AmerUs Group Reports Second Quarter Results.DES MOINES, Iowa “Des Moines” redirects here. For other uses, see Des Moines (disambiguation). Des Moines (pronounced /dɪˈmɔɪn/ in English, -- AmerUs Group Co. (NYSE NYSE See: New York Stock Exchange :AMH AMH Abington Memorial Hospital (Abington, PA) AMH Anti-Müllerian Hormone AMH Australian Medicines Handbook AMH Automated Material Handling AMH Aviation Structural Mechanic (Hydraulics) US Navy Rating ), a leading producer of life insurance and annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. products, today reported quarterly results, with second quarter 2006 net income of $45.3 million, or $1.09 per 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. share, an increase of 27 percent compared with $35.6 million, or $.83 per diluted share in the second quarter of 2005. Adjusted net 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 second quarter of 2006 was a record $51.4 million, or $1.24 per diluted share, compared with $47.0 million, or $1.10 per diluted share a year ago.(1) 2006 net income and adjusted net operating income figures include the impact of expensing stock options (full year impact of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.05 per diluted common share). The expensing of stock options commenced January January: see month. 1, 2006 in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Statement of Financial Accounting Standards 123R, Share-Based Payment, A Revision (programming) revision - A release of a piece of software which is not a major release or a bugfix, but only introduces small changes or new features. of Accounting for Stock-Based Compensation. Commenting on the company's second quarter results, chairman, president and chief executive officer Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs C. Godlasky said, "We are very pleased with our strong quarterly results. We remain focused on the execution of our strategy." Protection Product Sales(2) and Results Second quarter fixed life sales grew to $33.3 million, a seven percent increase over second quarter 2005 sales of $31.0 million, driven by a 27 percent increase in indexed life sales. Sales of indexed products amounted to 93 percent of total fixed life sales during the first half of 2006 compared to 74 percent a year ago. Year to date, fixed life sales grew more than 10 percent, to $63.1 million, compared to $57.1 million in 2005. Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta segment earnings increased more than 10 percent, totaling $45.7 million compared to $41.4 million in the second quarter of 2005. The increase in segment earnings was due to continued growth in indexed life sales, higher investment yields, lower deferred acquisition cost (DAC See D/A converter and discretionary access control. DAC - Digital to Analog Converter ) amortization and lower expenses. Year to date, pre-tax protection segment earnings totaled $84.9 million compared to $85.4 million for the first six months of 2005. Pre-tax earnings were impacted by lower net investment income growth as capital was shifted from this segment to support other corporate initiatives. Accumulation Accumulation 1) In the context of individual investing, it is the process of contributing cash to invest in securities over a period of time in order to build a portfolio of desired value. Dividends and capital gains are also reinvested during this process. Product Sales(2) and Results Sales of fixed annuity Fixed Annuity An insurance contract in which the insurance company makes fixed dollar payments to the annuitant for the term of the contract, usually until the annuitant dies. The insurance company guarantees both earnings and principal. products for the quarter totaled $628 million, compared to $713 million in the second quarter of 2005 and $517 million in the first quarter of 2006. Sales of indexed annuities comprised 93 percent of second quarter fixed annuity sales compared to 90 percent a year ago. Year to date, sales of fixed annuity products totaled $1.14 billion compared to $1.28 billion in 2005. Additionally, the company issued $175 million of new funding agreements Funding Agreement Illiquid insurance contracts that provide guaranteed principal repayment and interest payments for a predetermined period of time. Notes: Funding agreements are marketed to mutual fund companies and municipal reinvestments. during the quarter, increasing total funding agreements to approximately $1.1 billion. Pre-tax segment earnings increased 27 percent to $53.3 million for the second quarter of 2006, compared to $41.9 million a year ago. Segment earnings grew primarily due to growth in indexed annuity reserves and higher product spreads resulting from lower interest credited on multi-year guarantee products. This growth in earnings was partially offset by higher DAC amortization as a result of higher lapses on traditional fixed annuities Fixed annuities Contracts in which an insurance company or issuing financial institution pays a fixed dollar amount of money per period. in the second quarter and slightly higher legal expenses. Year to date, pre-tax segment earnings increased 32 percent to $109.3 million, compared to $82.6 million in the first half of 2005. The increase was primarily due to higher assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . Net Investment Income Net investment income was $287 million in the second quarter of 2006 compared to $277 million in the first quarter of 2005. Growth in invested assets and higher yields on new investments contributed to the increase in net investment income. The average rate on new investments in the second quarter was 6.56 percent, 123 basis points higher than a year ago. The weighted average book yield for the second quarter was 5.76 percent compared to 5.72 percent last quarter. Corporate Actions On July July: see month. 13, 2006, AmerUs Group announced it had reached an agreement under terms of which Aviva Aviva plc (LSE: AV.) is the world's fifth-largest insurance group, the biggest insurance group in the UK and the second-largest insurance group in Canada. Worldwide, it trails behind AXA, Allianz, ING and Fortis. plc will acquire AmerUs Group for $69 per share in cash for all outstanding common shares of AmerUs Group. The transaction, which was unanimously approved by the boards of directors of Aviva and AmerUs Group, is subject to customary closing conditions, including approval by AmerUs Group shareholders and the receipt of government and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals, including the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of all waiting periods required under the Hart-Scott-Rodino Antitrust Improvements Act The Hart-Scott-Rodino Antitrust Improvements Act of 1976 (Public Law 94-435, known commonly as the HSR Act) is a set of amendments to the antitrust laws of the United States, principally the Clayton Antitrust Act. The HSR Act was signed into law by President Gerald R. of 1976. AmerUs Group expects to schedule a special meeting of its shareholders during the fourth quarter of 2006 to vote on the transaction. The companies currently expect the transaction to close before December December: see month. 31, 2006. Additional Financial Information Further detailed financial information, including operating segment income, investment composition, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and product distribution by channel, can be found in AmerUs Group's Financial Supplement, which is available by accessing the company's web site at www.amerus.com or by contacting the company's investor relations Investor relations The process by which the corporation communicates with its investors. department. Additional Information and Where to Find It This communication may be deemed to be solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual material in respect of the proposed acquisition of AmerUs Group Co. by Aviva plc. In connection with the proposed acquisition, AmerUs Group will file with or furnish fur·nish tr.v. fur·nished, fur·nish·ing, fur·nish·es 1. To equip with what is needed, especially to provide furniture for. 2. to the Securities and Exchange Commission all relevant materials, including a proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. on Schedule 14A. SECURITY HOLDERS OF AMERUS GROUP ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH OR FURNISHED fur·nish tr.v. fur·nished, fur·nish·ing, fur·nish·es 1. To equip with what is needed, especially to provide furniture for. 2. TO THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING AMERUS GROUP'S PROXY STATEMENT WHEN IT BECOMES AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Security holders may obtain a free copy of the proxy statement, when it becomes available, and other documents filed or furnished by AmerUs Group at the Securities and Exchange Commission's web site at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . In addition, free copies of the proxy statement (when it becomes available) and other documents will also be available on AmerUs Group's website at www.amerus.com. The proxy statement and other relevant documents may also be obtained for free from AmerUs Group by directing such request to Investor Relations, AmerUs Group, PO Box 1555, Des Moines, Iowa 50306-1555. The contents of the websites referenced above are not deemed to be incorporated by reference into the proxy statement. Participants in Solicitation AmerUs Group and its directors, executive officers and certain other members of its management and employees may be deemed to be participants in the solicitation of proxies from its shareholders in connection with the proposed transaction. Information regarding the interests of such directors and executive officers is included in AmerUs Group's Proxy Statement for its 2006 Annual Meeting of Shareholders filed with the Securities and Exchange Commission on March 29, 2006, and information concerning all of AmerUs Group's participants in the solicitation will be included in the proxy statement relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the proposed transaction when it becomes available. Each of these documents is, or will be, available free of charge at the Securities and Exchange Commission's web site at www.sec.gov and from AmerUs Group at www.amerus.com or by directing such request to the address provided in the section above. Cautionary Statement Regarding Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains statements which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, including statements relating to trends in our operations and financial results and our business and products, which include words such as "anticipate," "believe," "plan," "estimate," "expect," "intend" and other similar expressions. Forward-looking statements are made based upon management's current expectations and beliefs concerning future developments and their potential effects on us. Such forward-looking statements are not guarantees of future performance. Factors that may cause our actual results to differ materially from those contemplated by these forward-looking statements include, among others, the following possibilities: (a) the shareholders of AmerUs Group may not approve and adopt the merger agreement and the transactions contemplated by the merger agreement at the special shareholder meeting; (b) the parties may be unable to obtain governmental and regulatory approvals required for the merger, or required governmental and regulatory approvals may delay the merger or result in the imposition The printing of pages on a single sheet of paper in a particular order so that they come out in the correct sequence when cut and folded. of conditions that could cause the parties to abandon abandon v. to intentionally and permanently give up, surrender, leave, desert, or relinquish all interest or ownership in property, a home or other premises, a right of way, and even a spouse, family, or children. the merger; (c) the parties may be unable to complete the merger because, among other reasons, conditions to the closing of the merger may not be satisfied or waived; (d) general economic conditions and other factors, including prevailing interest rate levels and stock and bond market performance, which may affect (1) our ability to sell our products, (2) the market value of our investments and consequently protection product and accumulation product margins and (3) the lapse rate lapse rate n. The rate of decrease of atmospheric temperature with increase in altitude. lapse rate The rate of change of any meteorological phenomenon, especially atmospheric temperature with altitude. and profitability of policies; (e) the performance of our investment portfolios which may be affected by general economic conditions, the continued credit quality of the companies whose securities we invest in and the impact of other investment transactions; (f) customer response to new products, distribution channels and marketing initiatives and increasing competition in the sale of insurance and annuities and the recruitment recruitment /re·cruit·ment/ (re-krldbomact´ment) 1. the gradual increase to a maximum in a reflex when a stimulus of unaltered intensity is prolonged. 2. of sales representatives from companies that may have greater financial resources, broader arrays of products, higher ratings and stronger financial performance may impair im·pair tr.v. im·paired, im·pair·ing, im·pairs To cause to diminish, as in strength, value, or quality: an injury that impaired my hearing; a severe storm impairing communications. our ability to retain existing customers, attract new customers and maintain our profitability; (g) our ratings and those of our subsidiaries by independent rating organizations which we believe are particularly important to the sale of our products; (h) mortality, morbidity morbidity /mor·bid·i·ty/ (mor-bid´it-e) 1. a diseased condition or state. 2. the incidence or prevalence of a disease or of all diseases in a population. mor·bid·i·ty n. , and other factors which may affect the profitability of our insurance products; (i) our ability to develop and maintain effective risk management policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental and to maintain adequate reserves for future policy benefits and claims; (j) litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. or regulatory investigations or examinations; (k) regulatory changes, interpretations, initiatives or pronouncements, including those relating to the regulation of insurance companies and the regulation and sales of their products and the programs in which they are used; (l) changes in the federal income tax and other federal laws, regulations, and interpretations, including federal regulatory measures that may significantly affect the insurance business including limitations on antitrust Antitrust The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade. immunity immunity, ability of an organism to resist disease by identifying and destroying foreign substances or organisms. Although all animals have some immune capabilities, little is known about nonmammalian immunity. , the applicability of securities laws to insurance products, minimum solvency The ability of an individual to pay his or her debts as they mature in the normal and ordinary course of business, or the financial condition of owning property of sufficient value to discharge all of one's debts. solvency n. requirements, and changes to the tax advantages offered by life insurance and annuity products or programs with which they are used; (m) the impact of changes in standards of accounting; (n) our ability to achieve anticipated levels of operational efficiencies and cost-saving initiatives and to meet cash requirements based upon projected liquidity sources; and (o) our ability to integrate the business and operations of acquired entities; (p) and various other factors discussed in the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Item 1A. Risk Factors" in our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the period ended December 31, 2005 and in our Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the period ended June June: see month. 30, 2006. There can be no assurance that other factors not currently anticipated by us will not materially and adversely affect our results of operations. You are cautioned not to place undue reliance on any forward-looking statements made by us or on our behalf. Forward-looking statements speak only as of the date the statement was made. We undertake no obligation to update or revise any forward-looking statement. AmerUs Group Co. is located in Des Moines, Iowa, and is engaged through its subsidiaries in the business of marketing individual life insurance and annuity products in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Its major subsidiaries include: AmerUs Life Insurance Company, American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Investors Life Insurance Company, Inc., Bankers Life Insurance Company of 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 and Indianapolis Indianapolis (ĭn'dēənă`pəlĭs), city (1990 pop. 731,327), state capital and seat of Marion co., central Ind., on the White River; selected 1820 as the site of the state capital (which was moved there in 1825), inc. 1847. Life Insurance Company. As of June 30, 2006, AmerUs Group's total assets were $24.7 billion and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. totaled $1.6 billion, including accumulated other comprehensive income In 1997 the Financial Accounting Standards Board issued a Statement on Financial Accounting Standards entitled “Comprehensive Income”. This statement required all income statement items to be reported either as a regular item in the income statement and or a special item as . (1) The company views adjusted net operating income, a non-GAAP financial measure, as an important indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of financial performance. When presented with net income, the combined presentation can enhance an investor's understanding of AmerUs Group's underlying profitability and normalized results from operations. The definition of adjusted net operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before , as presented in this press release, excludes, on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. , from net income items such as open block realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. and losses, deferred policy acquisition costs associated with open block realized gains and losses, non-insurance operations, the impact of derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. related market value adjustments and the release of income tax provisions. Non-GAAP measures are also used for goal setting, determining employee and management compensation and evaluating our performance on a basis comparable to that used by security analysts. A reconciliation of net income to adjusted net operating income has been included as part of this press release. (2) Sales for an insurance company are a performance measure. Sales are presented in accordance with industry practice and represent the amount of new business sold during the period. We believe sales are a measure of the productivity of our distribution networks. Sales are also a leading indicator Leading Indicator A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy, but are not always accurate. of future revenue trends. However, revenues are driven by prior period sales as well as current period sales.
AMERUS GROUP CO.
ADJUSTED NET OPERATING INCOME
($ in thousands, except share data)
Adjusted net operating income reflects net income adjusted to
eliminate certain items, such as open block realized/unrealized gains
and losses; DAC, VOBA and deferred sales inducements associated with
the open block realized/unrealized gains and losses; non-insurance
operations; derivative related market value adjustments; and the
release of income tax provisions. Adjusted net operating income shown
below does not constitute our net income computed in accordance with
GAAP. The adjustments are presented net of income taxes.
For The Three For The Six
Months Ended Months Ended
June 30, June 30,
2006 2005 2006 2005
----------------------- -----------------------
Net Income available
to common
stockholders $45,254 $35,567 $123,450 $97,055
Realized/unrealized
losses on open block
assets (A) 4,913 958 5,084 888
Net amortization of
DAC, VOBA and
deferred sales
inducements due to
open block gains or
losses (B) (663) 316 (779) 121
Net effect of
derivative related
market value
adjustments (C) 1,798 9,874 (24,859) 15,075
Other (income) loss
from non-insurance
operations (D) - (7) - 219
Income tax items (E) 93 244 (469) (19,683)
----------------------- -----------------------
Adjusted Net Operating
Income available to
common stockholders $51,395 $46,952 $102,427 $93,675
======================= =======================
Adjusted Net Operating
Income available to
common stockholders
per common share:
Basic $1.34 $1.20 $2.65 $2.38
======================= =======================
Diluted $1.24 $1.10 $2.46 $2.19
======================= =======================
Weighted average
common shares
outstanding:
Basic 38,487,501 39,264,504 38,616,506 39,412,211
======================= =======================
Diluted 41,417,538 42,751,912 41,702,996 42,845,240
======================= =======================
AMERUS GROUP CO.
NOTES TO ADJUSTED NET OPERATING INCOME
(A) Represents total open block realized/unrealized gains or losses on
assets. Open block gains or losses may vary widely between
periods. Such amounts are determined by management's timing of
individual transactions or current market conditions and do not
necessarily correspond to the underlying operating trends.
(B) Represents amortization of deferred acquisition costs (DAC), value
of business acquired (VOBA) and deferred sales inducements on the
open block realized/unrealized gains and losses that are included
in our product margins.
(C) Represents the net effect of derivative related market value
adjustments. The accounting entries consist of cash flow hedge
amortization; market value adjustments on trading securities,
derivatives, and indexed contracts; and the associated change in
amortization of DAC, VOBA and deferred sales inducements resulting
from such adjustments.
(D) Represents the net income from our property operations which are
not part of our insurance operations.
(E) Represents a reduction in the income tax accrual for the release
of provisions originally established for potential tax adjustments
which have been settled or eliminated and changes in deferred
income tax valuation allowances.
AMERUS GROUP CO.
CONSOLIDATED STATEMENTS OF INCOME
($ in thousands, except share data)
For The Three Months For The Six Months
Ended June 30, Ended June 30,
2006 2005 2006 2005
----------------------- -----------------------
Revenues:
Insurance premiums $54,845 $61,001 $108,343 $123,547
Product charges 68,740 54,638 136,802 113,671
Net investment
income 286,972 277,040 572,290 545,751
Realized/unrealized
capital gains
(losses) (62,865) 6,266 (12,220) (42,678)
Other income 11,968 11,229 24,885 23,785
----------------------- -----------------------
359,660 410,174 830,100 764,076
----------------------- -----------------------
Benefits and expenses:
Policyowner
benefits 170,791 244,203 382,783 413,786
Underwriting,
acquisition and
other expenses 42,255 38,419 83,223 79,027
Amortization of
deferred policy
acquisition costs
and value of
business acquired 46,762 35,058 115,282 87,801
Dividends to
policyowners 17,683 31,864 36,416 51,867
----------------------- -----------------------
277,491 349,544 617,704 632,481
----------------------- -----------------------
Income from continuing
operations 82,169 60,630 212,396 131,595
Interest expense 8,765 8,191 17,430 15,971
----------------------- -----------------------
Income before income
tax expense 73,404 52,439 194,966 115,624
Income tax expense 25,431 16,872 66,078 18,569
----------------------- -----------------------
Net income 47,973 35,567 128,888 97,055
Dividends on preferred
stock 2,719 - 5,438 -
----------------------- -----------------------
Net income available
to common
stockholders $45,254 $35,567 $123,450 $97,055
======================= =======================
Net income available
to common
stockholders per
common share:
Basic $1.18 $0.91 $3.20 $2.46
======================= =======================
Diluted $1.09 $0.83 $2.96 $2.27
======================= =======================
Weighted average
common shares
outstanding:
Basic 38,487,501 39,264,504 38,616,506 39,412,211
======================= =======================
Diluted 41,417,538 42,751,912 41,702,996 42,845,240
======================= =======================
AMERUS GROUP CO.
CONSOLIDATED BALANCE SHEETS
($ in thousands)
June 30, December 31,
2006 2005
-----------------------------
Assets
Investments:
Securities available-for-sale at fair
value:
Fixed maturity securities $16,201,102 $16,727,933
Equity securities 80,119 75,658
Short-term investments 9,999 9,998
Securities held for trading purposes:
Fixed maturity securities 1,276,341 1,414,225
Equity securities 4,143 2,358
Short-term investments 3,962 -
Mortgage loans 988,008 976,135
Policy loans 500,410 483,441
Other investments 425,004 347,552
-----------------------------
Total investments 19,489,088 20,037,300
Cash and cash equivalents 491,229 600,160
Accrued investment income 236,155 237,221
Premiums, fees and other receivables 35,855 40,667
Income taxes receivable 25,477 9,005
Reinsurance receivables 745,907 730,532
Deferred policy acquisition costs 2,134,740 1,755,159
Deferred sales inducements 340,675 261,322
Value of business acquired 356,674 356,949
Goodwill 229,670 228,869
Property and equipment 46,398 44,467
Other assets 312,851 306,655
Separate account assets 209,605 221,694
-----------------------------
Total assets $24,654,324 $24,830,000
=============================
AMERUS GROUP CO.
CONSOLIDATED BALANCE SHEETS
($ in thousands)
June 30, December 31,
2006 2005
-----------------------------
Liabilities and Stockholders' Equity
Liabilities:
Policy reserves and policyowner
funds:
Future life and annuity policy
benefits $19,690,434 $19,486,854
Policyowner funds 1,584,548 1,483,873
-----------------------------
21,274,982 20,970,727
Accrued expenses and other
liabilities 438,726 500,858
Payable for collateral under
securities and other transactions 391,468 474,561
Dividends payable to policyowners 160,874 278,839
Policy and contract claims 50,329 66,137
Deferred income taxes 3,191 58,818
Notes payable 564,744 556,051
Separate account liabilities 209,605 221,694
-----------------------------
Total liabilities 23,093,919 23,127,685
Stockholders' equity:
Preferred Stock, no par value,
20,000,000 shares authorized,
6,000,000 shares issued and
outstanding in 2006 and 2005 144,774 144,830
Common Stock, no par value,
230,000,000 shares authorized;
46,944,310 shares issued and
38,137,344 shares outstanding in
2006 46,675,811 shares issued and
38,612,874 shares outstanding in
2005 46,944 46,676
Additional paid-in capital - common
stock 1,244,023 1,231,533
Accumulated other comprehensive loss (219,214) (3,612)
Unearned compensation - (3,783)
Retained earnings 728,197 604,747
Treasury stock, at cost (8,806,966
shares in 2006 and 8,062,937 shares
in 2005) (384,319) (318,076)
-----------------------------
Total stockholders' equity 1,560,405 1,702,315
-----------------------------
Total liabilities and
stockholders' equity $24,654,324 $24,830,000
=============================
AMERUS GROUP CO.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For the Six Months Ended June 30, 2006 and the Year Ended
December 31, 2005
($ in thousands)
Accumulated
Additional Other
Paid-In Comprehensive
Preferred Common Capital Income
Stock Stock Common Stock (Loss)
------------- ------------- ------------- -------------
Balance at
December 31,
2004 $- $44,226 $1,198,379 $114,670
2005:
Net income - - - -
Net
unrealized
loss on
securities - - - (118,034)
Net
unrealized
loss on
derivatives
designated
as cash flow
hedges - - - (248)
Issuance of
preferred
stock, net
of costs 144,830 - - -
Conversion of
OCEANs - 1,675 9,069 -
Stock issued
under
various
incentive
plans, net
of
forfeitures - 775 24,085 -
Purchase of
treasury
stock - - - -
Dividends
declared on
preferred
stock - - - -
Dividends
declared on
common stock - - - -
------------- ------------- ------------- -------------
Balance at
December 31,
2005 144,830 46,676 1,231,533 (3,612)
2006:
Net income - - - -
Net
unrealized
loss on
securities - - - (215,741)
Net
unrealized
loss on
derivatives
designated
as cash flow
hedges - - - (72)
Costs for
issuance of
preferred
stock (56) - - -
Stock issued
under
various
incentive
plans, net
of
forfeitures - 268 16,273 -
Purchase of
treasury
stock - - - -
Dividends
declared on
preferred
stock - - - -
Reclassifi-
cation of
unearned
compensation
under SFAS
123R - - (3,783) -
Minimum
pension
liability
adjustment - - - 211
------------- ------------- ------------- -------------
Balance at
June 30, 2006 $144,774 $46,944 $1,244,023 $(219,214)
============= ============= ============= =============
Total
Unearned Retained Treasury Stockholders'
Compensation Earnings Stock Equity
------------- ------------- ------------- -------------
Balance at
December 31,
2004 $(1,238) $431,911 $(164,479) $1,623,469
2005:
Net income - 191,179 - 191,179
Net
unrealized
loss on
securities - - - (118,034)
Net
unrealized
loss on
derivatives
designated
as cash flow
hedges - - - (248)
Issuance of
preferred
stock, net
of costs - - - 144,830
Conversion of
OCEANs - - - 10,744
Stock issued
under
various
incentive
plans, net
of
forfeitures (2,545) - 958 23,273
Purchase of
treasury
stock - - (154,555) (154,555)
Dividends
declared on
preferred
stock - (2,417) - (2,417)
Dividends
declared on
common stock - (15,926) - (15,926)
------------- ------------- ------------- -------------
Balance at
December 31,
2005 (3,783) 604,747 (318,076) 1,702,315
2006:
Net income - 128,888 - 128,888
Net
unrealized
loss on
securities - - - (215,741)
Net
unrealized
loss on
derivatives
designated
as cash flow
hedges - - - (72)
Costs for
issuance of
preferred
stock - - - (56)
Stock issued
under
various
incentive
plans, net
of
forfeitures - - (9,926) 6,615
Purchase of
treasury
stock - - (56,317) (56,317)
Dividends
declared on
preferred
stock - (5,438) - (5,438)
Reclassifi-
cation of
unearned
compensation
under SFAS
123R 3,783 - - -
Minimum
pension
liability
adjustment - - - 211
------------- ------------- ------------- -------------
Balance at
June 30, 2006 $- $728,197 $(384,319) $1,560,405
============= ============= ============= =============
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