American States reports record first-quarter earnings.INDIANAPOLIS--(BUSINESS WIRE)--April 22, 1997--American States Financial Corporation (NYSE NYSE See: New York Stock Exchange :ASX ASX See: Australian Stock Exchange ) today reported robust first-quarter results, including record operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before . The Indianapolis-based property-casualty insurer produced both record first-quarter 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. of $46.2 million, or 77 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , and solid growth in premium, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. American States Chairman and Chief Executive Officer Robert A. Anker. The operating income was up 38.8 percent from $33.3 million in the weather-battered first quarter of 1996, and topped a mark set in 1995, before American States was publicly traded. If the company's initial public offering had occurred in January 1996, first-quarter '96 operating income per share would have been 48 cents. "First quarter results are outstanding," Anker said. "With nothing unusual to obscure or distort the record, they provide clear evidence that our profit and growth initiatives are working as we anticipated." Net written premium grew 4.2 percent from $405.7 million in first-quarter 1996 to $422.8 million in 1997. "We believe that our growth rate for the quarter will exceed the industry rate for the first time in many quarters," he said. Net income for the quarter was $54.0 million, up 15.2 percent from $46.9 million in the first quarter of 1996. Property-casualty companies The first-quarter 1997 combined ratio of 100.8 compares to the 108.3 recorded for the same part of 1996, while the loss ratio for the quarter was 58.8 percent, down from 64.9 in 1996. "Early 1996 was marked by heavy storm losses, reaching $42.8 million, pre-tax. In contrast, first-quarter 1997 pre-tax storm losses, at $22.8 million, were in line with historic norms," Anker said. "Realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. continues on pace," he said. Cost savings of more than $7 million in the quarter were attributable to the reorganization. This consolidation of field offices, announced in November 1995, is nearly 90 percent complete. The combination of increased premium writings and savings from realignment contributed to a decrease of more than one point in the underwriting expense ratio. Life Company American States Life Insurance Company operating earnings for the quarter were $3.6 million, up 11.9 percent from $3.2 million in the first quarter of 1996. Net income was $3.4 million, 10.0 percent above the $3.1 million net income for the first period in '96. American States Financial Corporation is a holding company affiliated with Lincoln National Corporation Lincoln National Corporation (NYSE: LNC) is a holding company, which operates multiple insurance and investment management businesses through subsidiary companies. LNC was organized under the laws of the state of Indiana in 1968, and maintains its principal executive offices (NYSE:LNC LNC Legal Nurse Consultant LNC Libertarian National Committee LNC Low Noise Converter LNC Lloyd Noble Center (University of Oklahoma, Norman campus) LNC Local Node Clock LNC Chief Legalman (Naval Rating) ), that, through its subsidiaries, markets property, casualty and life insurance coverages. Operating exclusively through the independent agency system, American States is a leading writer of business insurance for small- to medium-sized businesses, and also markets preferred personal insurance coverages. -0-
American States Financial Corporation
Digest of Earnings
(in millions, except per share amounts)
Quarter Ended March 31st
1997 1996
Revenue $501.9 $513.4
Net Income $54.0 $46.9
Net Income per share $0.90 $0.94
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Weighted Average Number of Shares 60.1 50.0
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CONTACT: American States Financial Corporation Investors: Mark Chappell Mark Chappell is a British sitcom writer and screenwriter. His credits include My Life in Film (for BBC Three), Tony Blair, Rock Star (for Channel 4 Television/V Good Films) Perfect Day, The Millennium , 317/262-6930 Media: John Cook, 317/262-6790 |
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