Washington National reports first quarter earnings.LINCOLNSHIRE Lincolnshire (lĭng`kənshĭr), county (1991 pop. 573,900), 2,662 sq mi (6,895 sq km), E England, on the Humber estuary, the North Sea, and The Wash. The county seat is Lincoln. , Ill.--(BUSINESS WIRE)--April 30, 1996--Washington National Corp. (NYSE NYSE See: New York Stock Exchange : WNT WNT Windows New Technology (Microsoft) WNT Windows NT Virus WNT Waste Neutralization Tank WNT Windows Networking , WNT/Pr) reported results for its first quarter ended March 31. Summarized financial data is as follows: -- 1996 first quarter net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $6.0 million ($.48 per share) versus $7.4 million ($.60 per share) in 1995; -- 1996 first quarter pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern operating income of $9.3 million compared to $11.4 million in 1995; -- Specialty health insurance operations posted a loss of $3.0 million in the 1996 first quarter versus operating income of $1.4 million in 1995; -- Life insurance and annuities segment 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 increased 19 percent to $10.0 million in the 1996 first quarter; -- Revenues increased 5 percent in first quarter 1996 over first quarter of 1995. Comparative financial data in thousands is as follows: Quarter Ended March 31, 1996 1995 % Change Revenues $175,603 $167,045 5.1% Pretax operating income 9,325 11,404 (18.2) Net operating income 6,039 7,398 (18.4) Net income 5,434 7,290 (25.5) Per share: Net operating income .48 .60 (20.0) Net income .43 .59 (27.1) Quarterly Segment Information Specialty Health Insurance -- The specialty health insurance segment reported a first quarter 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 $3.0 million in 1996 versus operating income of $1.4 million in 1995. The loss resulted primarily from an increased benefits ratio for both individual and group medical insurance and adverse group life insurance mortality experience. The high benefits ratio in individual health insurance resulted primarily from poor claims experience on policies written in New Jersey, which has implemented certain adverse restrictions on health insurers. The losses from the poor New Jersey claims experience are primarily attributable to a block of reinsured individual health insurance policies that had an operating loss of $2.2 million in the 1996 quarter, compared to operating earnings of $600 thousand a year ago. Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. National began increasing rates on these policies in the fourth quarter of last year, with additional increases in the first quarter of 1996. Washington National's core individual health insurance reported operating income of $1.0 million in the first quarter of 1996, compared to a loss of $100 thousand in the same period of last year. The increase in the benefits ratio for group medical insurance resulted from a competitive market for this business and a $500 thousand one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. expense. For the 1996 first quarter, revenues for this segment increased $7.9 million or 7 percent to $116.4 million. Life Insurance and Annuities -- There was a 19 percent improvement in earnings for the life insurance and annuities segment for the quarter. This segment reported operating income of $10.0 million in the first quarter, compared to $8.4 million in 1995. United Presidential Life Insurance Co. (UPI UPI abbr. United Press International ), the growth portion of the segment, reported a 21 percent profit improvement, to $6.2 million in 1996 from $5.1 million in 1995. The higher earnings resulted from increased policy charges and interest spreads. Profit on Washington National Insurance Company's (WNIC (Wireless Network Interface Card) See wireless adapter. ) closed block was $3.8 million in 1996 compared to $3.3 million in 1995. The improvement was the result of higher interest spreads and lower amortization of acquisition costs on a portion of the business. Segment revenue increased 2 percent in the first quarter of 1996 over 1995 to $57.9 million from $56.8 million. Revenue growth of 6 percent at UPI was partially offset by the anticipated decline in the WNIC closed block where no new sales have been made since 1989. New sales at UPI continued to improve during the quarter, with collected first year premiums up 18 percent over 1995. Corporate and Other -- The corporate and other segment reported operating income of $2.3 million in the 1996 first quarter compared to $1.6 million in 1995. The change was primarily due to reduced expenses for the segment. Summary -- Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. W. Patin pat·in n. Variant of paten. , chairman and chief executive officer, said, "The first quarter decline in operating earnings in the specialty health insurance segment was largely driven by isolated events or occurred in portions of the business where we have already taken substantive actions to improve future results. We are extremely pleased with the continued increase in profitability and new business in the 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. segment. Additionally, revenue improvement in our growth lines was quite solid." Washington National Corp. is an insurance holding company with subsidiaries engaged primarily in marketing and underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. life insurance, annuities, and health insurance for individuals and groups. -0- Washington National Corp. Summary of Operations (000s omitted, except per share amounts)
Quarter Ended
March 31,
1996 1995
Revenues Insurance premiums and policy charges $128,467 $119,382 Net investment income 44,919 45,536 Realized investment losses (610) (615) Other revenues 2,827 2,742 Total revenues $175,603 $167,045 Pretax operating income by segment Life insurance and annuities $10,003 $8,386 Specialty health insurance (2,981) 1,403 Corporate and other 2,303 1,615 Pretax operating income 9,325 11,404 Realized investment losses (610) (615) Income taxes 3,281 3,499 Net income $5,434 $7,290 Per share data Net operating income $ .48 $ .60 Net income $ .43 $ .59 Average common shares and equivalents outstanding 12,397 12,237 CONTACT: Washington National Corp. Craig Craig , Edward Gordon 1872-1966. British theatrical producer, director, and designer whose innovative productions and simplified stage designs influenced modern theater. A. Simundza, 847/793-3053 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion