SCOR U.S. reports 1995 first quarter results.NEW YORK--(BUSINESS WIRE)--May 2, 1995--SCOR U.S. Corp. (NYSE NYSE See: New York Stock Exchange :SUR Sur, Lebanon: see Tyre. ) reported today that net income for the three months ended March 31, 1995 was $4.4 million, or $.24 per share, including after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. realized investment losses of $73,000 or $.01 per share. These results also include an extraordinary gain of $517,000, net of tax, or $.03 per share, resulting from the company's open market repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of $5.9 million in principal amount of its convertible subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before . In the year earlier period, catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). events resulted in the company posting a net loss of $14.4 million, or $.79 per share, including after-tax realized investment gains of $210,000, or $.01 per share. Excluding realized investment losses, income from operations for the three months ended March 31, 1995 was $3.9 million, or $.22 per share, compared with a loss of $14.6 million, or $.80 per share, excluding realized investment gains, for the first quarter of 1994. During the 1995 first quarter, the company experienced $1.7 million, or $.06 per share after-tax, of net favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. development on pre- pre- word element [L.], before (in time or space). pre- pref. 1. Earlier; before; prior to: prenatal. 2. 1995 property catastrophe events. Results for the 1994 period include pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charges of $37.4 million, or $1.34 per share after-tax, for catastrophe events, principally the Northridge earthquake The Northridge earthquake occurred on January 17, 1994 at 4:31 AM Pacific Standard Time in the city of Los Angeles, California. The earthquake had a "strong" moment magnitude of 6. . Net premiums written for the 1995 first quarter were $73.5 million, compared with $72.8 million one year earlier, reflecting the company's ability to maintain its market share while restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). its treaty portfolio to achieve a more balanced property-casualty book. The company's statutory combined ratio was 104.0% for the first quarter of 1995, compared with 144.1% one year earlier. Net investment income was $11.0 million for the 1995 first quarter, compared with $10.0 million in the first quarter of 1994. Net cash provided by operating activities for the first quarter of 1995 was $7.7 million, compared with net cash used in operating activities of $279,000 for the three months ended March 31, 1994. At March 31, 1995, the statutory capital and surplus of the company's operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. was $243.8 million, compared with $243.4 million at the previous year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . SCOR SCOR Scientific Committee on Oceanic Research SCOR Supply Chain Operations Reference model SCOR Small Corporate Offering Registration SCOR Specialized Center of Research (White Plains, NY) SCOR Second Cousin Once Removed U.S. Corp., a holding company, provides property and casualty insurance 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. in the treaty and facultative facultative /fac·ul·ta·tive/ (fak´ul-ta?tiv) not obligatory; pertaining to the ability to adjust to particular circumstances or to assume a particular role. fac·ul·ta·tive adj. 1. markets through its operating subsidiaries. All of SCOR U.S. Corp.'s operating insurance and reinsurance subsidiaries are rated "A" (Excellent) by A.M. Best Company. -0-
SCOR U.S. Corp.
Financial Highlights (Unaudited)
(dollars in thousands except per share data)
Three Months Ended
March 31,
1995 1994
Operations Gross premiums written $ 92,671 $ 94,743 Net premiums written 73,530 72,813 Net premiums earned 70,597 62,685 Net investment income 10,978 9,998 Revenues 81,463 73,006 Income (loss) from operations excluding net realized investment gains (losses) $ 3,949 $(14,628) After-tax realized investment gains (losses) (73) 210 Extraordinary gain on redemption of debentures, net of tax 517 -0- Net income (loss) $ 4,393 $(14,418) Per Share Data - Primary Average common shares outstanding 18,164 18,221 Income (loss) from operations excluding net realized investment gains (losses) $ 0.22 $ (.80) After-tax realized investment gains (losses) (0.01) 0.01 Extraordinary gain on redemption of debentures, net of tax 0.03 -0- Net income (loss) $ 0.24 $ (0.79) GAAP Ratios Loss ratio 66.7% 112.5% Expense ratio 38.9% 39.4% Combined ratio 105.6% 151.9% Statutory Ratios Loss ratio 67.1% 110.5% Expense ratio 36.9% 33.6% Combined ratio 104.0% 144.1% Net premiums written to surplus (1) 1.2:1 1.2:1 Loss reserves to capital and surplus (2) 1.6:1 1.6:1
March 31, 1995 Dec. 31, 1994
(Unaudited)
Financial Position
Cash and investments $ 707,659 $ 677,556
Total assets 1,167,574 1,143,715
Combined statutory capital
and surplus of operating
subsidiaries (3) 243,761 243,416
GAAP stockholders' equity 256,341 239,395
Book value per share $ 14.11 $ 13.18
(1) Annualized net premiums written for the period divided by ending capital and surplus. (2) Statutory basis. (3) Estimated at March 31, 1995
SCOR U.S. Corp.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)
Three Months Ended
March 31, March 31,
1995 1994
Revenues
Premiums written, gross $ 92,671 $ 94,743
Premiums ceded (19,141) (21,930)
Premiums written, net 73,530 72,813
Change in unearned premiums (2,933) (10,128)
Net premiums earned 70,597 62,685
Net investment income 10,978 9,998
Net realized investment gains
(losses) (112) 323
81,463 73,006
Losses and expenses
Losses and loss
expenses, gross 61,323 122,513
Reinsurance recoverable (14,214) (52,006)
Losses and loss expenses, net 47,109 70,507
Commissions, net 19,420 17,519
Other underwriting and
administration expenses 7,321 6,807
Other expenses 699 413
Interest expense 2,404 2,324
76,953 97,570
Income (loss) from
operations before
Federal income taxes
(benefit) 4,510 (24,564)
Federal income taxes (benefit) 634 (10,146)
Income (loss) from operations 3,876 (14,418)
Extraordinary gain on
redemption of debentures,
net of tax 517 -0-
Net income (loss) $ 4,393 (14,418)
Per share data Primary Average common and common equivalent shares outstanding 18,164 18,221 Income (loss) from operations $ 0.21 $ (0.79) Extraordinary item 0.03 -0- Net income (loss) $ 0.24 $ (0.79) Fully diluted Average common and common equivalent shares outstanding 18,164 18,221 Income (loss) from operations $ 0.21 $ (0.79) Extraordinary item .03 -0- Net income (loss) $ 0.24 $ (0.79)
SCOR U.S. Corp.
Consolidated Balance Sheets
(in thousands)
March 31, Dec. 31,
1995 1994
(unaudited)
Assets
Investments:
Fixed maturities:
Available for sale, at fair value
(amortized cost: $603,339 and
$596,791) $ 590,352 $ 563,656
Held to maturity, at amortized cost
(fair value: $23,584 and $22,274) 23,713 22,871
Equity securities, at fair value
(cost: $259 and $1,897) 494 1,738
Short-term investments, at cost 83,620 83,303
Other long-term investments 1,395 1,225
699,574 672,793
Cash 8,085 4,763
Accrued investment income 10,473 10,339
Premiums receivable 87,153 72,018
Reinsurance recoverable on paid losses 13,465 23,755
Reinsurance recoverable on unpaid losses 222,966 222,672
Prepaid reinsurance premiums 17,066 19,307
Deferred policy acquisition costs 23,393 22,844
Deferred Federal income tax benefits 29,762 34,818
Investment in affiliates 11,783 11,532
Other assets 43,854 48,874
$ 1,167,574 $ 1,143,715
Liabilities
Losses and loss expenses $ 614,315 $ 604,787
Unearned premiums 110,774 110,082
Funds held under reinsurance treaties 19,425 20,758
Reinsurance balances payable 34,355 43,685
Convertible subordinated debentures 76,450 82,350
Notes payable 25,000 20,000
Commercial paper 20,004 11,310
Other liabilities 10,910 11,348
911,233 904,320
Stockholders Equity
Preferred stock, no par value, 5,000
shares authorized; no shares issued
Common stock, $.30 par value,
50,000 shares authorized; 18,356
and 18,356 shares issued 5,507 5,507
Additional paid-in capital 114,563 114,556
Unrealized depreciation of investments,
net of deferred tax effect (8,288) (21,640)
Foreign currency translation adjustment (305) (414)
Retained earnings 146,638 143,153
Treasury stock, at cost (193 and 192
shares) (1,774) (1,767)
------- -------
256,341 239,395
------------- -----------
$ 1,167,574 $ 1,143,715
SCOR U.S. Corp.
Consolidated Statements of Cash Flows
(Unaudited) (in thousands)
Three months ended
March 31,
1995 1994
Cash flows from operating activities Net income (loss) $ 4,393 $(14,418) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized investment (gains) losses 112 (323) Changes in assets and liabilities: Accrued investment income (134) 56 Premium balances, net (24,465) 3,218 Prepaid reinsurance premiums 2,241 1,682 Reinsurance recoverable on paid losses 10,290 (13,392) Deferred policy acquisition costs (549) (1,418) Losses and loss expenses 9,528 53,167 Unearned premiums 692 8,446 Reinsurance recoverable on unpaid losses (294) (8,600) Funds held under reinsurance treaties (1,333) (16,521) Federal income taxes 912 (11,946) Other 6,317 (230) Net cash provided by (used in) operating activities 7,710 (279) Cash flows from investing activities Sales, maturities or redemptions of fixed maturities 19,803 39,926 Sales of equity securities 1,215 2,371 Net sales of short-term investments 801 44,254 Investments in fixed maturities (28,706) (78,803) Investments in equity securities -0- (1,729) Other (306) (1,172) Net cash provided by (used in) investing activities (7,193) 4,847 Cash flows from financing activities Dividends paid (908) (1,633) Redemption of convertible subordinated debentures (9,800) -0- Proceeds of notes payable 5,000 -0- Proceeds from issuance of commercial paper-net 8,468 21 Proceeds from stock options exercised 7 18 Other 38 93 Net cash provided by (used in) financing activities 2,805 (1,501) Net increase in cash 3,322 3,067 Cash at beginning of period 4,763 17,096 Cash at end of period $8,085 $ 20,163 CONTACT: SCOR U.S. Corp., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Howard Howard, English noble family. Landowners in Norfolk from the 13th cent., the Howards obtained the duchy of Norfolk through the marriage of Sir Robert Howard to Margaret Mowbray, daughter of Thomas Mowbray, 1st duke of Norfolk. B. Fischer Fi·scher , Hans 1881-1945. German chemist known for his research on the components of blood. He won a 1930 Nobel Prize for his work on the synthesis of hemin. , 212/978-8294 |
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