Printer Friendly

CAPITAL HOLDING REPORTS FOURTH QUARTER EARNINGS OF $1.63 PER SHARE; FULL YEAR EARNINGS AT $5.77, UP 12.0 PERCENT

 CAPITAL HOLDING REPORTS FOURTH QUARTER EARNINGS OF $1.63 PER SHARE;
 FULL YEAR EARNINGS AT $5.77, UP 12.0 PERCENT
 LOUISVILLE, Ky., Feb. 12 /PRNewswire/ -- Capital Holding Corporation (NYSE: CPH) today reported fourth quarter net income, excluding realized investment gains and losses and related deferred acquisition cost amortization, of $1.63 per share, or $79.1 million. This represents a 10.9 percent increase over the $1.47 per share, or $69.1 million reported for the fourth quarter of 1990. For full year 1991, the company's net income, excluding realized investment gains and losses and related amortization, was $5.77 per share, or $270.3 million, an increase of 12.0 percent over the $5.15 per share, or $246.7 million reported at year end 1990.
 "We had a strong quarter and another year of solid results," said Capital Holding Chairman, President and Chief Executive Officer Irving W. Bailey II. "Capital Holding continues to perform well despite the uncertain economic environment."
 The company reported increased net income for the fourth quarter, including realized investment gains and losses and related amortization, of $66.6 million, or $1.37 per share. This was up from net income of $59.8 million, or $1.25 per share in the fourth quarter one year ago. For the full year, net income was $250.2 million, up 50.6 percent from the year-earlier period, when bond sales in an increasing interest rate climate produced significant realized losses. Normalized return on equity was 16.6 percent for the twelve months. (Complete earnings figures are included on the following table.)
 Realized investment losses, net of tax and related deferred acquisition cost amortization, were $12.4 million, or $.26 per share for the quarter, versus a loss of $9.3 million, or $.22 per share for the same period last year. For the full year, the company produced a realized investment loss, net of tax and related amortization, of $20.1 million, or $.44 per share, versus a loss of $80.5 million, or $1.76 per share for the comparable period one year ago. The company reported twelve-month realized investment gains of $28.1 million from its bond and stock portfolios. These were offset in 1991 by $12.7 million of writedowns on bond holdings (fourth quarter -- $1.1 million), $10.2 million of mortgage loan writedowns (fourth quarter -- $3.8 million), and a $9.5 million addition to mortgage loan loss reserve (fourth quarter -- $3.2 million). Additionally, in the fourth quarter, a $14.5 million charge was taken, reflecting the decrease in value of certain mortgage-backed securities.
 Revenues for the fourth quarter, excluding realized investment gains and losses, were $733.2 million, down 5.1 percent from the same period last year. For the full year, revenues were $2.69 billion, also down modestly from the $2.70 billion reported for full year 1990. Premium income of $306.9 million in the quarter decreased by 15.4 percent. For the twelve-month period, premium income was down 9.9 percent, reflecting lower structured settlement sales. Net investment income rose 3.0 percent in the quarter to $383.4 million, and increased 5.6 percent for the year to $1.48 billion.
 Agency Group's pretax operating earnings of $173.0 million were up 4.5 percent for the year; both life and health claims were higher than expected. (Pretax earnings, as reported here and for the segments following, exclude realized investment gains and losses and related deferred acquisition cost amortization.) Life and health premiums for the twelve months were up 5.2 percent, and lapses declined by 1.3 additional points to 16.3 percent, continuing an improvement from 24.9 percent in 1983.
 Pretax earnings in the Direct Response Group were $70.7 million, up 17.4 percent over 1990's full year results. Life and health results were up 3.4 percent for the year, a continued improvement due partially to improved claims experience. Property and casualty results were up sharply from last year's losses, reflecting that line's turnaround. Life premiums increased 8.0 percent for the year. Health premiums decreased 2.1 percent, as the group discontinued broad market television advertisements for Medicare-supplement insurance, moving to a more targeted marketing approach.
 The Accumulation and Investment Group had pretax earnings of $112.2 million for the full year, up 17.0 percent. Annualized margins were 115 basis points, essentially even with last year's levels. A favorable interest rate environment in 1991 helped profits, but the group moved to a more conservative interest rate exposure position, which offset some of the benefit of lower interest rates. Asset quality in the group's bond portfolios remained high, with an overall rating of AA.
 The Banking Group had pretax earnings of $73.2 million, up from the $57.3 million reported for the previous year. Net loan chargeoffs on the total portfolio averaged 4.6 percent, in line with the company's expectations, reflecting a maturing portfolio and the continuing impact of a soft economy. Overdue accounts stood at 2.6 percent at year end.
 "We continue to be well positioned to navigate in this uncertain economic environment, and I'm looking forward to the corporation's continued success in the year to come," Bailey said.
 Capital Holding is one of the nation's five largest shareholder- owned life insurance organizations, with $18.9 billion in assets and $53.6 billion of life insurance coverage in force.
 The corporation offers a broad range of financial services and products through agents, direct-marketing media, investment professionals and retail locations. Its common stock is listed on the New York and Pacific Stock Exchanges under the ticker symbol CPH; its preferred stock is listed on the New York Stock Exchange under the symbol CPHF.
 CAPITAL HOLDING CORPORATION
 THREE- AND TWELVE-MONTH FINANCIAL HIGHLIGHTS
 Three Months Ended December 31, 1991 1990
 Operations:
 Total revenues $ 722,017,000 $ 768,024,000
 Net income, excluding
 realized investment loss and
 related amortization, net of tax 79,056,000 69,109,000
 Realized investment loss,
 net of tax and
 related amortization, net of tax (12,409,000) (9,308,000)
 Net income 66,647,000 59,801,000
 Per share:
 Net income, excluding
 realized investment loss and
 related amortization, net of tax $ 1.63 $ 1.47
 Realized investment loss,
 net of tax and
 related amortization, net of tax (.26) (.22)
 Net income 1.37 1.25
 Twelve Months Ended December 31, 1991 1990
 Operations:
 Total revenues $2,670,656,000 $2,577,309,00
 Net income, excluding
 realized investment loss and
 related amortization, net of tax 270,311,000 246,740,000
 Realized investment loss,
 net of tax and
 related amortization, net of tax (20,079,000) (80,547,000)
 Net income 250,232,000 166,193,000
 Per share:
 Net income, excluding
 realized investment loss and
 related amortization, net of tax $ 5.77 $ 5.15
 Realized investment loss,
 net of tax and
 related amortization, net of tax (.44) (1.76)
 Net income 5.33 3.39
 -0- 2/12/92
 /CONTACT: Steve Wilson, 502-560-2723 or Bonnie Otto, 502-560-3019, both of Capital Holding Corporation/
 (CPH) CO: Capital Holding Corporation ST: Kentucky IN: INS SU: ERN


DF -- CH006 -- 9458 02/12/92 17:34 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 12, 1992
Words:1203
Previous Article:AMERICAN STOCK EXCHANGE DAILY REPORT
Next Article:LAKEHEAD PIPE LINE PARTNERS, L.P. ANNOUNCES 1991 FINANCIAL RESULTS
Topics:


Related Articles
ORION CAPITAL PER-SHARE OPERATING RESULTS FOR 1992'S FOURTH QUARTER INCREASED 25 PERCENT BEFORE ONE-TIME ITEMS
USLIFE CORPORATION REPORTS 17 PERCENT INCREASE IN SECOND QUARTER RESULTS; FIRST HALF RESULTS UP 16 PERCENT
LAWYERS TITLE CORPORATION REPORTS FOURTH QUARTER EARNINGS
ARTHUR J. GALLAGHER & CO. ANNOUNCES FOURTH QUARTER RESULTS
GUARANTY NATIONAL CORP.'S 1994 OPERATING EARNINGS PER SHARE INCREASED 32 PERCENT
GUARANTY NATIONAL CORPORATION REPORTS NET EARNINGS OF $8.9 MILLION FOR 1995
The Hartford's Fourth Quarter Net Income Jumps 45 Percent
ConAgra's Third Quarter EPS Up 14.5%; Nine Month EPS Up 14.7%
Stewart Information Services Corporation Announces Third Quarter Earnings
USF&G Releases 1997 Fourth Quarter and Year-End Results: Pre-Tax Operating Earnings Up 26 and 49 Percent, Respectively

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters