CROWN LIFE REPORTS FIRST QUARTER INCOME.REGINA, Saskatchewan--(BUSINESS WIRE)--May 9, 1995--Crown Life Insurance Company announced today that combined shareholders' and participating policyholders' net income in the first three months of 1995 was $8.9 million, compared with $8.0 million in the corresponding period of 1994. Shareholders' net income was $7.5 million, compared with $5.3 million in the prior year. Earnings per share after payment of preferred share dividends were $1.49 in 1995, compared with $0.86 in 1994. The improvement in shareholders' income primarily results from improved claims experience. Participating policyholders' net income in the first quarter of 1995 was $1.4 million, compared with $2.8 million in 1994. Dividends credited to participating policyholders amounted to $13.3 million, compared with $12.3 million in 1994. "Crown Life's operating results for the first three months of 1995 reflect a consistent trend of improving profitability, asset quality and capital strength. The positive results continue the trend established last year and demonstrate the successful repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. of the Company," says President and Chief Executive Officer, Brian A. Johnson. As at March 31, 1995, provisions of $63 million existed for future costs of asset defaults unchanged from year end. In the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , properties acquired by foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. at March 31, 1995 were US$54 million, compared with US$57 million at year end. Mortgage loans in arrears Adv. 1. in arrears - in debt; "he fell behind with his mortgage payments"; "a month behind in the rent"; "a company that has been run behindhand for years"; "in arrears with their utility bills" behindhand, behind 90 days or more at March 31, 1995 were US$39 million, compared with US$25 million at December 31, 1994. In the Canadian mortgage loan portfolio, arrears of 90 days or more were $15 million, compared with $12 million at year end. The Company's capital ratio was strengthened during the first quarter. At March 31, 1995, combined participating policyholders' and 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. was $441 million, compared with $435 million at December 31, 1994. The ratio of equity plus deferred net gains realized on equity investments to liabilities improved to 8.9 percent during the quarter from 8.6 percent at year end. On March 24, 1995, the Company announced a rights offering, subject to regulatory approvals, which will entitle en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: holders of common shares to subscribe for subordinated convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. of Crown Life. HARO Financial Corporation, which owns 64.48 percent of the Company's common shares, has agreed to subscribe for its pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. share of the offering plus debentures not acquired by other shareholders, so that in any event Crown Life would issue debentures totalling a minimum of $150 million. The maximum amount which may be subscribed under the offering is $173 million. As a result of the proposed offering, Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. has placed their financial strength rating of Crown Life under review for possible upgrade. It is expected that details of the offering will be sent to common shareholders within the next month. In 1995, two new sales offices have been opened. A new agency office was opened in Toronto in January to distribute individual life, health and pension products. In May, a new Group insurance office was opened in Edmonton. Expansion of distribution is an important aspect of the Company's growth strategy. At the Company's Annual Meeting on May 9, 1995, The Honourable honourable or US honorable Adjective 1. principled 2. worthy of respect or esteem honourably adv Honourable Adjective Allan E. Blakeney, P.C., O.C., Q.C., Mr. C Mr C (aka Mr. Chuggs, born Richard West on January 2 1964) is a British DJ, musician and rapper. Best known for fronting The Shamen during their most commercially successful era, Mr C is also an acclaimed house music DJ and co-owner/co-founder of London's The End nightclub . Dennis Knight Dennis Knight, born December 26, 1968 in Biggers, Arkansas, is an American professional wrestler best known for his appearances with the World Wrestling Federation as Phineas I. Godwinn and Mideon. and Mr. Robert H. Lee were elected as new members of the Board of Directors. At its meeting on May 9, the Board declared a quarterly dividend of $0.625 per share on the Class 1 Cumulative Preferred Noun 1. cumulative preferred - preferred stock whose dividends if omitted accumulate until paid out cumulative preferred stock preference shares, preferred shares, preferred stock - stock whose holders are guaranteed priority in the payment of dividends but Shares, payable on June 30, 1995 to holders of record on June 12, 1995. Attached are the unaudited Consolidated Statements of Operations for the three months ended March 31, 1995 and 1994. Crown Life is Canada's ninth largest life insurer operating in North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. and selected international markets. Now in its 95th year of operation, the Company provides life insurance, health insurance and pension programs on a participating and non-participating basis to individuals and groups, and 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. services to other insurance companies. -0- CONSOLIDATED STATEMENTS OF OPERATIONS (thousands of dollars) (unaudited) Three months ended March 31 1995 1994 --------------------------------------------------------- REVENUE
Premiums 208,947 217,732
Investment income 132,988 151,244
Other 3,271 3,117
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345,206 372,093
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EXPENSES
Policy benefits 266,507 287,367
Commissions and other selling
expenses 23,593 31,807
Operating expenses 27,930 27,795
Taxes - income, premium and other 4,947 4,816
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322,977 351,785
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Income from operations 22,229 20,308 Participating policyholders' dividends 13,315 12,263 --------------------------------------------------------- Net income 8,914 8,045 ---------------------------------------------------------- ATTRIBUTABLE TO:
Preferred shareholders 2,296 2,312
Common shareholders 5,154 2,963
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Total shareholders 7,450 5,275
Participating policyholders 1,464 2,770
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8,914 8,045
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Earnings per share (in dollars) $ 1.49 $ 0.86
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CONTACT: Alan M. Rowe, (306) 751-6770 Don Savaria, (306) 751-6153 |
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