American Eagle Group Inc. reports 1994 earnings: operating income up 49.3% over 1993.DALLAS--(BUSINESS WIRE)--Feb. 21, 1995--American Eagle's 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 $7.2 million in the year ended December 31, 1994, compared to $4.8 million in 1993, an increase of 49.3 percent. Net income was $7.1 million in 1994 compared to $5.7 million, after inclusion of $1.4 million of realized investment gains, in 1993, an increase of 24.9 percent. Net income available for common stockholders increased 49.0 percent to $6.6 million in 1994 from $4.4 million in 1993. Gross premiums produced in 1994 grew 19.6 percent to $167.2 million. 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 25.2 percent to $82.7 million from $66.1 million in 1993. The combined ratio for 1994 was 92.3 percent, up 0.2 points over the 92.1 percent in 1993 as a result of a 1.4 point increase in the loss ratio which was partially offset by a 1.2 point decrease in the expense ratio. As a result of the initial public offering in May 1994, the weighted average shares outstanding in 1994 increased 63.8 percent compared to the comparable period in 1993. Net income per share was $1.26 for 1994, compared to $1.65 for 1993. Net income available for common stockholders per share was $1.16 for 1994, compared to $1.27 for 1993. For the fourth quarter of 1994, operating income was $2.7 million, compared to $2.2 million in the fourth quarter of 1993, an increase of 23.5 percent. Net income was $2.7 million for the fourth quarter of 1994, compared to $2.3 million for the fourth quarter of 1993, after inclusion of $0.1 million of realized investment gains in 1993, an increase of 21.8 percent. Net income available for common stockholders increased 41.1 percent to $2.7 million in the fourth quarter of 1994 from $1.9 million in the fourth quarter of 1993. Earned premiums, net of reinsurance, increased 33.8 percent to $22.9 million in the fourth quarter of 1994 from $17.1 million in the fourth quarter of 1993. The fourth quarter combined ratio was 85.0 percent in 1994, up 1.5 points over the 83.5 percent in 1993, as a result of a 0.4 point increase in the loss ratio and a 1.1 point increase in the expense ratio. The weighted average shares outstanding increased in 1994 by 103 percent compared to the comparable period in 1993. Net income per share was $0.39 for the fourth quarter of 1994, compared to $0.65 per share in the fourth quarter of 1993. Net income available for common stockholders per share was $0.39 for the fourth quarter of 1994, compared to $0.56 per share in the fourth quarter of 1993. M. Philip Guthrie, Chairman and Chief Executive Officer stated, We are pleased with the progress and performance in both our Aviation and Property and Casualty Divisions. Our overall results, as reflected in our annual combined ratio of 92.3 percent and our fourth quarter combined ratio of 85.0 percent and compared to recent property and casualty industry average ratios of over 110 percent, continue to distinguish American Eagle and its employees. Also, the net book value per share of our common stock increased during 1994 to $9.12, a growth of $0.85 per share. In both the year 1994 and the fourth quarter, our operating and financial results improved strongly in relation to both the prior year and the earlier quarters of 1994. 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 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, and selected artisan contractors and private yachts. The companys 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. Fourth Quarter 1994 Earnings (In thousands, except per share data) Three Months Ended Twelve Months Ended December 31 December 31 1994 1993 1994 1993 ---- ---- ---- ---- Earned premiums $ 22,854 $ 17,086 $ 82,725 $ 66,091 Operating income $ 2,749 $ 2,226 $ 7,164 $ 4,799 Net realized investment gains (losses), after federal income tax (AFIT AFIT Air Force Institute of Technology AFIT Armed Forces Institute of Transfusion (Rawalpindi, Pakistan) AFIT Arizona Forum for the Improvement of Taxation ) $ (2) $ 29 $ (21) $ 919 Net income $ 2,747 $ 2,255 $ 7,142 $ 5,718 Preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends $ 25 $ 325 $ 555 $ 1,298 Net income available for common stockholders $ 2,722 $ 1,930 $ 6,587 $ 4,420 Per share data: --------------- Operating income $0.39 $0.64(a) $1.26 $1.38(a) Net income $0.39 $0.65(a) $1.26 $1.65(a) Net income available for common stockholders $0.39 $0.56(a) $1.16 $1.27(a) Weighted average shares 7,055 3,469(a) 5,684 3,469(a) 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. ratios (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) -------------------------- Losses and LAE ratio 54.6 % 54.2 % 63.7 % 62.3 % Expense ratio 30.4 29.3 28.6 29.8 Combined ratio 85.0 % 83.5 % 92.3 % 92.1 % ====== ====== ====== ====== (a) Prior to the effects of the initial public offering. CONTACT: American Eagle Group Inc., Dallas M. Philip Guthrie, 214/448-1460 or Richard M. Kurz, Sr. 214/448-1477 |
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