SOUTHWESTERN LIFE CORP. ANNOUNCES FINANCIAL RESULTS; COMMENTS ON RECENT MARKET ACTIVITY.DALLAS--(BUSINESS WIRE)--Nov. 8, 1994--Southwestern Life Corporation (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. : SLC (Subscriber Loop Carrier) Lucent's designation for its digital loop carrier (DLC) products. See digital loop carrier. See also 386SLC. ) today announced financial results for the quarter and nine months ended Sept. 30, 1994. For the quarter, the Company reported a net loss, after preferred dividend preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) requirements, of $3.6 million, or 8 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . This compares to net earnings, after preferred dividend requirements, of $118.0 million, or $2.46 per share, in the third quarter of 1993. Results for the third quarter of 1993 included a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain of $197.4 million from the sale of the Company's investment in Bankers Life Holding Corp. (BLHC), $27.8 million of gains from the sale of the Company's investment in CCP (Certified Computer Professional) The award for successful completion of a comprehensive examination on computers offered by the ICCP. See ICCP and certification. . 1. (language) CCP - Concurrent Constraint Programming. 2. Insurance, Inc., and nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. consolidation and reorganization expenses totaling $23.9 million. Excluding preferred dividend requirements totaling $3.5 million, the Company reported a slight net loss of $145,000 in the third quarter of 1994 compared to operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of $125.7 million in the third quarter of 1993. Results of operations, before nonrecurring credits and charges, equity in the earnings of BLHC, realized investment gains and losses, interest expense on long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and provisions for income taxes improved to $8.9 million in the third quarter of 1994 versus a loss of $1.7 million in the three months of the prior year. Total revenues were $167.0 million in the third quarter of 1994 versus total revenues of $399.2 million in the third quarter of 1993. As a result of reported financial results and unrealized investment gains and losses, common equity declined to $100.2 million, or $2.12 per share, at the end of the third quarter of 1994 from $265.9 million, or $5.55 per share, at year end 1993. Of this decline, $115.9 million, or $2.45 per share, was attributable to the change in unrealized investment gains and losses as a result of rising interest rates. Premium income declined 14 percent in the third quarter of 1994 compared to the third quarter of 1993 primarily as a result of the termination of several large unprofitable group health cases in late 1993 and early 1994. Net investment income increased 28 percent in the third quarter of 1994 versus the third quarter of 1993 primarily due to the reflection of income from additional investments as a result of the previously announced termination of 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. agreements with a former affiliate. Improved yields on assets underlying certain indexed accumulation products also contributed to the increase in net investment income. In the third quarter of 1994, the Company took no further write-downs in its mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. portfolio. Individual life insurance and annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. benefits paid increased 7 percent during the third quarter of 1994 compared to the same period of 1993 primarily as a result of an increase in death benefits. Individual life insurance benefits can vary significantly from period to period. Individual health insurance benefits paid remained stable in the third quarter of 1994 versus the third quarter of 1993. Group and other benefits paid declined 61 percent. Continuing recent trends, expenses declined in the third quarter of 1994 versus the third quarter of 1993 as a result of the Company's expense reduction and capital 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). activities. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. declined 53 percent, interest expense declined 25 percent and preferred dividend requirements declined 55 percent versus the third quarter of 1993. SLC's new President and Chief Executive Officer James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. R. Kerber Kerber (trans. "Cerberus") is a Yugoslav/Serbian rock/hard rock band. Discography
Separately, Kerber said he believes the recent market activity in SLC stock is the result of unfounded rumors For other uses, see Rumor (disambiguation). Rumors is a farcical play by Neil Simon. At its start, several affluent couples gather in the posh suburban residence of a couple for a dinner party celebrating their tenth anniversary. and speculation regarding possible balance sheet write-downs. "This type of reckless reckless adj. in both negligence and criminal cases, careless to the point of being heedless of the consequences ("grossly" negligent). Most commonly this refers to the traffic misdemeanor "reckless driving. speculation is very damaging to both the company and its shareholders," Kerber said. "We had no write-downs whatsoever in the third quarter," Kerber said. "The Company generally reviews the recoverability of all significant balance sheet accounts at each reporting date. Based on the work done as of the end of the past quarter, with the possible exception of certain CMOs, we know of no current basis that indicates the need for future significant write-downs." For the first nine months of 1994, the Company reported a net loss, after preferred dividend requirements, of $46.1 million, or 97 cents per share. This compares to net earnings, after preferred dividend requirements, of $196.1 million, or $4.10 per share and $3.64 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, in the first nine months of 1993. Results for the first nine months of 1994 included realized investment losses totaling $41.4 million. Substantially all of these losses were attributable to previously announced write-downs of certain mortgage-backed securities. Results for the first nine months of the prior year included gains totaling $296.8 million from the sale of the Company's investment in BLHC. Total revenues in the first nine months of 1994 were $445.7 million versus $912.6 million in the first nine months of 1993. In the first nine months of 1994, individual life and annuity benefits paid increased 4 percent due to the previously announced recapture recapture n. in income tax, the requirement that the taxpayer pay the amount of tax savings from past years due to accelerated depreciation or deferred capital gains upon sale of property. (See: income tax) RECAPTURE, war. of reinsurance. Individual health insurance claims increased 6 percent in the first nine months of 1994 compared to the same period of 1993 primarily due to an increase in the benefit ratio in the Company's Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. supplement business. The increase in this ratio reflected a deficiency in premiums charged for Medicare supplement products. The Company received rate increases for some of these products in 1994 and will seek approval for additional rate increases in 1995. Group benefits paid declined 34 percent in the first nine months of 1994 compared to the same period of 1993. Southwestern Life Corporation is an insurance holding company whose insurance subsidiaries market life insurance, individual and group health insurance, annuities and fee-based administrative services. The Company's principal operating companies operating company A business that engages in transactions with outsiders. are Southwestern Life, Union Bankers Insurance and Marquette Marquette, city (1990 pop. 21,977), seat of Marquette co., N Mich., Upper Peninsula, on Lake Superior; settled 1849, inc. as a city 1871. It is a shipping center for a lumber, farm, and resort region. Chemicals, wood products, and mining machinery are manufactured. National Life in Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. ; Constitution Life, Bankers Multiple Line and Integrity National Life in Louisville Louisville (l  `ēvĭl), city (1990 pop. 269,063), seat of Jefferson co., NW Ky., at the Falls of the Ohio; inc. 1780. , Ky.; Philadelphia American Life in Houston; and Bankers Life
Insurance Company of New York New York, state, United StatesNew 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 in Woodbury. -0-
SOUTHWESTERN LIFE CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------- -----------------
1994 1993 1994 1993
---------------- -----------------
Income:
Premium income and other
considerations $103,001 $119,543 $332,706 $356,142
Net investment
income 56,027 43,896 138,031 150,082
Realized investment
gains (losses) 3,725 18,876 (41,376) 32,245
Equity in earnings
of equity investees and
limited partnerships 937 9,140 1,780 33,662
Gain on sale of
investment in Bankers
Life Holding
Corporation 197,398 296,774
Other Income 3,266 10,362 14,591 43,708
------- ------- ------- -------
166,956 399,215 445,732 912,613
------- ------- ------- -------
Benefits, expenses and costs:
Policyholder
benefits 103,711 110,748 293,980 327,301
Amortization of
deferred policy
acquisition costs
and present value
of future profits 12,277 10,968 37,672 38,720
Other operating
expenses 35,922 76,928 108,271 168,692
Amortization of
excess cost 2,397 2,401 7,193 7,204
Interest expense 11,581 15,331 36,690 51,613
------- ------- ------- -------
165,888 216,376 483,806 593,530
------- ------- ------- -------
Operating earnings
(loss) before
income tax 1,068 182,839 (38,074) 319,083
Income tax expense
(credit) 1,213 57,105 (3,298) 96,202
------- ------- -------- -------
Operating earnings
(loss) (145) 125,734 (34,776) 222,881
Cumulative effect to
January 1, 1993 of
change in method
of accounting for
post-retirement
benefits, net of
tax effect (1,812)
Extraordinary losses,
net of tax effect (1,360)
------ ------- ------- -------
Net earnings (loss) (145) 125,734 (34,776) 219,709
Less dividends on
preferred stock (3,500) (7,700) (11,325) (23,100)
------- ------- ------- -------
Net earnings (loss)
applicable to
common stock $ (3,645) $118,034 $(46,101) $196,609
------- ------- -------- -------
Weighted average
shares
outstanding 47,261,563 47,914,861 47,654,310 47,913,898
---------- ---------- ---------- ----------
Earnings (loss)
per common share:
Primary:
Operating
earnings (loss) $(.08) $2.46 $(.97) $4.17
Cumulative effect
to January 1, 1993
of change in method
of accounting for
postretirement
benefits (.04)
Extraordinary losses (.03)
---- ----- ---- ----
Net earnings (loss) $(.08) $2.46 $(.97) $4.10
---- ----- ---- ----
Fully diluted:
Operating earnings
(loss) $(.08) $2.14 $(.97) $3.69
Cumulative effect to
January 1, 1993 of change
in method of accounting
for postretirement benefits (.03)
Extraordinary losses (.02)
---- ---- ---- ----
Net earnings (loss) $(.08) $2.14 $(.97) $3.64
---- ---- ---- ----
CONTACT: Southwestern Life Corporation, Dallas Michael E. Conley, 214/954-7414 |
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