Crown Life Reports Growth in Business Volume for the First Nine Months of 1997.REGINA Regina (rĭjī`nə), city (1991 pop. 179,178), provincial capital, S Sask., Canada, on Wascana Creek. The city is the distribution and service center for one of the world's largest wheat-growing areas. , Saskatchewan--(BUSINESS WIRE)--Nov. 5, 1997--Crown Life Insurance (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CLA CLA, n.pr See acid, conjugated linoleic. .) Crown Life Insurance Company today released operating results for the first nine months of 1997 which reflect growth in premium revenue and total business volume. "Crown Life's performance was led by a 15 per cent increase in business volume in our Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. 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. operations," says President and Chief Executive Officer Brian A. Johnson. "Sales of Individual life and health insurance 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 reflected solid growth in the quarter, and Group pensions sales continue to track ahead of 1996 levels." Net income for the first nine months of 1997 was $27.5 million, compared with $32.2 million reported for the corresponding period last year. Higher claims for health and disability insurance products in the second quarter of 1997 caused the decrease in income. Claims experience improved in the third quarter. Shareholders' income was $18.5 million for the period ended September 30, 1997, compared with $27.4 million for the same period in 1996. Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of was $3.04 compared with $4.71 in the corresponding period last year. Fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. book value per common share Book Value Per Common Share A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Formula: increased to $88.79 at September 30, 1997, from $86.01 at December 31, 1996. Participating policyholders' income in the first nine months of 1997 was $9.0 million compared with $4.8 million in the prior year. Dividends credited to participating policyholders were $39.5 million, compared with $37.4 million for the first nine months of 1996. Premium revenue for the first nine months of 1997 showed steady growth, increasing to $636 million from $617 million earned in the same period in 1996. Total business volume, including segregated funds Segregated Fund A type of annuity that is similar to a mutual fund, and is an insurance product and offered only by insurance companies. Notes: Most segregated funds will guarantee a specific return, anywhere from 70% to 120%, over a certain period of time (five-10 years). deposits, increased by seven per cent compared with the same period in 1996. The Company's ratio of capital resources to liabilities increased to 13.9 per cent at September 30, 1997, up from 13.6 per cent at December 31, 1996. Total assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. at September 30, 1997 were $6.72 billion, up from $6.60 billion at year end 1996. At their meeting on November 5, 1997, the Directors declared a dividend of $0.625 per share on the Class I 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 December 31, 1997 to holders of record on December 8, 1997. Crown Life, now approaching its 98th year, operates 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. The Company provides life insurance, health insurance and pension programs to individuals and groups, and reinsurance services to other insurance companies. Note: Attached is the unaudited Consolidated Statement of Operations See Income statement. for the nine months ended September 30, 1997. -0-
Consolidated Statement of Operations
(Unaudited)
(THOUSANDS OF DOLLARS)
(CANADIAN DOLLARS)
Nine months ended September 30 1997 1996
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REVENUE
Premiums 635,910 616,693
Investment income 327,490 347,508
Other 12,398 11,397
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975,798 975,598
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EXPENSES
Policy benefits 719,556 735,121
Commissions and other
selling expenses 81,291 71,930
Operating expenses 90,176 83,238
Taxes 17,796 15,684
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908,819 905,973
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INCOME BEFORE POLICYHOLDERS' DIVIDENDS 66,979 69,625
Participating policyholders'
dividends 39,477 37,395
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NET INCOME 27,502 32,230
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NET INCOME IS ATTRIBUTABLE TO:
Preferred shareholders 6,849 6,852
Common shareholders 11,610 20,541
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Total shareholders 18,459 27,393
Participating policyholders 9,043 4,837
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27,502 32,230
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EARNINGS PER COMMON SHARE (in dollars) 3.36 5.95
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TOTAL BUSINESS VOLUME
Premium revenue 635,910 616,693
Segregated funds deposits and
administrative services premium
equivalents 95,312 64,618
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Total business volume 731,222 681,311
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CONTACT: Crown Life Insurance Company Alan M. Rowe, 306/751-6770 or Crown Life Insurance Company Don Savaria, 306/751-6153 or 1-800-827-6965 |
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