Crown Life reports significant progress in the first six months of 1996.REGINA, SK--(BUSINESS WIRE)--Aug. 7, 1996--Crown Life today released operating results for the first six months of 1996 reflecting a continuation of solid earnings and significant growth across the Company's Canadian business Canadian Business is the longest-publishing business magazine in Canada. It was founded in 1928 as The Commerce of the Nation, the organ of the Canadian Chamber of Commerce. The magazine was renamed Canadian Business in 1933. units 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. "We are making significant progress towards our objective of profitable growth," says Brian A. Johnson, President and Chief Executive Officer. "The Company's achievements are reflected in the fact that two rating agencies raised their ratings for Crown Life in the past two months." Net income for the first six months of 1996 was $20.3 million, compared with $22.0 million for the corresponding period last year. The 1995 results reflected better than normal claims experience in the shareholders' account. Earnings per share was $3.67, compared with $4.12 in the first six 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 $95.05 from $87.34 a year ago. Dividends credited to participating policyholders were $24.1 million, the same as last year. The ratio of capital resources to liabilities was 14.0 percent at June 30, 1996, compared with 13.6 percent at March 31, 1996. Business volumes in the first half of 1996 are higher than last year in all of Crown Life's Canadian operations and in the Reinsurance division. In these operations, premium revenue, premium equivalents on administrative services only business and segregated fund 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 10 percent over the first half of 1995. In June, Crown Life announced the acquisition of the group pension business of Aetna Canada. This business consists of approximately 340 group pension clients, representing over 21,000 plan participants Plan participants Employees or other beneficiaries who are eligible to receive benefits from a company's employee benefit plan. . Subject to regulatory approvals, pension plan administration and investment management for these clients will be transferred to Crown Life later this year. In July, the Company announced two new distribution agreements that complement Crown Life's existing network. Crown Life products will be distributed to credit union members through the CUMIS CUMIS Cambridge University Moving Image Studio (UK) MemberCARE Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. program and the Canadian Grey Panthers will market Panther panther, name commonly applied to the leopard, especially to a black leopard. It is also used locally to designate various other cats including the jaguar and the puma. Select out-of-country medical emergency and evacuation evacuation /evac·u·a·tion/ (e-vak?u-a´shun) 1. an emptying. 2. catharsis; emptying of the bowels. e·vac·u·a·tion n. insurance to their membership. Continuing improvement in asset quality was reflected in the lowest levels in over ten years for mortgage loans in arrears Adv. 1. in arrears - in debt; "he fell behind with his mortgage payments"; "a month behind in the rent"; "a company that has been run behindhand for years"; "in arrears with their utility bills" behindhand, behind 90 days or more. At June 30, 1996, arrears A sum of money that has not been paid or has only been paid in part at the time it is due. A person who is "in arrears" is behind in payments due and thus has outstanding debts or liabilities. in the Company's U.S. mortgage loan portfolio were US$18 million, compared with US $35 million a year ago. In the Canadian mortgage loan portfolio, arrears were $1.4 million at June 30, 1996, compared with $10.2 million at June 30,1995. During the quarter 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 (DBRS DBRS Dominion Bond Rating Service ) upgraded their rating on Crown Life's Class I Preferred Shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. to Pfd-3. In July, 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. raised their insurance financial strength rating for the Company to Baa3. "These rating changes are independent recognition of the progress that Crown Life has made over the past two years," continued Johnson. "With a strong capital base and significant business growth, Crown Life is demonstrating solid results." At their meeting on August 7, 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 September 30, 1996 to holders of record on September 9, 1996. Now in its 96th year of operation, Crown Life ranks among the top five percent 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 six months ended June 30, 1996. -0-
CONSOLIDATED STATEMENTS OF OPERATIONS
(thousands of dollars)
(unaudited)
Six months ended June 30 1996 1995
_____________________________________________________________
REVENUE
Premiums 398,707 405,859
Investment Income 235,453 264,318
Other 8,137 6,322
_____________________________________________________________
642,297 676,499
_____________________________________________________________
EXPENSES
Policy Benefits 478,360 515,505
Commissions and other selling expenses 47,988 46,699
Operating expenses 56,273 58,158
Taxes 10,472 9,962
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593,093 630,324
______________________________________________________________
INCOME FROM OPERATIONS 49,204 46,175
Interest expense on convertible subordinated debentures 4,712 -- _____________________________________________________________ Income after interest expense 44,492 46,175 Participating policyholders' dividends 24,143 24,198 _____________________________________________________________ Net income 20,349 21,977 _____________________________________________________________ _____________________________________________________________
Net income is attributable to:
Preferred shareholders 4,577 4,592
Common shareholders 12,663 14,228
____________________________________________________________
Total shareholders 17,240 18,820
Participating policyholders 3,109 3,157
____________________________________________________________
20,349 21,977
____________________________________________________________
____________________________________________________________
Earnings per share (in dollars) $3.67 $4.12
____________________________________________________________
____________________________________________________________
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 $2.99 for the six months ended June 30, 1996. CONTACT: Crown Life Insurance Company Alan M. Rowe, 306/751-6770 Marilyn Duncan-Webb, 306/751-6814 800/827-6965 |
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