American Eagle Group, Inc. reports second quarter 1995 earnings: net income up 42% over 1994 quarterly results; year-to-date net income up 41%.DALLAS--(BUSINESS WIRE)--Aug. 1, 1995--American Eagle Group, Inc. reported an increase of 42% in net income, to $1.9 million in the second quarter of 1995 from $1.3 million in the second 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 the second quarter and first six months of 1995 and 1994. Net income available for common stockholders increased 63% to $1.8 million in the second quarter of 1995 from $1.1 million in the second 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 28% to $24.6 million in the second quarter of 1995 from $19.2 million in the second quarter of 1994. The second quarter combined ratio was 94.3% in 1995, down 1.8 points over the 96.1% in 1994, as a result of a 5.7 point decrease in the loss ratio, which was partially offset by a 3.9 point increase in the expense ratio. The increase in the expense ratio and a portion of the decrease in the loss ratio results from a reduction, of equal amounts, in the ceding cede tr.v. ced·ed, ced·ing, cedes 1. To surrender possession of, especially by treaty. See Synonyms at relinquish. 2. commissions and ceded premiums for reinsurance in the Aviation Division treaty renewed in 1994. As a result of the initial public offering in the second quarter of 1994, the weighted average shares outstanding in the second quarter of 1995 increased 38% compared to the comparable period in 1994. Net income available for common stockholders per share was $0.26 for the second quarter of 1995 compared to $0.22 per share in the second quarter of 1994. Net income increased 41% to $2.8 million in the first six months of 1995 from $2.0 million in 1994. Net income available for common stockholders increased 85% to $2.8 million in the first six months of 1995 from $1.5 million in the first six months of 1994. Earned premiums, net of reinsurance, for the six-month period ended June June: see month. 30, 1995, increased 26% tn0$45.2 million from $36.0 million in 1994. The first six months combined ratio was 96.7% in 1995, down 0.7 points from 97.4% in 1994 as a result of a 5.1 point decrease in the loss ratio which was partially offset by a 4.4 point increase in the expense ratio. The weighted average shares outstanding in the first six months of 1995 increased 64% compared to the comparable period in 1994. Net income available for common stockholders per share was $0.40 for the first six months of 1995, compared to $0.35 for the comparable period in 1994. M. Philip Philip, tetrarch of Ituraea Philip, d. A.D. 34, tetrarch of Ituraea, son of Herod the Great. He was perhaps the ablest of the Herod dynasty. He is mentioned in the Gospel of St. Luke. Guthrie Guth·rie , Woodrow Wilson Known as "Woody." 1912-1967. American folk singer and composer of numerous songs about hardship and social injustice, including "This Land Is Your Land" (1940). Noun 1. , Chairman and Chief Executive Officer stated, "We are generally pleased with the overall progress and performance in all three of our divisions. Our overall results, as reflected in our second quarter combined ratio of 94.3%, continue to distinguish American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Eagle and its employees. Also, the net book value per share of our common stock increased during the second quarter to $9.83, a growth of $0.45 per share for the quarter and a growth of $0.71 per share for the first six months of 1995. In the second quarter of 1995, our financial results improved in relation to both the prior year and the earlier quarter of 1995. We are, however, seeing an increase in the frequency of larger aviation liability losses. The financial impact of this increase is being only partially offset by increasing rates on selected classes of risks and coverage limits. In the Property & Casualty Division, the franchised new auto dealer program has become more price competitive, making it more difficult to generate acceptable profit margins in this segment of the business." 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 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.
1995 Financial Results
(In thousands, except per share data)
Three Months ended Six Months ended
June 30 June 30
1995 1994 1995 1994
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Earned premiums $24,595 $19,245 $45,244 $35,994 Operating income $ 1,856 $ 1,350 $ 2,839 $ 2,051 Net realized investment gains (losses), after federal income tax (AFIT) $ 0 $ (44) $ 4 $ (35) Net income $ 1,856 $ 1,306 $ 2,843 $ 2,016 Preferred stock dividends $ 25 $ 181 $ 49 $ 505 Net income available for common stockholders $ 1,831 $ 1,125 $ 2,794 $ 1,511
Per share data:
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Operating income $ 0.26 $ 0.26 /a $ 0.40 $ 0.48 /a
Net income $ 0.26 $ 0.26 /a $ 0.40 $ 0.47 /a
Net income available
for common stockholders $ 0.26 $ 0.22 /a $ 0.40 $ 0.35 /a
Weighted average shares 7,054 5,102 /a 7,054 4,290 /a
Underwriting ratios (GAAP)
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Losses and LAE ratio 63.6% 69.3% 64.6% 69.7%
Expense ratio 30.7 26.8 32.1 27.7
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Combined ratio 94.3% 96.1% 96.7% 97.4%
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Net book value per share
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At end of period $ 9.83 $ 8.60
/a Prior to the total effects of the initial public offering on
May 11, 1994.
CONTACT: American Eagle Group Inc., Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. M. Philip Guthrie, 214/448-1460 Richard M. Kurz, 214/448-1477 |
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