Printer Friendly

NWNL COMPANIES' NET INCOME RISES 43 PERCENT IN SECOND QUARTER; FILING FOR COMMON STOCK OFFERING ANNOUNCED

 NWNL COMPANIES' NET INCOME RISES 43 PERCENT IN SECOND QUARTER;
 FILING FOR COMMON STOCK OFFERING ANNOUNCED
 MINNEAPOLIS, July 31 /PRNewswire/ -- The NWNL Companies (NYSE: NWN) reported a 43 percent gain in second quarter net income over the same quarter last year and announced that today it is filing a registration statement with the Securities and Exchange Commission for an offering of common stock.
 Net income for the second quarter of 1992 totaled $13.4 million, or 92 cents per common share on a primary basis (87 cents per share fully diluted). In 1991, second quarter net income was $9.4 million, or 71 cents per common share primary (67 cents per share fully diluted).
 Income from continuing operations, excluding realized gains and losses and a one-time extraordinary charge of $1.3 million, was $20.1 million in the second quarter, up from $19.0 million during the same period in 1991.
 Net income for the first six months of 1992 rose to $25.2 million compared with net income of $22.2 million for the same period of 1991.
 Net income per common share on a primary basis for the six months ended June 30, 1992, was $1.71, the same as last year. On a fully diluted basis, net income per share for the first half of 1992 was $1.62, up two cents per share over the first half of 1991.
 NWNL President and Chief Executive Officer John G. Turner said, "Over the last two years, we have been talking about our aggressive actions to improve asset quality, narrow our business focus, and reduce expenses. Our financial performance is now beginning to reflect our progress toward those goals even though some of our actions have involved taking some significant charges this year. I am very pleased with our results and our progress."
 The current status of the three key initiatives is:
 -- Asset quality: The economy's modest recovery and NWNL's actions to improve asset quality have resulted in reduced write-offs and allowances for problem investments. Realized investment losses for the second quarter and first half of 1992 decreased compared with the same periods of 1991.
 As of June 30, 1992, the net carrying value of NWNL's problem investments was $339 million. Problem investments were $335 million at the end of 1991 and $404 million on June 30, 1991.
 The company expects the level of problem investments and realized investment losses to vary from quarter to quarter in an economic environment where the recovery is spotty and sluggish.
 -- Narrowing focus: In the first quarter of this year, NWNL sold Chartwell Reinsurance Co., its property/casualty reinsurance subsidiary, in order to focus on its life and health insurance and annuity businesses. Proceeds from the sale were used to prepay a $47 million, 11 percent mortgage on two of its home office buildings. This reduction of long-term debt by $47 million, or 25 percent, will reduce interest costs in future periods.
 A mortgage prepayment penalty incurred on this transaction resulted in a second quarter extraordinary charge of $1.3 million after tax, or 10 cents per share on a primary basis.
 -- Expense reduction: NWNL has begun to implement actions that will result in more than $34 million of annualized cost savings. This year's financial results are beginning to reflect the benefits of this initiative, and its impact will become more significant in 1993 and later years.
 In the second quarter, there was a $700,000 charge after tax for severance and other costs related to expense reduction. These and similar restructuring charges reduced net income for the first six months of 1992 by $3.3 million, or 27 cents per share on a primary basis.
 Turning to the performance of NWNL's business operations, Turner said, "Operating earnings in all three units in the individual insurance segment were strong in the second quarter, and employee benefits and life and health reinsurance also turned in very solid results. The pension segment incurred a small loss, which we anticipated as our Guaranteed Investment Contract business runs off the books. Overall, I am very pleased with our operating earnings."
 For the first six months of 1992, sales of individual life insurance decreased 29 percent and annuities decreased 44 percent below the levels of the same period in 1991. Reduced annuity sales in some units are in line with expectations and reduced sales of interest-sensitive products generally are reflective of the low interest rate environment. Sales of variable universal life insurance and variable annuities continued to increase during the second quarter of 1992.
 New premium and premium equivalents in the employee benefits segment through the first half of 1992 were up 27 percent compared to last year's six-month total. Sales in life and health reinsurance were slightly below last year's total.
 Insurance in force increased to $104.8 billion at June 30, 1992, up from $103.8 billion at year-end 1991. Assets as of June 30, 1992 stood at $8.8 billion, the same as the end of 1991.
 Today NWNL is filing a registration statement with the Securities and Exchange Commission for an offering of 1,500,000 shares of common stock, with an option for the underwriters to purchase 225,000 additional shares to cover overallotments.
 The underwriters of the offering are Goldman, Sachs & Co., Donaldson Lufkin Jenrette Securities Corp., and Dain Bosworth Incorporated.
 The closing price of NWNL common stock on July 30 was $43 per share. As of June 30, 1992, the company had 11,950,749 shares of common stock outstanding.
 A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
 The NWNL Companies is a Minneapolis-based holding company specializing in the life and health insurance and annuity businesses.
 THE NWNL COMPANIES, INC.
 FINANCIAL HIGHLIGHTS
 (Unaudited)
 (In thousands, except per share data)
 Three Months Ended
 6/30/92 6/30/91
 Premium revenues $140,743 $137,294
 Total revenue 336,668 334,443
 Income from continuing operations:
 Income excluding realized
 investment gains (losses)(a) 20,106 18,958
 Realized investment gains
 (losses)(after tax)(a) (5,460) (7,123)
 Income from continuing operations
 before extraordinary charge 14,646 11,835
 Loss from discontinued
 operations (net of tax) -- (2,479)
 Extraordinary charge on early
 extinguishment of debt (net of tax) (1,251) --
 Net income $13,395 $9,356
 Per common share:
 Primary:
 Income from continuing operations:
 Income excluding realized
 investement gains (losses)(a) $1.47 $1.50
 Realized investment gains
 (losses)(after tax)(a) (0.45) (0.59)
 Income from continuing
 operations before extraordinary charge 1.02 0.91
 Loss from discontinued
 operations (net of tax) -- (0.20)
 Extraordinary charge on early
 extinguishment of debt (net of tax) (0.10) --
 Net income $0.92 $0.71
 Fully diluted:
 Income from continuing operations:
 Income excluding realized
 investment gains (losses)(a) $1.37 $1.38
 Realized investment gains
 (losses)(after tax)(a) (0.41) (0.53)
 Income from continuing operations
 before extraordinary charge 0.96 0.85
 Loss from discontinued
 operations (net of tax) -- (0.18)
 Extraordinary charge on early
 extinguishment of debt (net of tax) (0.09) --
 Net income $0.87 $0.67
 Net income available to common shareholders $11,082 $8,615
 Average common shares outstanding:
 Primary 12,074 12,144
 Fully diluted 13,433 13,482
 New premiums:
 Individual life - annual premium $6,913 $10,126
 Individual life - lump sum deposits 8,296 12,273
 Individual annuity - annual premium 19,430 30,774
 Individual annuity - single premium
 and long term deposits 49,460 100,098
 Group annuity 3,980 54,784
 Employee benefits - life 3,612 7,308
 Employee benefits - health 7,785 15,798
 Employee benefits - premium equivalents 25,590 48,726
 Reinsurance 5,153 7,216
 Total $130,219 $287,103
 Six Months Ended
 6/30/92 6/30/91
 Premium revenues $291,041 $271,389
 Total revenue 680,726 665,332
 Income from continuing operations:
 Income excluding realized
 investment gains (losses)(a) 37,216 35,602
 Realized investment gains
 (losses)(after tax)(a) (10,757) (12,320)
 Income from continuing operations
 before extraordinary charge 26,459 23,282
 Loss from discontinued
 operations (net of tax) -- (1,074)
 Extraordinary charge on early
 extinguishment of debt (net of tax) (1,251) --
 Net income $25,208 $22,208
 Per common share:
 Primary:
 Income from continuing operations:
 Income excluding realized
 investement gains (losses)(a) $2.71 $2.81
 Realized investment gains
 (losses) (after tax)(a) (0.90) (1.01)
 Income from continuing
 operations before extraordinary charge 1.81 1.80
 Loss from discontinued
 operations (net of tax) -- (0.09)
 Extraordinary charge on early
 extinguishment of debt (net of tax) (0.10) --
 Net income $1.71 $1.71
 Fully diluted:
 Income from continuing operations:
 Income excluding realized
 investment gains (losses)(a) $2.51 $2.59
 Realized investment gains
 (losses)(after tax)(a) (0.80) (0.91)
 Income from continuing operations
 before extraordinary charge 1.71 1.68
 Loss from discontinued
 operations (net of tax) -- (0.08)
 Extraordinary charge on early
 extinguishment of debt (net of tax) (0.09) --
 Net income $1.62 $1.60
 Net income available to common shareholders $20,582 $20,759
 Average common shares outstanding:
 Primary 12,027 12,172
 Fully diluted 13,421 13,510
 New premiums:
 Individual life - annual premium $13,968 $20,230
 Individual life - lump sum deposits 17,366 23,612
 Individual annuity - annual premium 47,759 61,793
 Individual annuity - single premium
 and long term deposits 104,288 207,940
 Group annuity 10,403 226,803
 Employee benefits - life 13,609 13,530
 Employee benefits - health 24,139 26,156
 Employee benefits - premium equivalents 108,212 75,627
 Reinsurance 15,084 16,137
 Total $354,828 $671,828
 (a) Income excluding realized investment gains (losses) and after tax realized investment gains (losses) are not presented on the statement of operations, however they are shown here for analysis purposes.
 -0- 7/31/92
 /CONTACT: Jan Pedersen of NWNL, 612-372-5623/
 (NWN) CO: The NWNL Companies, Inc. ST: Minnesota IN: INS SU: ERN


AL -- MN001 -- 5454 07/31/92 09:06 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 31, 1992
Words:1749
Previous Article:BOONE PICKENS, ASA JOHAL AND SIDNEY TASSIN JOIN LESSONWARE TEAM
Next Article:MGIC ANNOUNCES EXECUTIVE MANAGEMENT PROMOTIONS
Topics:


Related Articles
NWNL COMPANIES STRENGTHENS BALANCE SHEET IN THIRD QUARTER AND OPERATIONS REMAIN STRONG; NET INCOME IS $11.9 MILLION
NWNL COMPANIES 1991 NET INCOME IS $47 MILLION; ASSET QUALITY AND LIQUIDITY IMPROVEMENTS TOP YEAR'S ACHIEVEMENTS
CONTINUING OPERATIONS OF NWNL COMPANIES POST INCREASE IN FIRST QUARTER INCOME; RESTRUCTURING CHARGES TAKEN
NWNL COMPANIES REPORTS INCREASES IN NET AND OPERATING INCOME; FINANCIAL PERFORMANCE REFLECTS KEY INITIATIVES
NWNL COMPANIES' ANNUAL AND QUARTERLY NET INCOME HIT HIGHEST LEVELS SINCE 1989 DEMUTUALIZATION
NWNL REPORTS RECORD NET INCOME BEFORE ACCOUNTING CHARGE
NWNL REPORTS RECORD NET INCOME IN SECOND QUARTER
NWNL REPORTS PRETAX OPERATING EARNINGS INCREASE OF 24 PERCENT IN THE THIRD QUARTER
NWNL SETS NEW EARNINGS RECORDS IN FIRST QUARTER
NWNL REPORTS RECORD 1994 EARNINGS Fourth Quarter and Full-Year Highlights

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters