American Bankers Insurance Group Inc. continues growth trend and earnings performance in first quarter 1996.MIAMI--(BUSINESS WIRE)--April 24, 1996--American Bankers Insurance Group 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 :ABIG ABIG American Bankers Insurance Group ABIG Access Bus Industry Group ) Wednesday announced 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. on a fully 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. basis for the first quarter 1996 of $20.0 million or $.96 per share. This compares with net operating income of $15.7 million or $.76 per share in 1995. These results reflect an increase in operating income of 27% or $4.3 million. First quarter 1996 operating results continues the growth trend in gross collected premiums and earnings demonstrated throughout 1995. Gross collected premiums for the first quarter of 1996 were $604.6 million compared with $469.1 million for the same period of 1995. This represents an increase of approximately 29% continuing the strong top line growth experienced in 1995 of 30%. Favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. 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. results and strong investment income are driving 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 . Net investment income for the first quarter 1996 was $27.4 million, representing an increase of 26% over 1995. Despite the lower interest rate environment, investment income continues to increase due to the overall growth in invested assets supported by impressive top line growth. Net income for the first quarter of 1996 was $20.6 million or $.99 per share compared with $14.9 million or $.72 per share for the same period of 1995. This represents an increase of 38% or $5.7 million. First quarter net income includes realized investments gains, net of tax, of $.7 million or $.03 per share compared with a realized investment loss, net of tax, of $.09 million or $.04 per share for the same period of 1995. 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. was $524.7 million and book value per share was $25.74 at March 31, 1996. American Bankers American Banker is a daily newspaper covering the financial services industry. Founded in 1835 and based in New York, American Banker's 70 reporters and editors in six cities monitor developments and breaking news affecting banks. Insurance Group (ABIG) provides affordable, specialty insurance products and services to a segment of the population which is underserved by the insurance industry. ABIG concentrates on marketing through financial institutions, retailers and other entities offering consumer financing as a regular part of their business. ABIG focuses on the continuing development of new and proven profitable products and on new distribution channels that will sustain long-term profitability and steady growth. ABIG, through its insurance subsidiaries, operates 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. , Canada, the Caribbean, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and the United Kingdom. The comparative consolidated results of the company for the quarters ended March 31, 1996 and 1995 are as follows: (in thousands except per common share data) -0- AMERICAN BANKERS INSURANCE GROUP INC.
Quarter Ended
March 31,
1996 1995
Income before realized investment gains (losses) and income taxes $29,858 $22,965 Realized investment gains (losses) 1,029 (1,333) Income before income taxes 30,887 21,632 Income tax expense 10,251 6,761 Net Income $20,636 $14,871 The following is a breakdown of operating income and realized investment gains (losses), net of taxes: (in thousands except per common share data)
Quarter Ended
March 31,
1996 1995
Net operating income (a) $19,967 $15,737
Net realized investment gains (losses) 669 (866)
Net income (b) $20,636 $14,871 Primary per share data: Net operating income $ .96 $ .76 Net realized investment gains (losses) .03 (.04) Net income $ .99 $ .72 Weighted average shares outstanding 20,929 20,728 Fully diluted per share data: Net operating income $ .96 $ .76 Net realized investment gains (losses) .03 (.04) Net income $ .99 $ .72 Weighted average shares outstanding 20,976 20,745
(a) Net operating income on a fully diluted basis was $20,029 and
$15,801, respectively.
(b) Net income on a fully diluted basis was $20,698 and $14,935,
respectively.
CONTACT: American Bankers Insurance Group Inc., Miami P. Bruce Camacho First Senior Vice President Investor Relations Investor relations The process by which the corporation communicates with its investors. 305/252-7060 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion