Printer Friendly

ST. PAUL COMPANIES EARNINGS STRONG DESPITE SEVERE FIRST-QUARTER CATASTROPHES

 ST. PAUL, Minn., April 26 /PRNewswire/ -- The St. Paul Companies (NYSE: SPC) reported 1993 first-quarter operating earnings of $79.9 million, or $1.77 per share, compared with first-quarter 1992 operating earnings of $92.0 million, or $2.02 per share. First-quarter catastrophe losses of $46 million pretax, including losses resulting from the March East Coast storms and the World Trade Center bombing, had a per-share after-tax impact of $0.71. That compares with pretax catastrophe losses of $11 million in the first quarter of 1992, or $0.20 per share after- tax.
 "I'm pleased to report that, in the first quarter of 1993, we returned to a more normal level of profitability, rebounding from last year's disappointing second-half results," said Douglas W. Leatherdale, chairman and chief executive officer. "The corrective actions we implemented in 1992 appear to be taking hold."
 Net income for first-quarter 1993 was $88.0 million, or $1.95 per share, compared with $182.3 million, or $4.03 per share, for the first quarter of 1992. (First-quarter 1992 net income included the cumulative effects of two accounting changes adopted in that quarter. These changes increased 1992 first-quarter net income by $76.5 million, or $1.70 per share.) Net income also included after-tax realized gains of $8.1 million for the first quarter of 1993, compared with $13.7 million for the first quarter of 1992.
 The St. Paul Companies' revenues for first-quarter 1993 were $1.11 billion compared with $1.10 billion for first-quarter 1992.
 Underwriting Operations:
 THE ST. PAUL COMPANIES
 FIRST-QUARTER UNDERWRITING OPERATIONS HIGHLIGHTS
 Three months ended
 3/31/93 3/31/92
 Written premiums $761,152,000 $754,607,000
 Underwriting loss ($60,216,000) ($41,227,000)
 Net investment income $161,830,000 $159,838,000
 Pretax operating earnings(a) $101,473,000 $114,365,000
 Combined ratio 108.8 105.8
 (a) Excluding realized investment gains
 Insurance Brokerage Operations:
 The Minet Group, The St. Paul's London-based insurance brokerage operation, had a pretax loss of $7.8 million for the first quarter, compared with a pretax loss of $6.1 million for first-quarter 1992.
 "While we expect Minet's results to improve for the year, we don't expect a return to profitability in 1993," Leatherdale said. "However, we are very pleased with the progress Minet has made in implementing its new strategy and organization."
 Investment Banking-Asset Management Operations:
 First-quarter 1993 pretax income on The St. Paul's investment in The John Nuveen Company was $20.4 million, up from $19.5 million for first- quarter 1992. The St. Paul owns 74 percent of Nuveen stock after selling a minority interest during the second quarter of 1992. (In the first quarter of 1992, the company owned 100 percent of Nuveen.)
 At the end of the first quarter, Nuveen had $29.2 billion in assets under management, up from $.?2 billion one year ago.
 Consolidated Financial Position:
 Consolidated assets of The St. Paul Companies as of March 31, 1993, were $15.37 billion(b).
 Common shareholders' equity was $2.25 billion at the end of the first quarter, compared with $2.20 billion on Dec. 31, 1992. Book value per common share on March 31, 1993, was $53.32, compared with $52.37 on Dec. 31, 1992.
 Headquartered in Saint Paul, Minn., The St. Paul Companies provides insurance underwriting and insurance brokerage products and services.
 (b) During the first quarter, The St. Paul adopted Statement of Financial Accounting Standard No. 113, "Accounting and Reporting for Reinsurance of Short-Duration and Long-Duration Contracts," which resulted in an increase in assets and liabilities of $1.7 billion as of March 31, 1993. Adoption of the statement had no impact on net income or common shareholders' equity.
 1993 1992
 Revenues $1,114,028,000 $1,099,209,000
 Operating Earnings $79,910,000 $ 92,043,000
 Per Common Share (Fully Diluted) $1.77 $2.02
 Realized Investment Gains,
 Net of Taxes $8,121,000 $13,745,000
 Per Common Share (Fully Diluted) $0.18 $0.31
 Cumulative Effects of Accounting Changes $0 $76,483,000
 Per Common Share (Fully Diluted) $0 $1.70
 Net Income $88,031,000 $182,271,000
 Per Common Share (Fully Diluted)(c) $1.95 $4.03
 (c) The per-share figures above are fully diluted. Primary net income per share for first-quarter 1993 was $2.02, compared with $4.20 for first-quarter 1992. The primary per-share cumulative effects of accounting changes for first-quarter 1992 were $1.78.
 -0- 4/26/93
 /CONTACT: Barbara Reynolds, Corporate Communications Department, The St. Paul Companies, 612-221-7399/
 (SPC)


CO: The St. Paul Companies, Inc. ST: Minnesota IN: INS SU: ERN

KH -- MN002 -- 0559 04/26/93 10:26 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 26, 1993
Words:779
Previous Article:CALMAT REPORTS FIRST QUARTER RESULTS
Next Article:ZEOS ANNOUNCES APPOINTMENT OF NEW CHIEF FINANCIAL OFFICER
Topics:


Related Articles
THE ST. PAUL COMPANIES WILL REPORT 1992 OPERATING LOSS
THE ST. PAUL COMPANIES REPORTS 24 PERCENT RISE IN SECOND-QUARTER 1993 OPERATING EARNINGS
USF&G CORPORATION REPORTS FIRST QUARTER PROFIT; POSITIVE PROPERTY/ CASUALTY RESULTS AFFECTED BY CATASTROPHE AND STORM LOSSES
THE ST. PAUL COMPANIES REPORTS STRONG SECOND-QUARTER EARNINGS
THE ST. PAUL COMPANIES REPORTS RECORD EARNINGS
ST. PAUL COMPANIES 2ND-QUARTER EARNINGS DIP; SIX-MONTHS EARNINGS WELL AHEAD OF LAST YEAR
The St. Paul Companies' Operating Earnings Reach New 1st-Quarter Record of $130.2 Million
The St. Paul Companies Announces Third Quarter Impact of Catastrophes and Other Issues.
The St. Paul Companies Reports First-Quarter Results.
The St. Paul Companies Reports First-Quarter Results.

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