American Bankers Insurance Group Inc. reports strong earnings growth in the third quarter.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. for the third quarter of 1995 was $18.4 million, or $.88 per share. This compares with net operating income of $13.0 million, or $.62 per share, for the same period of 1994. This is an increase in operating results of $5.4 million or 41.5%. Third quarter 1995 operating results continue to demonstrate the company's healthy growth in gross revenues and investment income. 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 experienced in the company's core lines of business. Gross revenues in the three largest distribution channels increased 40% and profits increased over 45% during the quarter compared with the same period of 1994. These increases are driven by the intrinsic growth of many of the company's clients and the marketing of additional new and enhanced products within these distribution channels. Net investment income continues to boost operating results by $3.5 million, or $.17 per share, in the third quarter compared with the same period of 1994. Net investment income for the third quarter 1995 was $25.9 million, representing an increase of 26% over the same period in 1994. The company recently settled the final portion of its credit bond litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . This final settlement with the Federal Deposit Insurance Corp. (FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). ) now concludes all of the litigation associated with the company's discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: credit bond insurance business. Without admission of liability, the company concluded that it was advantageous and in its best interest to finally dispose of dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. the last portion of this litigation. This settlement, net of previously established reserves, resulted in an after tax charge of $3.8 million, or $.18 per share, which is included in the third quarter 1995 net operating results. Last year's third quarter results were also impacted by a credit bond litigation settlement of $2.9 million, or $.14 per share. Gross collected premiums for the third quarter of 1995 were $605.0 million compared with $460.9 million for the same period of 1994. This represents an increase of 31%. Net income for the third quarter of 1995 was $18.7 million, or $.90 per share, compared with $12.6 million, or $.61 per share, for the same period of 1994. Third quarter net income includes realized investment gains, net of tax, of $0.3 million, or $.02 per share, compared with a realized investment loss, net of tax, of $0.3 million, or $.01 per share, for the same period of 1994. Net operating income for the nine months ended Sept. 30, 1995 was $50.1 million, or $2.41 per share, compared with net operating income of $34.5 million, or $1.67 per share, for the same period of 1994. Net income for the nine months ended Sept. 30, 1995 was $49.6 million, or $2.39 per share, compared with net income of $36.0 million, or $1.74 per share, for the same period of 1994. During the fourth quarter 1995, the company expects to incur net losses of approximately $2.0 million related to 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. . 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. was $483.1 million and book value per share was $23.93 at Sept. 30, 1995. 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 consolidated results of the company for the quarters and nine months ended Sept. 30, 1995 and 1994 are as follows: -0-
AMERICAN BANKERS INSURANCE GROUP INC.
(in thousands except per common share data)
Quarter Ended Nine Months Ended
Sept. 30, Sept. 30,
1995 1994 1995 1994
Income before realized
investment gains
(losses) and income
taxes $ 24,592 $ 18,413 $ 69,842 $ 48,606
Realized investment
gain (losses) 495 (476) (707) 2,196
Income before income taxes 25,087 17,937 69,135 50,802 Income tax expense 6,403 5,298 19,532 14,834 Net income $ 18,684 $ 12,639 $ 49,603 $ 35,968 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 Nine Months Ended
Sept. 30, Sept. 30,
1995 1994 1995 1994
Net operating income $ 18,362(a) $ 12,948 $ 50,062(a) $ 34,541 Net realized investment gains (losses) 322 (309) (459) 1,427 Net income $ 18,684 $ 12,639 $ 49,603 $ 35,968 Primary per share data: Net operating income .88 .62 2.41 1.67 Net realized investment gains (losses) .02 (.01) (.02) .07 Net income $ .90 $ .61 $ 2.39 $ 1.74 Weighted average share outstanding 20,864 20,684 20,722 20,639 Fully diluted per share data: Net operating income $ .88 $ .62 $ 2.41 $ 1.67 Net realized investment gains (losses) .02 (.01) (.02) .07 Net income $ .90 $ .61 $ 2.39 $ 1.74 Weighted average share outstanding 20,887 20,684 20,821 20,639
(a) Net operating income on a fully diluted basis was $18,427 and
$50,257 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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