AmerUs Life Holdings Reports Record First Quarter 1998 Operating Earnings.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)--May 7, 1998--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 record first-quarter 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 $19.5 million, or $.56 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 from $11.6 million, or $.50 per diluted share, in the first quarter of 1997. This was the first reporting period that fully included the earnings of both AmVestors Financial Corporation and Delta Life Corporation, which were acquired in the last quarter of 1997. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. calculations reflect an approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. 50 percent increase in shares outstanding as a result of the AmVestors acquisition. Net income for the quarter, which includes all gains and losses from the sale of investments, was $21.8 million, or $.62 per share on a diluted basis, compared with $14.6 million, or $.63 per diluted share in the first quarter of 1997. "We feel very good about the first quarter and made solid progress. Operating earnings per share exceeded analysts' expectations, and we completed the integrations of our two acquisitions right on schedule," 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. "Delta has been relocated re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. from Memphis, Tennessee For the ancient Egyptian capital, see . Memphis is a city in the southwest corner of Tennessee, and the county seat of Shelby County. Memphis rises above the Mississippi River on the 4th Chickasaw Bluff just below the mouth of the Wolf River. to Des Moines and we have put programs in place at AmVestors to achieve our targeted expense savings. We anticipate expense savings beyond those already realized from the two acquisitions of an additional $8 million to $10 million through the balance of 1998." The increase in operating earnings was driven by the contributions of the two acquisitions as well as favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. mortality experience in the life insurance sector. Total revenues from premiums and product charges for the quarter, including the closed block, increased 5 percent to $88 million from $83.8 million on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis in the first quarter of 1997. However, new sales of both 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 were flat. "We expect sales volume to build during the year due to a number of initiatives underway to deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. and strengthen our distribution systems," noted Brooks. "We have added a number of key sales personnel, are entering into new distribution partnerships with banks and independent marketing organizations, and are implementing aggressive marketing programs with our existing sales force." 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 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 and Financial Benefit Life Insurance Company. As of March 31, 1998, AmerUs Life Holdings' total assets were $10.4 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 $944.6 million including FAS 115. -0- 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 which 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 reports filed with the Securities and Exchange Commission.
AMERUS LIFE HOLDINGS, INC.
Operating Earnings
For the Three Months Ended March 31,
---------------------
1998 1997
---- ----
(In thousands, except per share amounts)
Net income $ 21,757 $ 14,580
Net realized (gains) losses
on investments (A) (2,265) (2,981)
Operating earnings $ 19,492 $ 11,599
Operating earnings per common share:
Basic $ 0.56 $ 0.50
Diluted $ 0.56 $ 0.50
(A) Represents non-core realized gains or losses on investments
less that portion of the amortization of deferred policy
acquisition costs adjusted for income taxes on such
amounts. Gains or losses from convertible debt are included
in operating earnings.
AMERUS LIFE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
March 31, December 31,
1998 1997
------------ -----------
(Unaudited)
Assets:
Investments:
Securities available-for-sale
at fair value
Fixed maturity securities $ 6,847,819 $ 6,851,427
Equity securities 101,537 61,480
Short - term investments 29,637 12,595
Fixed maturity securities held for
trading purposes -- 22,955
Mortgage loans on real estate 485,243 462,473
Real estate 7,556 8,670
Policy loans 119,764 117,865
Other investments 184,146 158,073
----------- -----------
Total investments 7,775,702 7,695,538
Cash 21,927 58,081
Accrued investment income 86,874 84,713
Premiums and fees receivable 3,207 3,445
Reinsurance receivables 6,242 6,203
Deferred policy acquisition costs 141,710 118,896
Value of business acquired 258,625 266,014
Investment in unconsolidated
subsidiaries 27,316 26,849
Goodwill 218,455 220,250
Property and equipment 23,117 22,863
Other assets 357,436 359,308
Closed block assets 1,434,358 1,391,848
----------- -----------
Total assets $10,354,969 $10,254,008
=========== ===========
AMERUS LIFE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
March 31, December 31,
1998 1997
------------ -----------
(Unaudited)
Liabilities and Stockholders' Equity:
Liabilities:
Policy reserves and policyowner funds:
Future life and annuity policy benefits $ 7,083,600 $ 7,074,444
Policyowner funds 98,648 89,641
----------- -----------
Total 7,182,248 7,164,085
Accrued expenses 34,274 39,095
Dividends payable to policyowners 1,292 1,575
Policy and contract claims 5,570 4,548
Income taxes payable 18,424 12,753
Deferred income taxes 9,808 16,914
Other liabilities 134,019 111,180
Debt 266,341 266,435
Closed block liabilities 1,672,365 1,623,432
----------- -----------
Total Liabilities 9,324,341 9,240,017
Company-obligated manditorily-redeemable
preferred capital securities of subsidiary trust
holding solely junior subordinated
debentures of the Company 86,000 86,000
Stockholders' equity:
Preferred stock, no par value 20,000,000
shares authorized, none issued -- --
Common Stock, Class A, no par value
75,000,000 shares authorized; 29,734,919
shares issued and outstanding 29,735 29,735
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 383,686 383,686
Unrealized appreciation (depreciation)
of available for sale securities 54,099 55,747
Retained earnings 472,108 453,823
----------- -----------
Total stockholders' equity 944,628 927,991
----------- -----------
Total liabilities and stockholders' equity $10,354,969 $10,254,008
=========== ===========
AMERUS LIFE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except for per share data)
(Unaudited)
Three Months Ended March 31,
1998 1997
----------- -----------
Revenues
Insurance premiums $ 17,294 $ 8,170
Universal life and
annuity product charges 16,380 11,182
Net investment income 133,173 50,918
Realized gains on investments 6,219 5,259
Contribution from the Closed Block 8,975 9,276
----------- -----------
182,041 84,805
Benefits and expenses
Policyowner benefits 107,356 45,521
Underwriting, acquisition
and insurance
expenses 27,981 11,013
Amortization of deferred policy
acquisition costs 8,191 5,057
Dividends to policyowners 315 121
----------- -----------
143,843 61,712
Income from operations 38,198 23,093
Interest expense 6,682 2,947
----------- -----------
Income before income tax expense
and equity in earnings of
AMAL Corp. 31,516 20,146
Income tax expense 10,177 5,739
----------- -----------
Income before equity in earnings of
AMAL Corp. 21,339 14,407
Equity in earnings of
AMAL Corp. 418 173
----------- -----------
Net income $ 21,757 $ 14,580
=========== ===========
Earnings from net income per common share:
Basic $ 0.63 $ 0.63
=========== ===========
Diluted $ 0.62 $ 0.63
=========== ===========
Weighted average common shares outstanding:
Basic 34,734,918 23,155,989
=========== ===========
Diluted 34,831,363 23,155,989
=========== ===========
AMERUS LIFE
Consolidated Statements of Stockholders' Equity
Year Ended December 31, 1997 and Three Months Ended March 31, 1998
(In Thousands)
Additional
Common Stock Paid-In
Class A Class B Capital
Balance at
December 31,
1996 $14,500 $5,000 $0
1997:
Net income --- --- ---
Net
unrealized
appreciation --- --- ---
Issuance of
common stock 15,235 0 383,686
Dividends
declared on
common stock --- --- ---
Balance at
December 31,
1997 $29,735 $5,000 $383,686
March 31, 1998:
Net income --- --- ---
Net
unrealized
depreciation --- --- ---
Dividends
declared on
common stock --- --- ---
Balance at
March 31, 1998 $29,735 $5,000 $383,686
Unrealized
Appreciation
(Depreciation) Total
of available-for- Retained Stockholders
sale securities Earnings Equity
Balance at
December 31,
1996 $35,300 $402,710 $457,510
1997:
Net income --- 58,059 58,059
Net
unrealized
appreciation 20,447 --- 20,447
Issuance of
common stock --- --- 398,921
Dividends
declared on
common stock --- (6,946) (6,946)
Balance at
December 31,
1997 $55,747 453,823 $927,991
March 31, 1998:
Net income
Net --- 21,757 21,757
unrealized
depreciation (1,648) --- (1,648)
Dividends
declared on
common stock --- (3,474) (3,474)
0
Balance at
March 31, 1998 $54,099 $472,108 $944,628
CONTACT: AmerUs Life Holdings, Inc. Susan SUSAN Smallest Univalue Segment Assimilating Nucleus SUSAN Sub Saharan African Network SUSAN Smart Ultrasonic System for Aircraft NDE M. Boe, 515/362-3692 |
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