AmerUs Life Holdings has Record Third Quarter Operating Earnings of $.56 Per 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. 6, 1997--AmerUs Life Holdings, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AMRS AMRS Alliance for Marine Remote Sensing AMRS Automated Merchant Shipping Reporting System AMRS Automated Merchant Reporting System AMRS All-hazard Meteorological Response System ) today announced record third-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 $12.9 million or $.56 per share, an 11.8 percent increase over operating earnings of $11.6 million, or $.50 per share 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, for the third quarter of 1996. Operating earnings for the first nine months were $36.8 million, an increase of 15.8 percent from $31.8 million during the first nine months of 1996. Operating earnings per share for the nine-month period were $1.59 compared with $1.37 in 1996, on a pro forma basis. "We are extremely pleased to report that for the third straight quarter since becoming a public company we have produced record operating earnings," 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. "This last quarter was especially rewarding in that we also announced two major acquisitions -- Delta Life Corporation of Memphis, Tenn., which we closed last month, and AmVestors Financial Corporation (NYSE NYSE See: New York Stock Exchange : AMV AMV Anime Music Video AMV Avian Myeloblastosis Virus AMV Alfalfa Mosaic Virus AMV Army Motor Vehicle AMV Assisted Mechanical Ventilation AMV Armored Maintenance Vehicle AMV Accredited Meter Verifier AMV Annulus Master Valve ), which we hope to close by the end of the year." Net income for the quarter which ended September September: see month. 30, 1997 was $16.5 million, or $.71 per share, compared with net income of $6.5 million or $.28 per share on a pro forma basis, for the comparable quarter of 1996. Net income for the year through September 30, 1997, was $45.5 million compared with $62.9 million for the same period in 1996. The increase in third quarter operating earnings was fueled by increased revenues from premiums and product charges and investment income. Also contributing to the higher income for the first nine months of 1997 was an increase in tax credits of $3.2 million. Revenues, excluding 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. but including the Closed Block, increased by 4.9% year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. and reached $465.6 million. "Earnings improvements for the first nine months reflect modest growth of 2.6% in premiums and product charges over last year together with continued solid expense control and improved investment yields resulting from greater deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. of funds into tax credit projects and other alternative investments," noted Brooks. "Also, we are making progress in improving organic growth with new avenues of distribution, development of new products and markets, and increased 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 new agents." In August, AmerUs Life began to market a "second to die" universal life product for the estate planning Estate Planning The overall planning of a person's wealth, including the preparation of a will and the planning of taxes after the individual's death. Notes: Contrary to popular belief, estate planning involves much more than preparing a will, and it is not only for the market which already has been well received with submitted annual planned premium of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1 million through October October: see month. . In addition, new premiums on term sales continue to increase due in part to the introduction of a 20-year term product in June June: see month. . 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, . Its wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. include: AmerUs Life Insurance Company, which has approximately 320,000 customers with 421,000 life insurance policies and annuity contracts Annuity Contract The written agreement between an insurance company and a customer outlining each party's obligations in an annuity coverage agreement. This document will include the specific details of the contract, such as the structure of the annuity (variable or fixed), any and markets its products through approximately 600 career agents and subagents and 1,450 personal producing general agents and subagents; and Delta Life Corporation, which through 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 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. Company located in 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. , provides deferred annuity Deferred Annuity A type of annuity contract that delays payments of income, installments or a lump sum until the investor elects to receive them. This type of annuity has two main phases, the savings phase in which you invest money into the account, and the income phase in which and equity index annuity products and has approximately 52,000 annuity contracts in force. As of September 30, 1997, AmerUs Life Holdings' total assets were $4.5 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 $576.8 million for a per share book value of $24.91. Following the acquisition of Delta, the company has assets of approximately $6.5 billion. Stock Purchase by AmerUs Group AmerUs Group Co., which owns 72% of the outstanding common shares of AmerUs Life Holdings, Inc., informed the company today that it intends to purchase shares of AmVestors from time to time during permissible per·mis·si·ble adj. Permitted; allowable: permissible tax deductions; permissible behavior in school. per·mis periods prior to the merger of AmVestors and AmerUs and shares of AmerUs from time to time during permissible periods, before and after the merger. Purchases could be up to $35 million in the aggregate. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. AmerUs Group officials, the purchases will help AmerUs Group partially offset the dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. of its ownership resulting from the issuance of AmerUs shares in the merger. -0-
OPERATING EARNINGS
Nine Months Ended Three Months Ended
September 30 September 30
($ in thousands) 1997 1996 1997 1996
Net income $45,497 $62,944 $16,475 $6,483
Net realized (gains)
losses [A] (8,712) (40,006) (3,524) 1,528
Equity add-on tax [B] 0 4,480 0 0
Reorganization costs [C] 0 726 0 288
Formation of joint venture [D] 0 361 0 35
Litigation reserve [E] 0 3,250 0 3,250
Operating earnings $36,785 $31,755 $12,951 $11,584
Operating earnings per
common share $1.59 $1.37 $.56 $.50
[A] Represents realized gains or losses on investments less that
portion of the amortization of deferred policy acquisition costs
adjusted for income taxes on such amounts.
[B] Represents the mutual life insurance company equity add-on tax,
which is applicable only to mutual life insurance companies and
which the Company believes will not be applicable to the Company
after June 30, 1996, due to the conversion into a stock company.
[C] Represents costs directly related to the reorganization into a
mutual insurance holding company consisting primarily of
printing, postage, legal and consulting costs.
[D] Costs associated with forming the joint venture with Ameritas
Life Insurance Corp.
[E] After-tax reserve for class action lawsuit.
AMERUS LIFE HOLDINGS, INC.
Balance Sheet
($ in Thousands)
9/30/97
Adjusted to Including
Include Closed Block
10Q Closed Block 12/31/96 12/31/96
Assets:
Investments:
Securities available-for-sale
at fair value
Fixed maturities $2,338,050 $3,335,380 $2,414,807 $3,316,068
Equity securities 52,964 52,964 64,033 64,033
Short - term
investments 24,425 31,804 13,288 16,414
Investment in
AMAL Corp. 23,746 23,746 20,809 20,809
Mortgage loans on
real estate 303,263 303,263 225,743 225,743
Real estate 4,331 4,331 4,561 4,561
Policy loans 66,295 239,379 65,183 232,010
Other investments 87,917 90,297 93,228 93,228
Total investments 2,900,991 4,081,164 2,901,652 3,972,866
Cash 0 0 0 1,817
Accrued investment
income 39,998 49,219 30,792 41,590
Premiums and fees
receivable 2,794 4,935 1,489 6,487
Reinsurance
receivables 1,476 1,476 1,329 1,329
Deferred policy
acquisition costs 128,515 283,393 120,481 295,716
Property and equipment 3,434 3,434 4,393 4,393
Closed Block assets 1,350,343 0 1,270,168 0
Other assets 56,148 60,078 52,111 60,031
Total assets $4,483,699 $4,483,699 $4,384,229 $4,384,229
AMERUS LIFE HOLDINGS, INC.
Balance Sheet
($ in Thousands)
9/30/97
Adjusted to Including
Include Closed Block
10Q Closed 12/31/96 12/31/96
Block
Liabilities and Shareholders' Equity:
Liabilities:
Policy reserves and policyowner funds:
Future life and annuity policy
benefits $1,986,065 $3,413,949 $2,053,740 $3,416,813
Policyowner funds 65,510 72,561 55,369 62,971
2,051,575 3,486,510 2,109,109 3,479,784
Checks drawn in excess
of bank balances 1,040 705 0 0
Accrued expenses 15,358 19,454 14,227 17,196
Dividends payable to
policyowners 1,723 136,132 0 132,661
Policy and contract
claims 5,391 11,321 7,039 11,804
Income taxes 34,544 34,544 25,182 25,182
Deferred income taxes 10,303 10,303 1,337 1,337
Other liabilities 52,336 60,389 64,173 70,374
Long-term debt 61,527 61,527 188,381 188,381
Closed Block
liabilities 1,587,088 0 1,517,271 0
Total liabilities 3,820,885 3,820,885 3,926,719 3,926,719
Company obligated manditorily
redeemable preferred
Capital Securities 86,000 86,000 0 0
Shareholders' equity:
Common Stock, Class A, no par value
75,000,000 shares authorized; 18,155,989
shares issued and outstanding
69,527 69,527 14,500 14,500
Common Stock, Class B, no par value
50,000,000 shares authorized; 5,000,000
shares issued and outstanding
5,000 5,000 5,000 5,000
Unrealized appreciation
(depreciation) 58,712 58,712 35,300 35,300
Retained earnings 443,575 443,575 402,710 402,710
Total shareholders'
equity 576,814 576,814 457,510 457,510
Total liabilities and
shareholders' equity $4,483,699 $4,483,699 $4,384,229 , $4,384,229
AMERUS LIFE HOLDINGS, INC.
Statement of Income
($ in Thousands)
YTD 9/30/97
Adjusted to Open
Include YTD Block Only
10Q Closed Block 9/30/96 09/30/96
Revenues
Insurance
premiums $33,522 $187,132 $182,451 $133,704
Product charges 30,741 45,094 43,793 39,135
Net investment
income 149,774 231,158 215,325 188,499
Realized gains
(losses) on
investment 14,510 14,318 62,625 62,555
Contribution from
Closed Block 21,652 0 0 2,280
Other revenue 2,207 2,207 2,279 2,659
252,406 479,909 506,473 428,832
Benefits and expenses
Policyowner
benefits 126,125 284,832 273,957 222,929
Underwriting,
acquisition and
insurance
expenses 37,694 41,790 47,930 46,892
Amortization of
deferred policy
acquisition
costs 16,767 37,124 43,109 31,865
Interest expense 8,968 8,968 0 0
Dividends to
policyowners 835 45,178 40,674 26,343
190,389 417,892 405,670 328,029
Income before income
taxes and equity in
earnings of
AMAL Corp 62,017 62,017 100,803 100,803
Income tax expense 17,694 17,694 38,653 38,653
Income before equity
in earnings of
AMAL Corp. 44,323 44,323 62,150 62,150
Equity in earnings
of AMAL Corp. 1,174 1,174 794 794
Net income $45,497 $45,497 $62,944 $62,944
AMERUS LIFE HOLDINGS, INC.
Statement of Income
($ in Thousands)
QTR 9/30/97
Adjusted to Open
Include QTR Block Only
10Q Closed Block
9/30/96 09/30/96
Revenues
Insurance premiums $12,594 $61,210 $59,388 $10,641
Product charges 10,454 14,800 14,521 9,864
Net investment income 50,548 77,654 71,736 44,910
Realized gains (losses) on
investments 4,987 5,784 (1,784) (1,854)
Contribution from Closed
Block 8,242 0 0 2,659
Other revenue 1,577 1,577 950 950
88,402 161,025 144,811 67,170
Benefits and expenses
Policyowner benefits 42,250 92,575 85,894 34,866
Underwriting, acquisition and
insurance expenses 14,820 16,095 18,815 17,777
Amortization of deferred
policy acquisition costs 5,794 12,040 13,952 2,708
Interest expense 2,813 2,813 0 0
Dividends to policyowners 662 15,439 14,350 19
66,339 138,962 133,011 55,370
Income before income taxes and
equity in earnings of
AMAL Corp. 22,063 22,063 11,800 11,800
Income tax expense 6,108 6,108 5,812 5,812
Income before equity in earnings
of AMAL Corp. 15,955 15,955 5,988 5,988
Equity in earnings of AMAL Corp. 520 520 495 495
Net income $16,475 $16,475 $6,483 $6,483
AMERUS LIFE HOLDINGS, INC.
Statement of Shareholders' Equity
($ in Thousands) Unrealized
Appreciation
Common (Depreciation) Retained Total
Stock of Available for Earnings Shareholders'
Cl. A Cl. B Sale Securities Equity
Balance at December 31, 1995
- - $108,714 $431,195 $539,909
Net income - - - 62,944 62,944
Net unrealized
depreciation - - (85,996) - (85,996)
Dividend to American
Mutual Holding Co.
- - - (4,463) (4,463)
Issuance of common stock
14,500 5,000 - (19,500) 0
Balance at September 30, 1996
14,500 5,000 22,718 470,176 512,394
Net income - - - 11,229 11,229
Net unrealized depreciation
- - 12,582 - 12,582
Dividend to American Mutual
Holding Co. - - - 305 305
Capital contributions to affiliates
- - - (79,000) (79,000)
Balance at December 31, 1996
14,500 5,000 35,300 402,710 457,510
Net income - - - 45,497 45,497
Shareholder dividend (4,632) (4,632)
Net unrealized depreciation
- - 23,412 - 23,412
Issuance of common stock
55,027 - - - 55,027
$69,527 $5,000 $58,712 $443,575 $576,814
Results of Operations
A summary of the Company's combined revenues, including revenues
associated with the Closed Block, follows:
Nine Months Ended Three Months Ended
September 30 September 30
($ in thousands) 1997 1996 1997 1996
Insurance premiums:
Traditional life insurance
premiums $173,828 $169,435 $56,369 $56,088
Immediate annuity and
supplementary contract
premiums 13,196 11,366 4,801 3,269
Other premiums 108 1,650 40 31
Total insurance premiums 187,132 182,451 61,210 59,388
Universal life product
charges 44,363 43,139 14,477 14,298
Annuity product charges 731 654 323 223
Total product charges 45,094 43,793 14,800 14,521
Net investment income 231,158 215,325 77,654 71,736
Other revenues 2,207 2,279 1,577 950
Subtotal 465,591 443,848 155,241 146,595
Realized gains (losses) on
investments 14,318 62,625 5,784 (1,784)
Total revenues $479,909 $506,473 $161,025 $144,811
The following table sets forth information regarding the Company's
sales activity by product:
Sales Activity by Product
Nine Months Ended Three Months Ended
September 30 September 30
($ in thousands) 1997 1996 1997 1996
Individual life insurance:
Participating whole life $12,409 $13,658 $3,806 $4,710
Universal life 5,789 5,650 2,123 2,156
Term life 3,302 1,958 1,546 589
Total life insurance [A] $21,500 $21,266 $7,475 $7,455
Individual annuities [B] $31,549 $63,098 $10,244 $13,561
[A] Direct first year annualized premiums
[B] Direct first year and single collected premiums. Effective May
1996, substantially all new sales of individual deferred
annuities are made through the Ameritas Joint Venture.
A summary of the Company's combined policyowner benefits, including
policyowner benefits associated with the Closed Block, follows:
Nine Months Ended Three Months Ended
September 30 September 30
($ in thousands) 1997 1996 1997 1996
Traditional life insurance
Death benefits $ 30,494 $25,656 $ 9,521 $ 5,992
Change in liability for future
policy benefits and other
policy benefits 125,869 117,849 41,902 38,085
Total traditional life
insurance benefits 156,363 143,505 51,423 44,077
Universal life insurance
Death benefits in excess of
cash value 19,572 17,173 4,686 5,468
Interest credited on policyowner
account balances 33,674 32,498 11,062 11,467
Other policy benefits 2,417 2,993 795 1,235
Total universal life
insurance benefits 55,363 52,664 16,543 18,170
Annuities
Interest credited to deferred
annuity account balances 45,281 52,142 14,756 16,430
Other annuity benefits 27,078 23,988 9,842 7,754
Total annuity benefits 72,359 76,130 24,598 24,184
Miscellaneous benefits 447 1,658 11 (537)
Total Policyowner Benefits $284,832 $273,957 $92,575 $85,894
A summary of the Company's combined expenses, including expenses
associated with the Closed Block, follows:
Nine Months Ended Three Months Ended
September 30 September 30
($ in thousands) 1997 1996 1997 1996
Commission expense, net of
deferrals $ 6,415 $ 6,843 $ 2,334 $ 2,340
Other underwriting, acquisition
and insurance expenses,
net of deferrals 35,375 41,087 13,761 16,475
Interest expense 8,968 0 2,813 0
Amortization of deferred policy
acquisition costs 37,124 43,109 12,040 13,952
Total Expenses $87,882 $91,039 $30,948 $32,767
CONTACT: Susan SUSAN Smallest Univalue Segment Assimilating Nucleus SUSAN Sub Saharan African Network SUSAN Smart Ultrasonic System for Aircraft NDE M. Boe, Vice President, Investor Relations Investor relations The process by which the corporation communicates with its investors. , 515/362-3692 |
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