Crown Life Reports Third-Quarter Results.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, 1998--Crown Life Insurance (ToSE v. t. 1. To tease, or comb, as wool. :CLA CLA, n.pr See acid, conjugated linoleic. .) Crown Life Insurance Company today released operating results for the first nine months of 1998 which reflect an increase in net income. Crown Life's net income for the first nine months of 1998 was $28.3 million, up from $27.5 million earned over the same period in 1997. Shareholders' income was $12.5 million for the nine months ended September September: see month. 30, 1998, compared with $18.5 million for the same period in 1997. The 1998 results reflect higher claims incurred in special risk 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. , partially offset by the effect of reinsuring certain mortality risks in individual insurance operations. 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 $1.64, compared with $3.04 for the same period in 1997. 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 $96.02 at September 30, 1998 from $88.79 a year earlier. Participating policyholders' income for the first nine months of 1998 was $15.8 million, compared with $9.0 million for the same period in 1997. The increase in income reflects continued improvement in claims experience. Dividends credited to participating policyholders were $40.1 million, compared with $39.5 million for the first nine months of 1997. Crown Life's total premium revenue for the first nine months of 1998 was $618 million, compared with $636 million for the same period last year. The decrease was due to the reinsurance of certain individual insurance business. Premium revenue in the third quarter of 1998 was four per cent higher than in the corresponding period last year. The Company's ratio of capital resources to liabilities, a measure of financial strength, was 15.4 per cent at September 30, 1998, up from 14.5 per cent at December December: see month. 31, 1997. 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, 1998 were unchanged from year-end 1997 at $6.6 billion. At their meeting on November 5, 1998, 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, 1998 to holders of record on December 7, 1998. -0-
Consolidated Statement of Operations
(Unaudited)
(THOUSANDS OF DOLLARS)
(CANADIAN DOLLARS)
Nine months ended September 30 1998 1997
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REVENUE
Premiums 617,906 635,910
Investment income 314,805 327,490
Other 13,775 12,398
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946,486 975,798
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EXPENSES
Policy benefits 673,785 719,556
Commissions and other
selling expenses 91,834 81,291
Operating expenses 94,486 90,176
Taxes 17,942 17,796
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878,047 908,819
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INCOME BEFORE POLICYHOLDERS'
DIVIDENDS 68,439 66,979
Participating policyholders'
dividends 40,083 39,477
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NET INCOME 28,356 27,502
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NET INCOME IS ATTRIBUTABLE TO:
Preferred shareholders 6,849 6,849
Common shareholders 5,672 11,610
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Total shareholders 12,521 18,459
Participating policyholders 15,835 9,043
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28,356 27,502
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EARNINGS PER COMMON SHARE
Basic $1.64 $3.36
Fully diluted $1.64 $3.04
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