American Bankers Insurance Group Inc. reports fourth quarter 1995 earnings.MIAMI--(BUSINESS WIRE)--Feb. 7, 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 basis for the fourth quarter 1995 of $21.8 million or $1.05 per share. This compared with net operating income of $20.3 million or $.98 per share in 1994. Net operating income on a fully diluted basis for the year ended Dec. 31, 1995 was $72.1 million or $3.46 per share compared with net operating income of $54.8 million or $2.66 per share in 1994. This represents an increase of $17.3 million or 31.5%. Fourth quarter 1995 operating results continue to reflect strong increases in gross collected premiums and investment income. Net investment income for the fourth quarter 1995 was $27.0 million, representing an increase of 28% over 1994. The company's largest distribution channels showed increases in gross collected premiums and operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of over 40%. 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 were also experienced in the company's homeowners and personal lines businesses. The overall operating results during the quarter were negatively impacted by losses from Hurricane Opal Hurricane Opal was a major hurricane that formed in the Gulf of Mexico in September 1995. [1] Opal was the 9th hurricane of the abnormally active 1995 Atlantic hurricane season. of approximately $1.7 million, net of tax, or $.08 per share. The claims from Opal were lower than had previously been estimated and reported. The fourth quarter of 1994 was not impacted by any catastrophic events. Gross collected premiums for the fourth quarter of 1995 were $629.4 million compared to $469.3 million for the same period of 1994. This represents an increase of 34%. Gross collected premiums for 1995 were $2.3 billion representing an increase of 30%. Net income for the fourth quarter of 1995 was $22.7 million or $1.09 per share compared with $20.6 million or $1.00 per share for the same period of 1994. Fourth quarter net income includes realized investment gains, net of tax, of $0.9 million or $.04 per share compared with realized investment gains, net of tax, of $0.3 million or $.02 per share for the same period of 1994. Net income on a fully diluted basis for the year ended Dec. 31, 1995 was $72.5 million or $3.48 per share compared with net income of $56.5 million or $2.74 per share for 1994. 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 $513 million and book value per share was $25.34 at Dec. 31, 1995. Excluding the effects of FASB Statement FASB Statement A standard set by the Financial Accounting Standards Board regarding a financial accounting and reporting method. Essentially, FASB statements determine the acceptable accounting practices that Certified Public Accountants use in reporting 115 on stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. , book value per share would be $24.83 at Dec. 31, 1995. The company's 1995 results represent a 15.7% return on equity. 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 Inc. is one of the leading providers of credit-related insurance programs 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 and the Caribbean. The company also conducts business in 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. ABIG, as an international wholesaler and marketer of insurance products, services and programs, concentrates on marketing through prestigious financial institutions, retailers and other entities which provide consumer financing as a regular part of their business. The company markets an affordable product to a segment of the population that is underserved by the insurance industry. The comparative results of the company for the quarters and years ended Dec. 31, 1995 and 1994 are as follows: (in thousands) -0-
AMERICAN BANKERS INSURANCE GROUP INC.
Quarter Ended Year Ended
Dec. 31, Dec. 31,
1995 1994 1995 1994
Income before realized
investment gains and
income taxes $33,632 $28,531 $103,474 $ 77,137
Realized investment gains 1,428 483 721 2,679
Income before income taxes 35,060 29,014 104,195 79,816
Income tax expense 12,403 8,438 31,935 23,272
Net Income $22,657 $20,576 $ 72,260 $ 56,544
The following is a breakdown of operating income and realized investment gains net of taxes: (in thousands except per common share data)
Quarter Ended Year Ended
Dec. 31, Dec. 31,
1995 1994 1995 1994
Net operating income $21,729(a) $20,262 $71,791(a) $54,803
Net realized investment
gains 928 314 469 1,741
Net income $22,657(b) $20,576 $72,260(b) $56,544
Primary per share data:
Net operating income $1.05 $.98 $3.46 $2.66
Net realized investment
gains .04 .02 .02 .08
Net income $1.09 $1.00 $3.48 $2.74
Weighted average shares
outstanding 20,836 20,587 20,746 20,596
Fully diluted per
share data:
Net operating income $1.05 $.98 $3.46 $2.66
Net realized investment
gains .04 .02 .02 .08
Net income $1.09 $1.00 $3.48 $2.74
Weighted average shares
outstanding 20,898 20,641 20,823 20,613
(a) Net operating income on a fully diluted basis was $21,794 and
$72,051, respectively.
(b) Net income on a fully diluted basis was $22,722 and $72,520,
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 |
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