Crown Life Reports Increased Premium Revenue for First Six 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)--Aug. 7, 1997--Crown Life (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 six months of 1997 which reflect a continued increase in premium revenue and total business volume. Net income for the first six months of 1997 was $15.6 million, compared with $20.3 million reported for the corresponding period last year. Following several years of favourable claims experience, claims were higher in the second quarter, causing the decrease in income. Shareholders' income was $10.0 million for the first six months of 1997, compared with $17.2 million for the same period in 1996. The 1997 results reflect higher claims for health and disability insurance products than 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 $1.57 compared with $2.99 in the same period in 1996. 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 $87.52 at June June: see month. 30, 1997, from $82.20 a year earlier. Participating policyholders' income in the first six months of 1997 was $5.6 million compared with $3.1 million in the prior year. Dividends credited to participating policyholders were $25.7 million, compared with $24.1 million for the first six months of 1996. Premium revenue increased by five per cent in the first half of 1997 compared with the same period in 1996, reflecting sales growth as well as retention of existing business. Total premium revenue for the first six months of 1997 was $420 million, compared with $399 million for the same period of 1996. Total business volume for the first six months of 1997, including premium revenue and deposits to 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). , increased to $483 million from $443 million for the first six months of 1996, an increase of nine per cent. "Sales activity continues to build on the momentum achieved in 1996," says President and Chief Executive Officer, Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. A. Johnson. "Our major objective of business growth is being achieved through products and services that demonstrate our clear focus on the customer." Crown Life's ratio of capital resources to liabilities increased to 13.7 per cent at June 30, 1997, up from 13.6 per cent at December December: see month. 31, 1996 and 13.0 per cent at June 30, 1996. Total capital resources increased to $692 million from $671 million a year ago. 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 June 30, 1997 were $6.7 billion, up from $6.5 billion a year earlier. At their meeting on August 7, 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 September 30, 1997 to holders of record on September 8, 1997. Now in its 97th year of operation, Crown Life 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 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 STATEMENT OF OPERATIONS
(Unaudited)
(THOUSANDS OF DOLLARS)
(CANADIAN DOLLARS)
Six months ended June 30 1997 1996
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REVENUE
Premiums 420,248 398,707
Investment income 213,692 230,741
Other 7,841 8,137
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641,781 637,585
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EXPENSES
Policy benefits 474,843 480,293
Commissions and other selling expenses 54,309 47,988
Operating expenses 60,045 54,340
Taxes 11,281 10,472
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600,478 593,093
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INCOME BEFORE POLICYHOLDERS' DIVIDENDS 41,303 44,492
Participating policyholders' dividends 25,667 24,143
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NET INCOME 15,636 20,349
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NET INCOME IS ATTRIBUTABLE TO:
Preferred shareholders 4,566 4,577
Common shareholders 5,438 12,663
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Total shareholders 10,004 17,240
Participating policyholders 5,632 3,109
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15,636 20,349
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EARNINGS PER COMMON SHARE (in dollars) 1.57 3.67
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TOTAL BUSINESS VOLUME
Premium revenue 420,248 398,707
Segregated funds deposits and
administrative services premium
equivalents 62,969 43,937
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Total business volume 483,217 442,644
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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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