Crown Life reports sales growth in the first nine months of 1996.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, 1996--Crown Life Insurance (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , ME:CLA CLA, n.pr See acid, conjugated linoleic. .) Crown Life today released operating results for the first nine months of 1996 reflecting increased sales volumes across the Company's 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. operations and in 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. "We are achieving sustained progress towards our goal of profitable growth," says 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, President and Chief Executive Officer. "Income and capital ratios are at solid levels." Business volumes increased by almost 13 per cent in the Company's Canadian and Reinsurance operations where premium revenue and 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 were significantly higher than 1995. For the Company overall, there was a four per cent increase in business. Combined shareholders' and policyholders' net income for the first nine months of 1996 was $32.2 million, compared with $34.3 million for the corresponding period last year. The 1995 results reflected better than normal claims experience in the shareholders' account. Shareholders' net income was $27.4 million in the first nine months of 1996 and participating policyholders' net income was $4.8 million. Earnings per share was $5.95, compared with $6.38 in the same period of 1995. Dividends credited to participating policyholders were $37.4 million, compared with $35.9 million for the first nine months of 1995. 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 $97.35 at September September: see month. 30, 1996 from $88.18 a year earlier. On October 31, 1996, regulatory approval was granted for the acquisition of the group pension business of Aetna Life Insurance Company of Canada, announced in June this year. This business includes assets under administration of almost $300 million, for approximately 21,000 pension plan participants Plan participants Employees or other beneficiaries who are eligible to receive benefits from a company's employee benefit plan. , and will be reflected in the fourth quarter financial statements. At September 30, 1996, Crown Life's ratio of capital resources to liabilities was 14.4 per cent, an increase from 13.2 per cent a year earlier and 13.5 per cent at December 31, 1995. This ratio continues to be above the average for the largest Canadian life insurance companies, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the latest available figures. Crown Life's progress in terms of capital development, earnings quality, new business growth and asset quality has been recognized independently by the rating agencies. In September, Standard & Poor's raised their claims paying rating for Crown Life to A-. In their 1996 report on the Canadian life insurance industry, released in October, Canadian insurance industry analyst, TRAC TRAC - Text Reckoning And Compiling Insurance Services Ltd., reported that Crown Life was within the TRAC recommended ranges on seven of their eight financial tests using December 31, 1995 data, compared with five at the end of 1994. These upgrades follow ratings increases for Crown Life announced earlier in the year by 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. and Dominion Bond Rating Service Dominion Bond Rating Service is a credit rating agency based in Toronto, Ontario. Founded in 1976, it is one of the largest credit rating agencies in Canada. It is one of five Nationally Recognized Statistical Rating Organizations in the United States, though significantly smaller . "In an environment where very few life insurers in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. have received upgrades, these ratings increases reflect significant achievements," explains Johnson. "With solid results and continued business growth, Crown Life is demonstrating sustained progress." At their meeting on November 5, 1996, 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, 1996 to holders of record on December 9, 1996. Now in its 96th year of operation, Crown Life ranks among the top five per cent of North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. life insurance companies. Operating in North American 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: Following are the unaudited Consolidated Statements of Operations for the nine months ended September 30, 1996. -0-
CONSOLIDATED STATEMENTS OF OPERATIONS
(thousands of dollars)
(unaudited)
Nine months ended
September 30 1996 1995
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Revenue
Premiums 616,693 600,425
Investment income 354,373 391,823
Other 11,397 9,581
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982,463 1,001,829
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Expenses
Policy benefits 732,651 757,932
Commissions and other
selling expenses 71,930 71,302
Operating expenses 85,708 85,696
Taxes 15,684 14,707
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905,973 929,637
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Income from operations 76,490 72,192
Interest expense on convertible
subordinated debentures 6,865 2,002
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Income after interest
expense 69,625 70,190
Participating policyholders'
dividends 37,395 35,864
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Net income 32,230 34,326
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Net income is attributable to:
Preferred shareholders 6,852 6,889
Common shareholders 20,541 22,050
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Total shareholders 27,393 28,939
Participating policyholders 4,837 5,387
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32,230 34,326
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Earnings per share
(in dollars - note 2) $5.95 $6.38
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Notes:
1. These financial statements have been prepared in accordance with
generally accepted accounting principles, including the accounting
requirements of the Superintendent of Financial Institutions Canada.
Certain 1995 amounts have been reclassified to conform with the
financial statement presentation adopted in 1996.
2. Fully diluted earnings per share have been calculated as $4.71
and $5.97 for the nine month periods ended September 30, 1996 and
1995, respectively.
CONTACT: Crown Life Insurance Co., Regina Alan M. Rowe, 306/751-6770 Don Savaria, 306/751-6153 800/827-6965 |
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