Citizens announces an increase in assets, capitalization and a decrease in earnings.(AMEX-CIA), a life insurance holding company announced significant increases in total assets and capital as of the end of its third quarter. Total revenues were up during the period. However, net income was down for the nine month period ended September September: see month. 30, 1995 to $2.2 million, or earnings of $0.12 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 $3.3 million, or $0.20 per share the prior year. Revenues increased to $37,155,615, as compared to $35,404,740 for the first nine months of 1994, an increase of 4.9%. Premium income increased by 2.4% to $32,166,089 for the third quarter of 1995, compared to $31,417,440 for the same period in 1994. Net investment income grew to $4.9 million, compared to $3.9 million in 1994, an increase of 24.7%. This increase reflects the earnings on the company's larger asset base, as well as higher yields that were obtained in the bond market earlier this year. Earnings in 1995 have trailed the prior year due to a lower sales volume during the year resulting from a temporary disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. in an international market that has yielded higher productivity for the company in recent years and operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. increases. Earnings for the third quarter were $901,000 or $.05 cents per share, compared to $1.4 million or $.09 cents per share for the same period in 1994. Revenues decreased slightly to $13.5 million, due to the lower sales of new policies during the quarter. The decline in sales and lower levels of capital gains were the primary reasons for the reduced quarterly earnings. Many of the company's top international agents were out of production attending a sales conference sales conference n → conferencia de ventas sales conference n → réunion f de vente sales conference n → 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. in the third quarter. New sales have improved in the early part of the fourth quarter and it is expected that premium income will continue to increase during the last period of the year. Total assets increased from $149.8 million at Dec. 31, 1994 to $199.3 million at Sept. 30, 1995, an increase of 33% due to the merger of American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Liberty Financial Corp. which was consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. during September and policy reserve increases. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. increased 78.1% during 1995, to $62.4 million from $35.1 million at Dec. 31, 1994 as a result of the acquisition of American Liberty for shares of the Company's Class A common stock and improvement in the market value of the Company's "available for sale" bond portfolio. The previously announced acquisition of Insurance Investors & Holding Co. of Peoria Peoria (pēôr`ēə). 1 City (1990 pop. 50,618), Maricopa co., central Ariz., a suburb of Phoenix; settled 1897, inc. 1954. , Ill. is proceeding, with Investors' stockholders' expected to meet late in the fourth quarter to consider the transaction. -0-
Citizens, Inc.
Comparative Consolidated Financial Highlights
Operating Statements
(Unaudited) (Unaudited)
Nine-Months Ended Three-Months Ended
Sept. 30, Sept. 30,
1995 1994 1995 1994
Premiums and other
revenues
Premium income $32,166,089 $31,417,440 $11,660,436 $12,119,111
Net investment income 4,898,497 3,929,841 1,774,243 1,390,663
Other 90,229 57,459 (14,681) 16,907
Total revenues $37,155,615 $35,404,740 $13,420,798 $13,526,681
Benefits and expenses
Increase in future
policy benefit
reserves $ 7,355,554 $ 8,253,690 $ 2,395,711 $ 3,531,553
Claims and surrenders 13,791,382 12,710,675 4,797,568 4,339,065
Policyholder dividends 1,780,506 1,704,301 667,099 641,303
Commissions 7,558,495 8,598,620 2,307,494 3,522,835
Underwriting and
insurance expenses 4,413,629 3,593,696 1,514,144 1,495,410
Net change in deferred
policy acquisition
costs (1,936,106) (4,025,235) (308,932) (1,881,197)
Other 734,891 583,015 321,936 122,237
Total benefits
and expenses $33,698,351 $31,418,762 $11,695,020 $11,771,206
Operating income 3,457,264 3,985,978 1,725,778 1,755,475
Realized gains on investments (94,193) 171,887 (63,851) 36,091 Income before federal income tax $ 3,363,071 $ 4,157,865 $ 1,661,927 $ 1,791,566 Federal income tax expense $ 1,171,149 $ 861,929 $ 760,661 $ 343,871
Net income $ 2,191,922 $ 3,295,936 $ 901,666 $ 1,447,695
Income Per Share
Operating income per share $0.12 $0.20 $0.05 $0.09 Net income per share $0.12 $0.20 $0.05 $0.09 Average shares outstanding 19,322,743 16,672,514 19,322,743 16,672,514
Balance Sheets
Sept. 30, June 30, March 31, Dec. 31,
1995 1995 1995 1994
Total assets $199,336,938 $157,348,570 $152,477,360 $149,797,604
Total invested
assets $124,165,312 $100,606,260 $ 95,600,298 $ 93,828,650
Stockholders'
equity $ 64,589,258 $ 38,572,242 $ 36,622,785 $ 35,055,373
Sept. 30,
1994
Total assets $144,878,120
Total invested
assets $ 91,896,105
Stockholders'
equity $ 33,304,734
CONTACT: Citizens, Inc., Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum Mark A. Oliver Ol·i·ver , Joseph Known as "King Oliver." 1885?-1938. American jazz musician and composer who had a great influence on the style of Louis Armstrong. His Creole Jazz Band was the first Black group to make jazz recordings. 512/837-7100 |
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