AmerUs Life Holdings, Inc. Announces Third Quarter Operating Earnings of $0.61 Per Diluted Share.DES MOINES Des Moines, city, United States Des Moines (dĭ moin`), city (1990 pop. 193,187), state capital and seat of Polk co., S central Iowa, at the junction of the Des Moines and Raccoon rivers; inc. , Iowa--(BUSINESS WIRE)--Nov. 4, 1999-- AmerUs Life Holdings, Inc. (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 ) today announced adjusted 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 of $0.61 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 for the third quarter 1999, compared with $0.36 per diluted share in the comparable period of 1998. "This quarter's results mark our fourth consecutive quarter of operating earnings growth," said Roger K. Brooks Brooks , Gwendolyn Elizabeth 1917-2000. American poet known for her verse detailing the dreams and struggles of African Americans. An early volume of poems, Annie Allen (1949), was awarded a Pulitzer Prize. Noun 1. , chairman, president and chief executive officer of AmerUs Life Holdings, Inc. "Though we made improvements in several areas, three factors continued to drive our progress: strong 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. sales, which outpaced industry trends, higher net investment income, and improved spreads." Adjusted Operating Earnings Adjusted operating earnings for the quarter increased to $18.7 million, or $0.61 per diluted share compared to $12.1 million, or $0.36 per diluted share in the comparable period of 1998. For the nine months ended September September: see month. 30, 1999, adjusted operating earnings increased to $54.5 million, or $1.79 per diluted share compared to $52.1 million, or $1.50 per diluted share in the comparable period of 1998. Net income for the quarter increased to $16.7 million, or $0.55 per diluted share compared to $6.9 million, or $.20 per diluted share for the same period in 1998. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. , net income increased to $50.2 million, or $1.65 per diluted share compared to $49.5 million, or $1.43 per diluted share. Net Investment Income Net investment income for the quarter rose to $139.1 million from $116.0 million a year ago, primarily due to improved investment results as well as an increase in average invested assets. Year-to-date, net investment income increased to $399.8 million, compared to $376.0 million during the comparable period of 1998 and the effective yield on the investment portfolio increased to 7.17 percent from 6.97 percent during the same period in 1998. Product Sales Improved Annuity sales for the quarter increased 42 percent to $248.8 million compared to $175.2 million for the same period in 1998. Year-to-date annuity sales increased 19 percent to $673.1 million compared to $564.9 million for the same period in 1998. For the nine-month period ended September 30, 1999, total repetitive life sales increased more than 8 percent to $27.0 million from $24.9 million for the comparable period of 1998. Repetitive life production for the quarter decreased 12 percent, but the company believes this was a temporary decline. "While I can't predict future sales, early indications are that we will see a rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in the fourth quarter," said Brooks. Corporate Actions During the third quarter, the company repurchased 240,100 of its Class A common shares in the open market at an average cost of $23.87 per share. The Company also repurchased 61,400 units of its Adjustable Conversion-Rate Equity Securities (ACES) at an average cost of $24.80 per unit. On August 20, 1999, 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 Mutual Holding Company, a mutual insurance holding company and controlling shareholder of AmerUs Life Holdings, announced that its board of directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the development of a demutualization Demutualization The process of changing corporate structure from a mutual fund company to some other form, such as a limited liability or corporation. Notes: This means mutual/life insurance companies convert from policyholder companies to stock companies. plan. The company expects to file the plan with the Iowa Insurance Commissioner during the fourth quarter of 1999. AmerUs Life Holdings, Inc. is an Iowa corporation located in Des Moines, Iowa “Des Moines” redirects here. For other uses, see Des Moines (disambiguation). Des Moines (pronounced /dɪˈmɔɪn/ in English, , engaged through its subsidiaries in the business of marketing, 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. and distributing individual life insurance and annuity products in 49 states, the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). and the U.S. Virgin Islands. Its wholly-owned subsidiaries include AmerUs Life Insurance Company, Delta Life Corporation, and its operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , Delta Life and Annuity Company, and AmVestors Financial Corporation, located in Topeka, Kansas This article is about the state capital of Kansas. For other uses, see Topeka (disambiguation). Topeka is the capital of the U.S. state of Kansas and the county seat of Shawnee County, which is named after the Shawnee Indians. , with two wholly-owned operating subsidiaries -- American Investors Life Insurance Company, Inc. and Financial Benefit Life Insurance Company. As of September 30, 1999, AmerUs Life Holdings' total assets were $10.9 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 $802.2 million, 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 . (Quarterly Financial Results Attached) Certain statements made by the company which are not historical facts may be considered 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. , including, without limitation, statements as to trends, management's beliefs, expectations and opinions, which are based upon a number of assumptions concerning future conditions that ultimately may prove to be inaccurate. Such forward-looking statements are subject to risks and uncertainties and may be affected by various factors that may cause actual results to differ materially from those in the forward-looking statements. For further information which could cause actual results to differ from the company's expectations as well as other factors which could affect the company's financial statements, please refer to the company's 10K report filed with the Securities and Exchange Commission. -0-
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
1999 1998 1999 1998
-------------------- ----------------------
(In thousands, except per share amounts)
Net Income $ 16,688 $ 6,862 $ 50,236 $ 49,482
Net realized (gains)
losses on
investments (A) (94) 5,454 (2,707) (1,554)
Core realized
gains (losses) (B) 2,069 1,549 5,856 5,134
Amortization of
deferred policy
acquisition costs
due to realized
gains or losses (C) 36 (1,754) 1,129 (913)
-------------------- ----------------------
Adjusted Operating
Income $ 18,699 $ 12,111 $ 54,514 $ 52,149
==================== ======================
Adjusted Operating
Income per common
share:
Basic (D) $ 0.62 $ 0.36 $ 1.79 $ 1.52
Diluted (E) $ 0.61 $ 0.36 $ 1.79 $ 1.50
(A) Represents realized gains or losses on investments adjusted for
income taxes on such amounts. Realized gains may vary widely
between periods. Such amounts are determined by management's
timing of individual transactions and do not necessarily
correspond to the underlying operating trends.
(B) Represents gains on convertible preferred stock and bond
portfolio, net of income taxes.
(C) Represents amortization of deferred policy acquisition costs due
to realized gains or losses being included in product margins
adjusted for income taxes on such amounts.
(D) Basic operating earnings per common share for the third quarter
of 1999 and 1998 is calculated using 30.37 million and 33.73
million shares, respectively.
(E) Diluted adjusted operating income per common share for the third
quarter of 1999 and 1998 is calculated using 30.53 million and
33.95 million shares, respectively.
AMERUS LIFE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
--------------------- -------------------
Revenues:
Insurance premiums $ 22,821 $ 22,642 $ 67,041 $ 61,368
Universal life and
annuity product charges 19,399 20,035 55,485 54,287
Net investment income 139,103 115,997 399,799 375,991
Realized gains (losses)
on investments 145 (8,393) 4,164 2,390
Contribution from the
Closed Block 6,207 7,200 19,121 24,036
--------------------- -------------------
187,675 157,481 545,610 518,072
--------------------- -------------------
Benefits and expenses:
Policyowner benefits 116,831 115,304 327,527 334,590
Underwriting, acquisition,
and insurance expenses 22,303 17,731 66,943 56,180
Amortization of deferred
policy acquisition costs
and value of business
acquired 15,597 8,160 52,168 38,848
Dividends to policyowners 1,396 909 3,419 1,619
--------------------- -------------------
156,127 142,104 450,057 431,237
--------------------- -------------------
Income from operations 31,548 15,377 95,553 86,835
Interest expense 6,763 7,007 21,533 19,617
--------------------- -------------------
Income before income
tax expense and
equity in earnings
of unconsolidated
subsidiary 24,785 8,370 74,020 67,218
Income tax expense 8,301 1,952 24,996 19,271
--------------------- -------------------
Income before equity
in earnings of
unconsolidated subsidiary 16,484 6,418 49,024 47,947
Equity in earnings of
unconsolidated subsidiary 204 444 1,212 1,535
--------------------- -------------------
Net income $ 16,688 $ 6,862 $ 50,236 $ 49,482
===================== ===================
Earnings per common share:
Basic $ 0.55 $ 0.20 $ 1.65 $ 1.44
===================== ===================
Diluted $ 0.55 $ 0.20 $ 1.65 $ 1.43
===================== ===================
Weighted average
common shares
outstanding
Basic 30,372,452 33,726,221 30,412,029 34,393,079
====================== =====================
Diluted 30,534,084 33,951,365 30,485,777 34,695,353
====================== =====================
AMERUS LIFE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30, December 31,
1999 1998
----------------------------------
(unaudited)
Assets
Investments:
Securities available for
sale at fair value:
Fixed maturity securities $ 7,016,504 $ 6,710,246
Equity securities 15,179 68,483
Short-term investments 13,255 22,428
Mortgage loans on real estate 584,130 566,403
Real estate 1,542 633
Policy loans 109,482 110,786
Other investments 209,541 205,790
----------------------------------
Total investments 7,949,633 7,684,769
Cash and cash equivalents 17,427 60,090
Accrued investment income 95,658 79,921
Premiums and fees receivable 5,524 4,385
Reinsurance receivables 8,174 6,174
Deferred policy acquisition costs 496,486 246,030
Value of business acquired 264,993 224,540
Investment in unconsolidated
subsidiaries 30,181 29,602
Goodwill 209,866 215,506
Property and equipment 23,808 23,249
Deferred income taxes 21,877 -
Other assets 383,329 401,239
Closed Block assets 1,417,134 1,453,305
----------------------------------
Total assets $ 10,924,090 $10,428,810
==================================
AMERUS LIFE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30, December 31,
1999 1998
(unaudited)
----------------------------------
Liabilities and Stockholders'
Equity
Policy reserves and policyowner funds:
Future life and annuity policy
benefits $ 7,286,422 $ 7,185,417
Policyowner funds 553,767 95,974
----------------------------------
7,840,189 7,281,391
Accrued expenses 32,280 41,323
Dividends payable to policyowners 2,200 1,168
Policy and contract claims 8,137 13,433
Income taxes payable 11,057 9,574
Deferred income taxes - 11,398
Other liabilities 121,793 159,350
Debt 152,198 141,051
Closed Block liabilities 1,739,198 1,703,195
----------------------------------
Total liabilities 9,907,052 9,361,883
----------------------------------
Company-obligated mandatorily
redeemable preferred capital
securities of subsidiary
trusts holding solely junior
subordinated debentures of
the Company 214,791 216,729
----------------------------------
Stockholders' equity:
Preferred Stock, no par value,
20,000,000 shares authorized,
none issued - -
Common Stock, Class A, no par
value, 180,000,000 shares
authorized: issued and
outstanding; 25,185,776 shares
(net of 4,547,383 treasury
shares) in 1999 and 25,425,983
(net of 4,308,936 treasury
shares) in 1998 25,186 25,426
Common Stock, Class B, no par
value, 50,000,000 shares
authorized; 5,000,000 shares
issued and outstanding 5,000 5,000
Paid-in capital 284,942 290,091
Accumulated other
comprehensive income (56,819) 26,711
Unearned compensation (376) (240)
Retained earnings 544,314 503,210
----------------------------------
Total stockholders' equity 802,247 850,198
----------------------------------
Total liabilities and
stockholders' equity $ 10,924,090 $10,428,810
==================================
AMERUS LIFE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
September 30, 1999
(Dollars in thousands)
Accumulated
Additional Other
Common Stock Paid-In Comprehensive
Class A Class B Capital Income
--------- --------- ----------- -------------
Balance at
December 31, 1996 $ 14,500 $ 5,000 $ - $ 35,300
1997:
Net income
Net unrealized gain
on securities 20,447
Issuance of common
stock 15,235 383,686
Dividends declared
on common stock
--------- --------- ----------- -------------
Balance at
December 31, 1997 $ 29,735 $ 5,000 $ 383,686 $ 55,747
1998:
Net income
Net unrealized (loss)
on securities (28,076)
Minimum pension
liability adjustment (960)
Stock issued under
various incentive
plans, net of
forfeitures 14 635
Purchase of
treasury stock (4,325) (97,810)
Issuance of
treasury stock 2 661
Retirement of
company-obligated
mandatorily
redeemable preferred
capital securities 2,919
Dividends declared
on common stock
---------- -------- ------------ ------------
Balance at
December 31, 1998 $ 25,426 $ 5,000 $ 290,091 $ 26,711
1999 (unaudited)
Net income
Net unrealized (loss)
on securities (83,530)
Stock issued under
various incentive
plans, net of
forfeitures 17 379
Purchase of
treasury stock (257) (5,883)
Retirement of
company-obligated
mandatorily
redeemable preferred
capital securities 355
Dividends declared on
common stock
---------- -------- ------------ ------------
Balance at
September 30, 1999 $ 25,186 $ 5,000 $ 284,942 $ (56,819)
========== ======== ============ ============
Total
Unearned Retained Shareholders
Compensation Earnings Equity
-------------- ---------- ------------
Balance at
December 31, 1996 $ - $ 402,710 $ 457,510
1997:
Net income 58,059 58,059
Net unrealized gain
on securities 20,447
Issuance of common stock 398,921
Dividends declared on
common stock (6,946) (6,946)
-------------- ---------- -----------
Balance at
December 31, 1997 $ - $ 453,823 $ 927,991
-
1998:
-
Net income 62,829 62,829
Net unrealized (loss)
on securities (28,076)
Minimum pension
liability adjustment (960)
Stock issued under
various incentive
plans, net of forfeitures (240) 409
Purchase of treasury stock (102,135)
Issuance of treasury stock 663
Retirement of
company-obligated
mandatorily
redeemable preferred
capital securities 2,919
Dividends declared on
common stock (13,442) (13,442)
-------------- ---------- -----------
Balance at
December 31, 1998 $ (240) $ 503,210 $ 850,198
1999 (unaudited)
Net income 50,236 50,236
Net unrealized (loss)
on securities (83,530)
Stock issued under
various incentive
plans, net of forfeitures (136) 260
Purchase of treasury stock (6,140)
Retirement of
company-obligated
mandatorily
redeemable preferred
capital securities 355
Dividends declared on
common stock (9,132) (9,132)
-------------- ---------- -----------
Balance at
September 30, 1999 $ (376) $ 544,314 $ 802,247
============== ========== ===========
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