SCOR U.S. reports 1995 second quarter and six month results.NEW YORK--(BUSINESS WIRE)--Aug. 1, 1995--SCOR U.S. Corp. (NYSE NYSE See: New York Stock Exchange :SUR Sur, Lebanon: see Tyre. ) reported today that income from operations for the three months ended June June: see month. 30, 1995, excluding net realized investment gains, was $4.3 million, or $.24 per share. This compares with $335,000, or $.02 per share, for the second quarter of 1994. During the 1995 second quarter, the company experienced $5.5 million, or $.20 per share 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. , of net adverse development on pre- pre- word element [L.], before (in time or space). pre- pref. 1. Earlier; before; prior to: prenatal. 2. 1995 property catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). events, including $4.2 million of charges related to the 1994 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 income for the three months ended June 30, 1995 was $4.8 million, or $.27 per share, including after-tax realized investment gains of $458,000, or $.03 per share. These results also include an extraordinary gain of $35,000, or less than $.01 per share, resulting from the company's ongoing program to 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. 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 open market. In the year earlier period, the company reported net income of $603,000, or $.03 per share, including after-tax realized investment gains of $268,000, or $.01 per share. For the 1995 six month period, exluding net realized investment gains, the company reported income from operations of $8.3 million, or $.46 per share, compared with an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $14.3 million, or $.79 per share, for the six month period of 1994. The company's 1995 year to date results include pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charges for pre-1995 catastrophe events of $4.6 million, or $.16 per share after tax, of which $3.4 million relates to the Northridge earthquake. Results for the 1994 six month period include pretax charges of $36.6 million, or $1.31 per share on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. , for catastrophe events, principally the Northridge earthquake. Net income for the 1995 six month period was $9.2 million, or $.51 per share, including after-tax realized investment gains of $385,000, or $.02 per share, and an extraordinary gain of $552,000, or $.03 per share, resulting from the company's repurchase of its debentures. Comparatively, the Company reported a net loss of $13.8 million, or $.76 per share, in the year earlier period, including after-tax realized investment gains of $478,000, or $.03 per share. In the 1995 second quarter, net premiums written were $53.5 million, compared with $56.1 million for the 1994 second quarter. For the 1995 six month period, net premiums written were $127.0 million, compared with $128.9 million for the corresponding 1994 period. The company's 1995 second quarter and six month statutory combined ratios were 108.2% and 105.6%, respectively, compared with 114.0% and 130.1%, respectively, for the second quarter and six months of 1994. Net investment income for the 1995 six month period increased to $21.1 million from $20.2 million in the corresponding 1994 period. Net cash used in operating activities for the six months ended June 30, 1995 was $1.7 million, compared with cash used in operations of $15.5 million for the corresponding 1994 period. At June 30, 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. stood at an estimated $251.9 million. 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
June 30,
1995 1994
Operations Gross premiums written $ 70,316 $ 69,198 Net premiums written 53,495 56,089 Net premiums earned 58,207 54,983 Net investment income 10,094 10,208 Revenues 69,005 65,604 Income (loss) from operations excluding net realized investment gains $ 4,341 $ 335 After-tax realized investment gains 458 268 Extraordinary gain on redemption of debentures, net of tax 35 -0- Net income (loss) $ 4,834 $ 603 Per Share Data - Primary Average common shares outstanding 18,196 18,191 Income (loss) from operations excluding net realized investment gains $ 0.24 $ 0.02 After-tax realized investment gains 0.03 0.01 Extraordinary gain on redemption of debentures, net of tax -0- -0- Net income (loss) $ 0.27 $ 0.03 GAAP Ratios Loss ratio 66.0% 78.2% Expense ratio 38.3% 38.9% Combined ratio 104.3% 117.1% Statutory Ratios Loss ratio 66.2% 78.7% Expense ratio 42.0% 35.3% Combined ratio 108.2% 114.0% Net premiums written to surplus (1) .85:1 .93:1 Loss reserves to capital and surplus (2) 1.7:1 1.8:1
Six Months Ended
June 30,
1995 1994
Operations Gross premiums written $ 162,987 $ 163,941 Net premiums written 127,025 128,902 Net premiums earned 128,804 117,668 Net investment income 21,072 20,206 Revenues 150,468 138,610 Income (loss) from operations excluding net realized investment gains $ 8,290 $(14,293) After-tax realized investment gains 385 478 Extraordinary gain on redemption of debentures, net of tax 552 -0- Net income (loss) $ 9,227 $(13,815) Per Share Data - Primary Average common shares outstanding 18,196 18,125 Income (loss) from operations excluding net realized investment gains $ 0.46 $ (0.79) After-tax realized investment gains 0.02 0.03 Extraordinary gain on redemption of debentures, net of tax 0.03 -0- Net income (loss) $ 0.51 $ (0.76) GAAP Ratios Loss ratio 66.4% 96.5% Expense ratio 38.6% 39.2% Combined ratio 105.0% 135.7% Statutory Ratios Loss ratio 66.7% 95.8% Expense ratio 38.9% 34.3% Combined ratio 105.6% 130.1% Net premiums written to surplus (1) 1.0:1 1.1:1 Loss reserves to capital and surplus (2) 1.7:1 1.8:1
June 30, 1995 Dec. 31, 1994
(Unaudited)
Financial Position
Cash and investments $ 720,939 $ 677,556
Total assets 1,187,628 1,143,715
Combined statutory capital
and surplus of operating
subsidiaries (3) 251,896 243,416
GAAP stockholders' equity 272,728 239,395
Book value per share $ 15.02 $ 13.18
(1) Annualized net premiums written for the period divided by ending capital and surplus. (2) Statutory basis. (3) Estimated at June 30, 1995
SCOR U.S. Corp.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
Revenues
Premiums written, gross $ 70,316 $ 69,198 $162,987 $163,941
Premiums ceded (16,821) (13,109) (35,962) (35,039)
Premiums written, net 53,495 56,089 127,025 128,902
Change in unearned premiums 4,712 (1,106) 1,779 (11,234)
Net premiums earned 58,207 54,983 128,804 117,668
Net investment income 10,094 10,208 21,072 20,206
Net realized investment gains 704 413 592 736
69,005 65,604 150,468 138,610
Losses and expenses
Losses and loss
expenses, gross 65,552 46,168 126,875 168,681
Reinsurance recoverable (27,161) (3,177) (41,375) (55,183)
Losses and loss expenses, net 38,391 42,991 85,500 113,498
Commissions, net 17,131 14,356 36,551 31,875
Other underwriting and
administration expenses 5,846 5,980 13,167 12,787
Other expenses (675) 1,062 24 1,475
Interest expense 1,906 2,204 4,310 4,528
62,599 66,593 139,552 164,163
Income (loss) from
operations before
Federal income taxes
(benefit) 6,406 (989) 10,916 (25,553)
Federal income taxes (benefit) 1,607 (1,592) 2,241 (11,738)
Income (loss) from operations 4,799 603 8,675 (13,815)
Extraordinary gain on
redemption of debentures,
net of tax 35 -0- 552 -0-
Net income (loss) $ 4,834 $ 603 $ 9,227 $(13,815)
Per share data Primary Average common and common equivalent shares outstanding 18,196 18,191 18,196 18,125 Income (loss) from operations $ 0.27 $ 0.03 $ 0.48 $ (0.76) Extraordinary item -0- -0- 0.03 -0- Net income (loss) $ 0.27 $ 0.03 $ 0.51 $ (0.76) Fully diluted Average common and common equivalent shares outstanding 21,234 18,191 21,219 18,125 Income (loss) from operations $ 0.26 $ 0.03 $ 0.47 $ (0.76) Extraordinary item -0- -0- 0.03 -0- Net income (loss) $ 0.26 $ 0.03 0.50 $ (0.76)
SCOR U.S. Corp.
Consolidated Balance Sheets
(in thousands)
June 30, Dec. 31,
1995 1994
(unaudited)
Assets
Investments:
Fixed maturities:
Available for sale, at fair value
(amortized cost: $557,769 and
$596,791) $ 563,157 $ 563,656
Held to maturity, at amortized cost
(fair value: $26,515 and $22,274) 25,793 22,871
Equity securities, at fair value
(cost: $263 and $1,897) 523 1,738
Short-term investments, at cost 118,530 83,303
Other long-term investments 1,424 1,225
709,427 672,793
Cash 11,512 4,763
Accrued investment income 10,146 10,339
Premiums receivable 90,728 72,018
Reinsurance recoverable on paid losses 11,821 23,755
Reinsurance recoverable on unpaid losses 237,060 222,672
Prepaid reinsurance premiums 11,139 19,307
Deferred policy acquisition costs 22,728 22,844
Deferred Federal income tax benefits 24,423 34,818
Investment in affiliates 12,555 11,532
Other assets 46,089 48,874
$ 1,187,628 $ 1,143,715
Liabilities
Losses and loss expenses $ 633,315 $ 604,787
Unearned premiums 100,134 110,082
Funds held under reinsurance treaties 17,857 20,758
Reinsurance balances payable 29,863 43,685
Convertible subordinated debentures 75,950 82,350
Notes payable 25,000 20,000
Commercial paper 20,321 11,310
Other liabilities 12,460 11,348
914,900 904,320
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 appreciation (depreciation) of
investments, net of deferred tax effect 3,671 (21,640)
Foreign currency translation adjustment 197 (414)
Retained earnings 150,564 143,153
Treasury stock, at cost (193 and 192
shares) (1,774) (1,767)
------- -------
272,728 239,395
------------- -----------
$ 1,187,628 $ 1,143,715
SCOR U.S. Corp.
Consolidated Statements of Cash Flows
(Unaudited) (in thousands)
Three months ended
June 30,
1995 1994
Cash flows from operating activities Net income (loss) $ 4,834 $ 603 Adjustments to reconcile net income (loss) to net cash used in operating activities: Estraordinary gain on redemption of debentures (35) -0- Realized investment gains (704) (413) Changes in assets and liabilities: Accrued investment income 327 (162) Premium balances, net (8,067) (23,384) Prepaid reinsurance premiums 5,927 2,295 Reinsurance recoverable on paid losses 1,644 (5,669) Deferred policy acquisition costs 665 (51) Losses and loss expenses 19,000 7,453 Unearned premiums (10,640) (1,189) Reinsurance recoverable on unpaid losses (14,094) 6,375 Funds held under reinsurance treaties (1,568) 123 Federal income taxes (1,392) (1,592) Other (3,981) 431 Net cash used in operating activities 8,084 (15,180) Cash flows from investing activities: Sales, maturities or redemptions of fixed maturities 75,637 98,862 Sales of equity securities -0- 2,145 Net sales (purchases) of short-term investments (33,836) (7,520) Investments in fixed maturities (31,085) (80,865) Investments in equity securities -0- (486) Other (189) (1,808) Net cash provided by investing activities 10,527 10,328 Cash flows from financing activities: Dividends paid (908) (1,632) Redemption of convertible subordinated debentures (445) -0- Proceeds of notes payable -0- -0- Proceeds from issuance of commercial paper-net 466 6 Proceeds from stock options exercised -0- 27 Other 1,871 282 Net cash provided by (used in) financing activities 984 (1,317) Net increase (decrease) in cash 3,427 (6,169) Cash at beginning of period 8,085 20,163 Cash at end of period $ 11,512 $ 13,994 Six months ended June 30, 1995 1994 Cash flows from operating activities Net income (loss) $ 9,227 $(13,815) Adjustments to reconcile net income (loss) to net cash used in operating activities: Extraordinary gain on redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of debentures (552) -0- Realized investment gains (592) (736) Changes in assets and liabilities: Accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. investment income 193 (106) Premium balances, net (32,532) (20,166) Prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. reinsurancepremiums 8,168 3,977 Reinsurance recoverable on paid losses 11,934 (19,061) Deferred policy acquisition costs 116 (1,469) Losses and loss expenses 28,528 60,620 Unearned premiums (9,948) 7,257 Reinsurance recoverable on unpaid losses (14,388) (2,225) Funds held under reinsurance treaties (2,901) (16,398) Federal income taxes (758) (13,538) Other 1,793 201 Net cash used in operating activities (1,712) (15,459) Cash flows from investing activities: Sales, maturities or redemptions of fixed maturities 95,440 138,788 Sales of equity securities 1,215 4,516 Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight (purchases) of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments (33,035) 36,734 Investments in fixed maturities (59,791) (159,668) Investments in equity securities -0- (2,215) Other (495) (2,980) Net cash provided by investing activities 3,334 15,175 Cash flows from financing activities Dividends paid (1,816) (3,265) Redemption of convertible subordinated debentures (8,907) -0- Proceeds of notes payable 5,000 -0- Proceeds from issuance of commercial paper-net paper-net - snail mail 8,934 27 Proceeds from stock options exercised 7 45 Other 1,909 375 Net cash provided by (used in) financing activities 5,127 (2,818) Net increase (decrease) in cash 6,749 (3,102) Cash at beginning of period 4,763 17,096 Cash at end of period $11,512 $ 13,994 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 Jeffrey D. Cropsey Cropsey is the name of:
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