Bankers Life Holding Corp. reports record first quarter 1995 operating results.CHICAGO--(BUSINESS WIRE)--April 25, 1995--Bankers Life Holding Corp. (NYSE NYSE See: New York Stock Exchange : BLH BLH Baldwin-Lima-Hamilton (locomotive manufacturer) BLH Bellingham, Washington (border patrol station) BLH Bidirectional Long Haul ) today reported first quarter 1995 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 (excluding realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. and trading income) of 51 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. , a 4 percent increase over operating earnings of 49 cents per share for the first quarter of 1994. Operating earnings were $26.9 million, compared to operating earnings of $26.7 million for the first quarter of 1994. As reported, Bankers' board of directors on March 1 received a proposal from Conseco, Inc. under which Conseco would acquire Bankers' outstanding shares not already owned by Conseco for $22 per share in cash. Under the proposal, Bankers would be merged into Conseco, with Conseco being the surviving corporation. The proposal is currently being evaluated by a special committee of the independent directors of Bankers. The special committee has retained independent counsel and an investment banking firm to advise it on the proposal. The proposed merger transaction would require the approval of a majority of Bankers' outstanding shares (other than shares held by Conseco) voting at a special shareholders' meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. . President and Chief Executive Officer Barth T. Murphy said, ``We are pleased with our strong annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. new business premium growth for the quarter of 34 percent for long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. , 31 percent for annuities and 19 percent for individual life. This once again demonstrates the success of our cross-selling strategy while we also continue to open new households with these products. For the first quarter we sold 17,400 Medicare supplement policies, a decrease in these sales of 24 percent primarily due to competitive pressures and increased sales in our other product lines. ``Our profits this quarter were adversely affected by a higher incidence of medical provider claims in our Medicare supplement line. This increase reduced 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 quarter by approximately $4 million or 8 cents per share. We are developing our response to this apparent trend in medical provider claims.'' Premiums. Compared to the first quarter of 1994, Medicare supplement collected premiums were up 1 percent to $159.9 million, annuity collected premiums rose 30 percent to $80.0 million, and long-term care insurance collected premiums increased by 17 percent to $37.6 million. Net income. First quarter 1995 net income of $26.8 million, or 51 cents per share, included net realized losses Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. of $0.2 million and trading gains of $0.1 million. This compares to first quarter 1994 net income of $26.6 million, or 49 cents per share, which included net realized gains of $0.1 million and trading losses The following contains a list of trading losses which eventually forced major corporations to go bankrupt or restructure parts of their organisation. This list is not exhaustive. of $0.2 million. Realized gains and trading income often fluctuate from quarter to quarter. Assets. Total assets at March 31, 1995 were $4.4 billion. There were no significant nonperforming investments at March 31, 1995. Approximately 4 percent of investments were high-yield bonds and less than 1 percent were mortgages. Key ratios. Excluding the mark-to-market adjustment, shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. at March 31, 1995, was $618.7 million ($11.71 per common share), up 3 percent from year-end 1994 shareholders' equity of $598.7 million. Including the mark-to-market adjustment, shareholders' equity at March 31, 1995, was $551.0 million ($10.43 per common share), up 15 percent from year-end 1994 shareholders' equity of $478.2 million. The improvement in bond values has caused our mark-to-market adjustment for fixed maturity investments to increase shareholders' equity by $52.8 million in 1995. The annualized operating return on average common equity, excluding the mark-to-market adjustment, was 18 percent for the first quarter of 1995. At March 31, 1995, the debt/equity ratio Debt/Equity Ratio A measure of a company's financial leverage calculated by dividing long-term debt by shareholders equity. It indicates what proportion of equity and debt the company is using to finance its assets. , excluding the mark-to-market adjustment, was .44 to 1. Bankers Life Holding Corp., headquartered in Chicago, IL., is a specialized insurance holding company. Bankers' principal subsidiary, Bankers Life and Casualty Bankers Life and Casualty is primarily a health insurance company in the United States. It was founded in 1879 and was previously known as White Cross. It was formerly owned by millionaire investor John D. Company, is a leading provider of Medicare supplement, long-term care and other individual health, life, annuity and group insurance products, which it markets through career agents. -0-
BANKERS LIFE HOLDING CORPORATION
(NYSE: BLH)
Condensed Consolidated Statement of Operations
(in millions, except per-share amounts)
Quarter Ended March 31:
1995 1994
____________________________________________________________________
Revenues . . . . . . . . . . . . . . . . . . . $ 374.6 $ 349.0 Earnings from insurance operations (operating earnings). . . . . . . . . . . . . 26.9 26.7 Trading income (loss), net . . . . . . . . . . 0.1 (0.2) Realized gains (losses), net . . . . . . . . . (0.2) 0.1 Net income . . . . . . . . . . . . . . . . . . $ 26.8 $ 26.6 Per common share-primary and fully diluted: Weighted average shares . . . . . . . . . . . 52.8 54.6 Earnings from insurance operations (operating earnings) . . . . . . . . . . . . $ 0.51 $ 0.49 Trading income (loss), net. . . . . . . . . . 0.00 0.00 Realized gains (losses), net. . . . . . . . . 0.00 0.00 Net income. . . . . . . . . . . . . . . . . . $ 0.51 $ 0.49 Additional statistical data distributed to analysts is available upon request to the Company's investor contact. CONTACT: Bankers Life Holding Corporation, Chicago Patrick Mitchell, 312/396-7099 |
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