (10.6) (6.2)
----- ------ ------ -----
$ 44.1 $ 30.1 $ 111.9 $ 89.0
-0-
On a per-share, after-tax basis, the foregoing earnings
contributions may be broken down as follows (adjusted to reflect
dividends of common stock declared by Alleghany in March of 1996 and
1997):
-0-
Quarter Ended September 30
Chicago Underwriters World Parent co.
Title Re Group Minerals and other Total
1997
Operations $2.70 $0.97 $0.81 $(0.37) $4.11
Security transactions 0.03 0.01 --- (0.02) 0.02
---- ---- --- ------ ----
Total $2.73 $0.98 $0.81 $(0.39) $4.13
===== ===== ===== ======= =====
1996
Operations $1.59 $0.83 $0.22 $(0.01) $2.63
Security transactions --- 0.08 --- --- 0.08
--- ---- --- --- ----
Total $1.59 $0.91 $0.22 $(0.01) $2.71
===== ===== ===== ======= =====
Nine Months Ended September 30
Chicago Underwriters World Parent co.
Title Re Group Minerals and other Total
1997
Operations $6.54 $3.06 $1.61 $(0.56) $10.65
Security transactions 0.05 0.16 --- (0.29) (0.08)
---- ---- --- ------ ------
Total $6.59 $3.22 $1.61 $(0.85) $10.57
===== ===== ===== ======= ======
1996
Operations $4.98 $2.32 $1.02 $(0.41) $7.91
Security transactions 0.11 0.08 --- --- 0.19
---- ---- --- --- ----
Total $5.09 $2.40 $1.02 $(0.41) $8.10
===== ===== ===== ======= =====
-0-
As of September 30, 1997, Alleghany beneficially owned
approximately 7.43 million shares, or 4.8 percent,of the outstanding
common stock of Burlington Northern Santa Fe Corporation, which had
an aggregate market value on that date of approximately $718.1
million, or $96.625 per share, compared with a market value on
December 31, 1996 of $641.9 million, or $86.375 per share. The
aggregate cost of such shares is approximately $253.7 million, or
$34.15 per share.
Alleghany common stockholders' equity per share as of September
30, 1997 was $212.17, a 10.1 percent increase from common
stockholders= equity per share of $192.69 as of December 31, 1996,
and a 13.5 percent increase from common stockholders= equity per
share of $186.95 as of September 30, 1996 (as adjusted to reflect
dividends of common stock declared by Alleghany in March of 1996 and
1997).
-0-
ALLEGHANY CORPORATION AND SUBSIDIARIES
COMBINING STATEMENTS OF EARNINGS
(dollars in thousands)
(unaudited)
NINE MONTHS ENDED SEPTEMBER 30, 1997
UNDER-
CHICAGO WORLD WRITERS RE
TITLE MINERALS GROUP
Revenues
Title premiums, escrow and
trust fees $ 1,038,224 $ 0 $ 0
Net reinsurance premiums earned 0 0 280,200
Interest, dividend and other income 49,533 (582) 55,630
Net mineral and filtration sales 0 153,357 0
Net gain (loss) on investment
transactions 582 0 1,738
Total revenues 1,088,339 152,775 337,568
Costs and expenses
Commissions and brokerage expenses 365,293 0 67,451
Salaries, administrative and other
operating expenses 573,980 29,322 25,843
Provision for title losses and
other claims 72,621 0 0
Property and casualty losses & LAE 0 0 200,541
Cost of mineral and filtration sales 0 100,818 0
Interest expense 3,893 4,388 12,013
Corporate administration 0 0 0
Total costs and expenses 1,015,787 134,528 305,848
Earnings (loss) before
income taxes $ 72,552$ 18,247 $ 31,720
-0-
CORPORATE
ACTIVITIES COMBINED
Revenues
Title premiums, escrow and trust fees $ 0 $ 1,038,224
Net reinsurance premiums earned 0 280,200
Interest, dividend and other income 53,720 158,301
Net mineral and filtration sales 0 153,357
Net gain (loss) on investment transactions (3,245) (925)
Total revenues 50,475 1,629,157
Costs and expenses
Commissions and brokerage expenses 0 432,744
Salaries, administrative and other
operating expenses 38,170 667,315
Provision for title losses and
other claims 0 72,621
Property and casualty losses & LAE 0 200,541
Cost of mineral and filtration sales 0 100,818
Interest expense 7,420 27,714
Corporate administration 15,515 15,515
Total costs and expenses 61,105 1,517,268
Earnings (loss) before income taxes ($ 10,630) 111,889
Income taxes 35,030
Net earnings $ 76,859
-0-
NINE MONTHS ENDED SEPTEMBER 30, 1996
CHICAGO WORLD UNDER-
TITLE MINERALS WRITERS
GROUP
Revenues
Title premiums, escrow
and trust fees $ 966,603 $ 0 $ 0
Net reinsurance
premiums earned 0 0 269,023
Interest, dividend
and other income 45,395 362 45,639
Net mineral and
filtration sales 0 150,666 0
Net gain (loss) on
investment transactions 1,221 0 929
Total revenues 1,013,219 151,028 315,591
Costs and expenses
Commissions and brokerage expenses 352,801 0 68,052
Salaries, administrative and other
operating expenses 536,816 32,942 22,048
Provision for title losses and
other claims 62,340 0 0
Property and casualty losses & LAE 0 0 195,840
Cost of mineral and filtration sales 0 99,049 0
Interest expense 4,270 4,724 5,767
Corporate administration 0 0 0
Total costs and expenses 956,227 136,715 291,707
Earnings (loss) before
income taxes $ 56,992$ 14,313 $ 23,884
-0-
CORPORATE
ACTIVITIES COMBINED
Revenues
Title premiums, escrow and trust fees $ 0 $ 966,603
Net reinsurance premiums earned 0 269,023
Interest, dividend and other income 52,026 143,422
Net mineral and filtration sales 0 150,666
Net gain (loss) on investment transactions 0 2,150
Total revenues 52,026 1,531,864
Costs and expenses
Commissions and brokerage expenses 0 420,853
Salaries, administrative and other
operating expenses 36,811 628,617
Provision for title losses and
other claims 0 62,340
Property and casualty losses & LAE 0 195,840
Cost of mineral and filtration sales 0 99,049
Interest expense 7,501 22,262
Corporate administration 13,907 13,907
Total costs and expenses 58,219 1,442,868
Earnings (loss) before income taxes ($ 6,193) 88,996
Income taxes $29,483
Net earnings $59,513
-0-
ALLEGHANY CORPORATION AND SUBSIDIARIES
COMBINING STATEMENTS OF EARNINGS
(dollars in thousands)
(unaudited)
QUARTER ENDED SEPTEMBER 30, 1997
UNDER-
CHICAGO WORLD WRITERS RE
TITLE MINERALS GROUP
Revenues
Title premiums, escrow and trust fees $373,148 $ 0 $ 0
Net reinsurance premiums earned 0 0 95,658
Interest, dividend and other income 17,843 (145) 19,399
Net mineral and filtration sales 0 53,129 0
Net gain (loss) on investment transactions 286 0 71
Total revenues 391,277 52,984 115,128
Costs and expenses
Commissions and brokerage expenses 127,188 0 22,609
Salaries, administrative and other
operating expenses 205,763 9,913 8,335
Provision for title losses and
other claims 26,465 0 0
Property and casualty losses & LAE 0 0 70,405
Cost of mineral and filtration sales 0 33,356 0
Interest expense 1,667 1,446 4,004
Corporate administration 0 0 0
Total costs and expenses 361,083 44,715 105,353
Earnings (loss) before income taxes $ 30,194 $ 8,269 $ 9,775
-0-
CORPORATE
ACTIVITIES COMBINED
Revenues
Title premiums, escrow and trust fees $ 0 $373,148
Net reinsurance premiums earned 0 95,658
Interest, dividend and other income 16,782 53,879
Net mineral and filtration sales 0 53,129
Net gain (loss) on investment transactions (245) 112
Total revenues 16,537 575,926
Costs and expenses
Commissions and brokerage expenses 0 149,797
Salaries, administrative and other
operating expenses 12,148 236,159
Provision for title losses and
other claims 0 26,465
Property and casualty losses & LAE 0 70,405
Cost of mineral and filtration sales 0 33,356
Interest expense 2,719 9,836
Corporate administration 5,817 5,817
Total costs and expenses 20,684 531,835
Earnings (loss) before income taxes ($ 4,147) 44,091
Income taxes 14,079
Net earnings $ 30,012
-0-
QUARTER ENDED SEPTEMBER 30, 1996
UNDER-
CHICAGO WORLD WRITERS RE
TITLE MINERALS GROUP
Revenues
Title premiums, escrow and trust fees $342,873 $ 0 $ 0
Net reinsurance premiums earned 0 0 91,273
Interest, dividend and other income 15,423 315 17,546
Net mineral and filtration sales 0 51,833 0
Net gain (loss) on investment
transactions 1 0 949
Total revenues 358,297 52,148 109,768
Costs and expenses
Commissions and brokerage expenses 128,051 0 21,783
Salaries, administrative and other
operating expenses 186,511 13,031 7,899
Provision for title losses and
other claims 24,632 0 0
Property and casualty losses & LAE 0 0 67,271
Cost of mineral and filtration sales 0 33,328 0
Interest expense 1,333 1,553 3,953
Corporate administration 0 0 0
Total costs and expenses 340,527 47,912 100,906
Earnings (loss) before
income taxes $ 17,770 $ 4,236 $ 8,862
-0-
CORPORATE
ACTIVITIES COMBINED
Revenues
Title premiums, escrow and trust fees $ 0 $342,873
Net reinsurance premiums earned 0 91,273
Interest, dividend and other income 18,515 51,799
Net mineral and filtration sales 0 51,833
Net gain (loss) on investment transactions 0 950
Total revenues 18,515 538,728
Costs and expenses
Commissions and brokerage expenses 0 149,834
Salaries, administrative and other
operating expenses 12,098 219,539
Provision for title losses and
other claims 0 24,632
Property and casualty losses & LAE 0 67,271
Cost of mineral and filtration sales 0 33,328
Interest expense 2,531 9,370
Corporate administration 4,608 4,608
Total costs and expenses 19,237 508,582
Earnings (loss) before income taxes ($ 722) 30,146
Income taxes $10,242
Net earnings $19,904
CONTACT: Alleghany Corp., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of R.M. Hart, 212/752-1356 |
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