Bankers Life Holding Corp. reports third quarter 1996 operating results.CHICAGO--(BUSINESS WIRE)--Nov. 6, 1996--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 third quarter 1996 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 investment gains, trading income, restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). income and extraordinary charge) of $31.5 million, or 64 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. , compared to $30.3 million, or 58 cents per share, in the third quarter of 1995. For the first nine months of 1996, operating earnings were $94.7 million, or $1.92 per share, compared to $84.9 million, or $1.61 per share, in the first nine months of 1995. Pending merger. As reported, on Aug. 26, 1996, Conseco Conseco (NYSE: CNO), originally Security Life of Indiana, is a financial services organization based in Carmel, Indiana. Conseco's insurance subsidiaries provide life insurance, annuity and supplemental health insurance products to more than 4 million customers in the , Inc. (NYSE:CNC (Computerized Numerical Control) See numerical control. CNC - Collaborative Networked Communication ) announced its intention to merge See mail merge and concatenate. with BLH in a transaction under which Conseco will acquire the outstanding shares of BLH that Conseco does not already own for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $117 million in Conseco common stock. In the intended merger, each of the 4.7 million outstanding shares of BLH common stock not already owned by Conseco would be converted into the right to receive $25.00 in Conseco common stock. Completion of the transaction, which is subject to review by the Securities and Exchange Commission of the information to be submitted to shareholders of BLH describing the terms of the merger and their appraisal rights Appraisal rights A right of shareholders in a merger to demand the payment of a fair price for their shares, as determined independently. , is expected to occur by early January January: see month. . Net income. Third quarter 1996 net income of $32.1 million, or 65 cents per share, included: (1) trading income of $0.4 million (1 cent per share); (2) net 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. of $0.3 million (nil per share); and (3) an extraordinary charge of $0.1 million (nil per share) related to early retirement of debt. This compares to third quarter 1995 net income of $30.7 million, or 59 cents per share, which included 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 (nil per share) and realized gains of $0.6 million (1 cent per share). Net income for the first nine months of 1996 of $94.3 million, or $1.91 per share, included: (1) trading losses of $0.9 million (2 cents per share); (2) net realized gains of $0.2 million (nil per share); (3) restructuring income of $10.4 million (21 cents per share) as the result of the sale of Bankers' investment in Noble Broadcast Group, Inc.; and (4) an extraordinary charge of $10.1 million (20 cents per share) related to early retirement of debt. This compares to net income in the first nine months of 1995 of $90.9 million, or $1.73 per share, which included trading income of $1.4 million (3 cents per share) and realized gains of $4.6 million (9 cents per share). Bankers Life Holding Corp., headquartered in Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , Ill., is a 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. 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, serves America's seniors as a leading provider of Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. supplement, 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. and other individual health, life and annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. products, which it markets through career agents and other distribution channels. -0-
Bankers Life Holding Corp. (NYSE: BLH)
Financial Highlights (in millions, except per-share amounts) (1)
Quarter Nine Months
Ended Sept. 30: Ended Sept. 30:
1996 1995 1996 1995
Revenues $384.5 $376.0 $1,176.2 $1,142.9
Earnings from insurance
operations
(operating earnings) (1) 31.5 30.3 94.7 84.9
Trading income (losses),
net of related costs
and taxes 0.4 (0.2) (0.9) 1.4
Realized gains (losses),
net of related costs,
amortization and taxes 0.3 0.6 0.2 4.6
Restructuring income,
net of tax 0.0 0.0 10.4 0.0
Extraordinary charge,
net of tax (0.1) 0.0 (10.1) 0.0
Net income $32.1 $30.7 $94.3 $90.9
Per common share--primary
and fully diluted:
Weighted average shares
(in millions) 49.4 52.3 49.4 52.6
Earnings from insurance
operations
(operating earnings) (1) $0.64 $0.58 $1.92 $1.61
Trading income (loss),
net of related
costs and taxes 0.01 0.00 (0.02) 0.03
Realized gains (losses),
net of related costs,
amortization and taxes 0.00 0.01 0.00 0.09
Restructuring income,
net of tax 0.00 0.00 0.21 0.00
Extraordinary charge,
net of tax 0.00 0.00 (0.20) 0.00
Net income $0.65 $0.59 $1.91 $1.73
Total assets at period-end
(in millions) $5,033.3 $4,710.9
Notes payable of Bankers
at period-end (in millions) $418.1 $272.6
Book value per share,
excluding the effect of
unrealized appreciation
(depreciation) of fixed
maturity investments $21.07 $18.79
(1) Excludes trading income (losses), realized investment gains
(losses), restructuring income and extraordinary charge.
All data unaudited.
Bankers Life Holding Corp.
Consolidated Balance Sheet (in millions)
At Sept. 30, At Dec. 31,
1996 1995
(Unaudited) (Audited)
Assets
Investments:
Actively managed fixed
maturities at fair value $3,204.7 $3,252.3
Mortgage loans 4.7 5.2
Credit-tenant loans 106.9 88.9
Policy loans 47.8 47.3
Short-term investments 36.9 42.8
Investment in American
Life Holdings, Inc. 194.8 68.0
Other invested assets 43.0 10.4
Total investments 3,638.8 3,514.9
Accrued investment income 51.2 49.5
Accounts receivable and
uncollected premiums 47.7 43.9
Reinsurance receivables 34.7 29.9
Cost of policies purchased 532.1 515.6
Cost of policies produced 335.4 244.2
Goodwill, net of accumulated
amortization 373.6 369.3
Other assets 19.8 17.9
Total assets 5,033.3 4,785.2
Liabilities and Shareholders' Equity
Liabilities
Insurance liabilities 3,374.7 3,265.7
Income tax liabilities 23.1 59.8
Investment borrowings 112.8 28.1
Notes payable 418.1 301.5
Other liabilities 90.9 98.2
Total liabilities 4,019.6 3,753.3
Shareholders' equity
Common stock and additional
paid-in capital 734.0 748.8
Unrealized appreciation
(depreciation) of investments, net:
Fixed maturity securities (27.9) 46.7
Other invested assets 0.6 (0.2)
Retained earnings 307.0 236.6
Total shareholders' equity 1,013.7 1,031.9
Total liabilities and
shareholders' equity $5,033.3 $4,785.2
Bankers Life Holding Corp.
Consolidated Statement of Operations (in millions)
Quarter Nine Months
Ended Sept. 30: Ended Sept. 30:
1996 1995 1996 1995
Revenues
Insurance policy income $317.8 $316.4 $961.8 $937.3
Investment activity:
Net investment income 65.3 62.0 191.0 188.3
Net trading income (loss) 0.6 (0.3) (1.4) 2.2
Net realized gains (losses) 0.6 1.1 5.9 14.3
Restructuring income 0.0 0.0 16.0 0.0
Equity in earnings of
American Life Holdings, Inc. 1.8 1.4 5.9 3.0
Other income (loss) (1.6) (4.6) (3.0) (2.2)
Total revenues 384.5 376.0 1,176.2 1,142.9
Benefits and expenses
Insurance policy benefits 229.4 231.3 715.2 709.1
Amortization related
to operations 34.4 31.4 90.0 92.4
Amortization related to
realized gains and losses 0.2 0.1 5.6 7.1
Interest expense on annuities
and financial products 20.6 19.0 60.8 57.0
Interest expense on
notes payable 5.4 7.5 18.1 23.6
Interest expense on
investment borrowings 1.8 1.0 4.1 4.4
Other operating costs
and expenses 41.1 37.5 115.8 107.2
Total benefits and expenses 332.9 327.8 1,009.6 1,000.8
Income before income taxes
and extraordinary charge 51.6 48.2 166.6 142.1
Income taxes 19.4 17.5 62.2 51.2
Income before extraordinary
charge 32.2 30.7 104.4 90.9
Extraordinary charge
on extinguishment of debt,
net of taxes 0.1 0.0 10.1 0.0
Net income $32.1 $30.7 $94.3 $90.9
All data unaudited.
CONTACT: Bankers Life Holding Corp., Chicago Jim Rosensteele, 317/817-2893 |
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