American Eagle Group, Inc. reports first quarter 1995 earnings: net income of 39% over 1994 first quarter results.DALLAS--(BUSINESS WIRE)--May 4, 1995--American Eagle Group, Inc. reported an increase of 39% in net income to $1.0 million in the first quarter of 1995 from $0.7 million in the first quarter of 1994. 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. , which excludes realized investment gains or losses, was approximately equal to net income as there were no significant realized investment gains or losses in either the first quarter of 1995 or 1994. Net income available for common stockholders increased 149% to $1.0 million in the first quarter of 1995 from $0.4 million in the first quarter of 1994. Earned premiums Earned premium is the portion of an insurance written premium which is considered "earned" by the insurer, based on the part of the policy period that the insurance has been in effect, and during which the insurer has been exposed to loss. , net of reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. , increased 23% to $20.6 million in the first quarter of 1995 from $16.7 million in the first quarter of 1994. The first quarter combined ratio was 99.6% in 1995, up 0.8 points over the 98.8% in 1994. Net income available for common stockholders was $0.14 per share for the first quarter of 1995 compared to $0.11 per share in the first quarter of 1994, even though the initial public offering in the second quarter of 1994 increased the weighted average shares outstanding in the first quarter of 1995 by 103% compared to the first quarter of 1994. M. Philip Guthrie, Chairman and Chief Executive Officer stated, "We continue to be pleased with the progress and performance in all three of our divisions. Our overall results, as reflected in our first quarter combined ratio of 99.6%, compared to recent property and casualty industry average ratios of approximately 110%, continue to distinguish American Eagle and its employees. "Consistent with historical seasonal loss patterns, the first quarter results were impacted by higher levels of losses. Included in the first quarter of 1995 are flood losses in Central California Central California can refer to one of several divisions or regions of the U.S state of California:
"The net book value per share of our common stock increased during the first quarter to $9.38, a growth of $0.26 per share. A reduction in interest rates, which resulted in a $1.0 million increase, after federal income taxes, in the value of fixed income securities that are carried at fair value, together with the net income available for common stockholders, were the sources of the increase." The common stock of American Eagle Group, Inc. trades on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol FLI FLI - Flash Lights Impressively. . American Eagle Group, Inc. is an insurance holding company that, through its subsidiaries, markets and underwrites specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. property and casualty coverages in selected niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. . These markets include general aviation, local and intermediate haul trucking, franchised new auto dealers, selected artisan contractors, and yachts. The company's business is organized in three divisions, the Aviation Division headquartered in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. ; the Property & Casualty Division headquartered in Sacramento, California “Sacramento” redirects here. For other uses, see Sacramento (disambiguation). Sacramento is the capital of the State of California and the county seat of Sacramento County. ; and the Marine Division headquartered in Baltimore, Maryland "Baltimore" redirects here. For the surrounding county, see Baltimore County, Maryland. For other uses, see Baltimore (disambiguation). Baltimore is an independent city located in the state of Maryland in the United States. . -0- American Eagle Group, Inc. First Quarter 1995 Earnings (In thousands, except per share data)
Three Months ended
March 31
1995 1994
Earned premiums $20,649 $16,749
Operating income $ 983 $ 701
Net realized investment gains (losses),
after federal income tax (AFIT) $ 4 $ 9
Net income $ 987 $ 710
Preferred stock dividends $ 24 $ 324
Net income available for
common stockholders $ 963 $ 386
Per share data:
Operating income $ 0.14 $ 0.20 (a)
Net income $ 0.14 $ 0.20 (a)
Net income available for
common stockholders $ 0.14 $ 0.11 (a)
Weighted average shares 7,055 3,469 (a)
Underwriting ratios (GAAP)
Losses and LAE ratio (b) 65.9% 70.1%
Expense ratio (b) 33.7 28.7
Combined ratio 99.6% 98.8%
(a) Prior to the effects of the initial public offering.
(b) Year-to-year comparison reflects the impact of a change in ceded
reinsurance commission structure in 1995.
CONTACT: American Eagle Group Inc., Dallas M. Philip Guthrie, chairman/CEO, 214/448-1460 or Richard M. Kurz Sr., Vice President, CFO See Chief Financial Officer. , 214/448-1477 |
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