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INTEGON CORPORATION REPORTS INCREASE IN NET INCOME FOR FIRST NINE MONTHS

 WINSTON-SALEM, N.C., Oct. 28 /PRNewswire/ -- Integon Corporation (NYSE: IN) announced today that net income for the nine months ended September 30, 1993 totaled $34.2 million, up 36.5 percent from last year's pro forma net income of $25.0 million. Net income per share was $1.96, an increase of 37.1 percent over $1.43 reported for the same period in 1992. The Company's operating earnings for the year-to-date period, excluding gains realized from the sale of investments, rose to a record $28.3 million, or $1.63 per share. Operating earnings, excluding the reserve releases related to the rate dispute settlement earlier in the year, were a record $24.7 million, or $1.41 per share, an increase of 13.8 percent from the pro forma operating earnings of $21.7 million, or $1.25 per share, for the 1992 year-to-date period.
 Total revenues for the nine months ended September 30, 1993 grew to a record $197.1 million, an increase of 24.5 percent from the pro forma 1992 amount of $158.3 million. The increase was due primarily to a 29.5 percent increase in net written premiums for nonstandard automobile insurance which totaled $164.7 million. Other factors contributing to the growth in total revenues included increases in investment income, revenues from premium financing and gains from the sale of investments.
 For the third quarter of 1993, Integon's net income was $10.6 million, or 61 cents per share, a decrease of 5.2 percent from the 1992 net income of $11.2 million, or 64 cents per share. Operating earnings for the third quarter, excluding gains realized from the sale of investments, were $8.2 million, or 48 cents per share, a 5.9 percent decrease compared to the record $8.8 million, or 51 cents per share in 1992. Net written premiums for nonstandard automobile insurance were $57.3 million, up 29.4 percent from the same quarter in 1992.
 Commenting on Integon's year-to-date performance, President Jim Lambie said, "We are very pleased with the premium volumes we are seeing from Georgia and Florida, two of our newest states which we entered in January and October 1992, respectively. Georgia and Florida now comprise approximately 28 percent of the Company's current business mix. As we have stated in the past, it typically takes between 18 and 24 months for new markets to become profitable for us. While Georgia business has been profitable over the last two quarters, year-to-date business in Florida has had a negative impact on earnings. However, we are satisfied with the trends thus far in Florida. Management firmly believes that the expansion strategy Integon is pursuing is the prudent course for the Company's long-term profitability. Integon has a proven track record of expanding its operations in a profitable manner."
 Lambie noted that Integon's GAAP combined ratio at 84.3 percent for the third quarter of 1993 is basically unchanged from the adjusted combined ratio of 83.9 percent (excluding the previously announced rate dispute reserve release) in the second quarter of 1993. He added that the third quarter of 1992 with a GAAP combined ratio of 77.9 percent was the best quarter in the Company's history. The Company's combined ratio continues to be one of the best in the industry and well below the average of more than 100 percent. Since the third quarter of 1991, this outstanding operating performance has caused Integon's operating earnings to grow at a compound annual rate of 43.8 percent.
 The Company also reported that during the third quarter of 1993, it purchased a total of 381,300 shares of Integon Corporation common stock under a Securities Repurchase Program authorized at the Company's May 13 meeting of its Board of Directors. Since September 30, the Company has purchased an additional 457,500 shares bringing the total number of shares purchased since May 13 to 963,800 at an average cost per share of $26.35.
 Financial results for 1992 were reported on a pro forma, or adjusted, basis to reflect the transaction in February 1992 involving the initial public offering of common stock and the concurrent retirement of debt and the related write-off of deferred loan costs associated with that debt.
 Integon Corporation, through its wholly-owned property and casualty insurance subsidiaries, specializes in the underwriting and marketing of specialty automobile insurance products to individuals. The Company, headquartered in Winston-Salem, North Carolina, markets its products through over 3,000 independent agencies located in North Carolina, Virginia, Tennessee, Georgia, Florida and Ohio.
 INTEGON CORPORATION AND SUBSIDIARIES
 STATEMENTS OF OPERATIONS
 (In Thousands, Except Per Share Data)
 (Unaudited)
 Three Months Ended Nine Months Ended
 9/30/93 9/30/92 9/30/93 9/30/92
 Direct premiums
 written $101,791 $88,686 $299,552 $256,186
 Net premiums written $63,641 $51,321 $184,006 $142,636
 Change in unearned
 premium (5,351) (4,019) (18,599) (9,826)
 Premiums earned 58,290 47,302 165,407 132,810
 Net investment income 4,953 4,221 14,309 12,200
 Net realized investment
 gains 2,318 2,467 7,575 3,840
 Other income, primarily
 financing revenue 3,243 3,233 9,852 9,286
 TOTAL REVENUES 68,804 57,223 197,143 158,136
 Loss and loss
 adjustment expenses 35,969 26,174 99,706 74,216
 Policy acquisition and
 other underwriting
 expenses 13,185 10,698 32,879 33,399
 Other expenses,
 primarily
 financing expenses 3,203 2,620 9,594 7,579
 Amortization of goodwill 396 408 1,194 1,238
 Interest expense 1,540 1,955 4,643 6,536
 TOTAL EXPENSES 54,293 41,855 148,016 122,968
 INCOME FROM OPERATIONS
 BEFORE FEDERAL INCOME
 TAXES 14,511 15,368 49,127 35,168
 Federal income taxes 4,820 4,976 15,870 11,536
 INCOME OF CONTINUING
 OPERATIONS 9,691 10,392 33,257 23,632
 Loss of businesses sold - - - (195)
 Extraordinary items 910 (A) 792 910 (A) (1,349)
 NET INCOME $10,601 $11,184 $34,167 $22,088
 Operating earnings $8,239 $8,758 $28,333 $21,092
 Net realized investment
 gains (net of taxes) 1,452 1,634 4,924 2,540
 Loss of businesses sold - - - (195)
 Extraordinary items 910 (A) 792 910 (A) (1,349)
 NET INCOME $10,601 $11,184 $34,167 $22,088
 PER SHARE:(adjusted for Dec. 1992 stock dividend)
 Operating earnings $0.48 $0.51 $1.63 $1.34
 Net realized investment
 gains 0.08 0.09 0.28 0.16
 Income of continuing
 operations 0.56 0.60 1.91 1.50
 Loss of businesses sold - - - (0.01)
 Extraordinary items 0.05 (A) 0.04 0.05 (A) (0.09)
 Net income $0.61 $0.64 $1.96 $1.40
 Weighted average shares
 outstanding 17,251 17,217 17,394 15,528
 (A) Reduction of Obligation Due Affiliate by $1,400 pretax.
 PRO FORMA RESULTS PREVIOUSLY REPORTED FOR 9/30/92
 YTD YTD
 9/30/92 9/30/92
 Total revenues $158,342 PER SHARE: (adj. for Dec. 1992
 stock div.)
 Operating earnings $1.25
 Operating earnings $21,706 Net realized investment gains 0.14
 Net realized Extraordinary items 0.04
 investment gain 2,540 Net Income $1.43
 Extraordinary items 792 Weighted average shares
 NET INCOME $25,038 outstanding 17,208
 Adjusted to reflect the February 1992 initial public offering and restructuring as having occurred at the beginning of the year.
 INTEGON CORPORATION AND SUBSIDIARIES
 STATISTICAL SUPPLEMENT
 (In Thousands, Except Ratios and Per Share Data)
 9/30/93 12/31/92(A)
 (Unaudited)
 ASSETS
 Cash and Invested Assets (B) $275,963 $242,249
 Reinsurance Receivable 150,715 145,945
 Prepaid Reinsurance Premiums 44,228 43,259
 Accrued Investment Income 4,160 4,270
 Accounts and Notes Receivable 24,755 23,392
 Premiums Due and Uncollected 52,023 37,319
 Deferred Policy Acquisition Costs 17,565 14,045
 Goodwill 57,851 60,483
 Deferred Loan Costs 1,358 1,583
 Deferred Income Taxes 10,298 9,800
 Other 1,330 1,725
 Total Assets $640,246 $584,070
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Unearned Premiums $136,131 $116,909
 Loss and LAE Payable 250,448 226,238
 Other Obligation--Affiliate 2,300 4,400
 Accrued Expenses and Other
 Liabilities 44,866 45,895
 Notes Payable 74,825 74,808
 Total Liabilities 508,570 468,250
 STOCKHOLDERS' EQUITY 131,676 115,820
 Total Liabilities and
 Stockholders' Equity $640,246 $584,070
 Book Value Per Share $7.87 $6.73
 (A) Balance sheet at December 31,1992 has been restated to reflect
 the adoption by the Company on January 1, 1993 of Statement of
 Financial Accounting Standards No. 113, "Accounting and
 Reporting for Reinsurance of Short-Duration and Long-Duration
 Contracts."
 (B) Fixed Maturities:
 Carrying Value $251,836 $226,251
 Market Value 267,269 234,004
 Three Months Ended Nine Months Ended
 (Unaudited) 9/30/93 9/30/92 9/30/93(A) 9/30/92
 GAAP (Percent)
 Loss Ratio 61.7 55.3 60.3 55.9
 Expense Ratio 22.6 22.6 19.9 25.1
 Combined Ratio 84.3 77.9 80.2 81.0
 Statutory (Percent)
 Loss Ratio 62.2 56.4 61.4 55.9
 Expense Ratio 22.3 21.9 22.1 21.2
 Combined Ratio 84.5 78.3 83.5 77.1
 (A) 1993 GAAP ratios are as follows excluding rate dispute reserve
 releases (statutory ratios are unaffected by reserve releases):
 (Percent) YTD
 Loss Ratio 60.9
 Expense Ratio 22.6
 Combined Ratio 83.5
 -0- 10/28/93
 /CONTACT: (Analysts' Contact) Gay Huntsman of Integon, 919-770-3074, or (Media Contact) Turner Coley of Turner Coley Associates, 919-760-3000, for Integon/
 (IN)


CO: Integon Corporation ST: North Carolina IN: INS SU: ERN

SB -- CH001 -- 7658 10/28/93 07:08 EDT
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