Printer Friendly

ALLMERICA PROPERTY & CASUALTY COMPANIES, INC. 1992 AND FOURTH QUARTER EARNINGS

 WORCESTER, Mass., Feb. 16 /PRNewswire/ -- Allmerica Property and Casualty Companies, Inc. ("Allmerica P & C") (NASDAQ: ALPC, formerly NASDAQ: HINS), a national property and casualty insurance holding company whose most significant business holdings are The Hanover Insurance Company ("Hanover") and Citizens Insurance Company of America ("Citizens"), today reported net income for the year ended Dec. 31, 1992 of $133.7 million, or $6.48 per share, compared to $48.7 million, or $2.36 per share, for the year ended Dec. 31, 1991. Net income for the fourth quarter of 1992 was $26 million, or $1.26 per share, compared to $15.7 million, or 76 cents per share, in the fourth quarter of 1991.
 Allmerica P & C also reported the Feb. 12, 1993 completion of the sale of Beacon Insurance Company of America (including its wholly-owned subsidiary American Select Insurance Company), a property and casualty insurance subsidiary located in Ohio, to Ohio Farmers Insurance Company. The company received cash of approximately $89.7 million in connection with the sale and expects to record a net gain of approximately $20 million in the first quarter of 1993.


1992 Results
 Allmerica P & C's consolidated net premiums written increased 5.9 percent to $1,700.3 million in 1992 from $1,605.8 million in 1991, primarily as a result of growth in net premiums written at Citizens. Citizens net premiums written increased 14.4 percent to $697.6 million in 1992 from $609.6 million in 1991, primarily due to rate increases in both commercial and personal lines as well as continued growth in policies in force and certain personal lines programs. Hanover net premiums written of $944.6 million in 1992 approximated to those in 1991. Increases in net premiums written in Hanover's personal lines of $64.5 million, or 13.2 percent were offset by a decline in commercial lines net premiums written of $64 million, or 14.2 percent which was primarily due to continued price competition.
 Consolidated net income from operations for Allmerica P & C was $114.7 million, or $5.56 per share, for 1992, excluding net realized capital gains, compared to $43.9 million, or $2.13 per share, for 1991, excluding net realized capital gains and the "fresh start" benefit. This increase was due to enhanced profitability at both Citizens and Hanover. Citizens contributed net income from operations of $66.3 million, representing a significant increase over Citizens' net income from operations of $17.5 million in 1991. Citizens' substantial improvement was primarily the result of mild weather in Michigan and Indiana in 1992 which improved results in the personal and commercial automobile lines; 1991 reserve strengthening in the commercial multiple peril line which negatively impacted 1991 results in this line; and a decrease in the level of catastrophic losses from $11.2 million in 1991 to $5 million in 1992. Hanover contributed net income from operations of $44.3 million, representing a major increase over Hanover's net income from operations of $19.4 million in 1991. Improved results at Hanover were due primarily to a decrease in involuntary pool loss assessments during 1992 compared to 1991.
 Consolidated net investment income before taxes for Allmerica P & C increased 4.8 percent to $210.6 million in 1992 from $200.9 million in 1991 as a result of an increase in the level of investments. Growth in net investment income was effected by an increase in the level of tax exempt investments in the portfolio, as well as a continuing general decline in interest rates.
 Although the industry as a whole was severely impacted by catastrophe losses this year, Allmerica P & C was relatively uneffected. Overall, catastrophe losses increased to $42.5 million in 1992 compared with $32.4 million in 1991, representing 2.6 points and 2.0 points of the combined ratios in 1992 and 1991, respectively.
 Allmerica P & C's statutory combined ratio, including policyholders's dividends, improved to 104.5 in 1992 from 109.5 in 1991 due to the improvements in profitability at Citizens and Hanover. Citizens' statutory combined ratio, including policyholders' dividends, improved to 97.9 in 1992 from 106.8 in 1991. Hanover's statutory combined ratio, including policyholders' dividends, improved to 109.3 in 1992 from 111.9 in 1991.


Balance Sheet
 Allmerica P & C's consolidated fixed maturity investments represented 94 percent of total invested assets of $3 billion at Dec. 31, 1992, and of the fixed maturity investments, 97.8 percent were rated investments grade or above. The level of fixed maturity investments rated investment grade or above has not changed significantly from Dec. 31, 1991. The estimated market value of fixed maturity investments rated below investment grade is approximately $15.1 million higher than the carrying value. There are no investments in real estate or mortgages secured by real estate.
 Shareholders' equity increased $134.2 million during 1992 from $834.3 million, or $40.44 per share at Dec. 31, 1991 to $968.6 million, or $46.94 per share, at Dec. 31, 1992.


Fourth Quarter Results
 Consolidated net premiums written for Allmerica P & C increased 14.1 percent to $422.4 million in the fourth quarter of 1992 from $370.2 million in 1991. This growth results from a combination of increased estimates for involuntary pool writings in the fourth quarter of 1992 vs. 1991 at Hanover, and both rate increases and continued growth in certain personal lines programs at Citizens.
 Allmerica P & C's consolidated net income from operations excluding net realized capital gains, increased 32 percent to $19.4 million, or 94 cents per share, in the fourth quarter of 1992 compared to $14.7 million, or 71 cents per share, in the fourth quarter of 1991, excluding net realized capital gains and the "fresh start" benefit. This improvement was due primarily to reduced underwriting losses recognized on involuntary assessments at Hanover in the fourth quarter of 1992 compared to the fourth quarter of 1991.
 Allmerica P & C's consolidated net investment income before taxes was $52.6 million in the fourth quarter of 1992, representing a 1.1 percent decrease from net investment income before taxes of $53.2 million in the fourth quarter of 1991. The decrease is primarily the result of an increase in the level of tax exempt investments in the portfolio in 1992, as well as the general decline in interest rates.
 Net weather related catastrophes for Allmerica P & C were $12.2 million in the fourth quarter of 1992, representing 2.9 points and 0.6 points of the combined ratios for the fourth quarter of 1992 and 1991, respectively.
 Allmerica P & C's statutory combined ratio, including policyholders' dividends, improved slightly to 109.5 in the fourth quarter of 1992 from 110.1 in the fourth quarter of 1991.
 All quarterly figures are unaudited, and all results are reported in accordance with generally accepted accounting principles (GAAP) with the exception of the combined ratio and underwriting exhibits which are reported on a statutory basis.
 Allmerica Property & Casualty Companies, Inc. include: The Hanover Insurance Company; Citizens Insurance Company of America; Massachusetts Bay Insurance Company; The Hanover American Insurance Company; Sterling Risk Management Services, Inc.; Beacon Insurance Company of America; American Select Insurance Company; Hanover Lloyd's Insurance Company; AMGRO, Inc.; Citizens Management, Inc.
 Allmerica Property & Casualty Companies, Inc. (0)
 Quarter Dec. 31: 1992 1991
 Net income $26,077,000 $15,762,000
 Earnings per share(a) $1.26 76 cents
 Average no. shares 20,632,000 20,632,000
 12 months Dec. 31:
 Net income $133,739,000 $48,748,000
 Earnings per share(a) $6.48 $2.36
 Average no. shares 20,632,000 20,632,000
 All figures reported aren in accordance with generally accepted accounting principles (GAAP).
 ----
 NOTE: (a) Includes net realized gain on investments, net of federal income taxes at the statutory rate of 34 percent, without regard for alternative minimum tax (AMT) in 1992 and 1991, as follows:
 Y-T-D 4th QTR
 1992 1991 1992 1991
 Net realized gain on
 investments, net of
 applicable federal
 income taxes 92 cents 14 cents 32 cents 3 cents
 -0- 2/16/93
 /CONTACT: Edward J. Parry III, treasurer of Allmerica Property & Casualty Companies, Inc., 508-855-4600/
 (ALPC HINS)


CO: Allmerica Property & Casualty Companies, Inc. ST: Massachusetts IN: INS SU: ERN

DD -- NE006 -- 6796 02/16/93 10:20 EST
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:Feb 16, 1993
Words:1385
Previous Article:ELECTRONIC BOOK TECHNOLOGIES' DYNATEXT TAPPED FOR ADVANTAGE KBS' INTEGRATED CUSTOMER SERVICE SOLUTIONS
Next Article:LORAD'S DIGITAL IMAGING SYSTEM PATENT CLAIMS ALLOWED
Topics:


Related Articles
ALLMERICA PROPERTY & CASUALTY ANNOUNCES FIRST QUARTER EARNINGS
ALLMERICA PROPERTY & CASUALTY ANNOUNCES SECOND QUARTER EARNINGS
ALLMERICA PROPERTY & CASUALTY ANNOUNCES THIRD QUARTER EARNINGS
ALLMERICA PROPERTY & CASUALTY COMPANIES, INC. ANNOUNCES 1993 AND FOURTH QUARTER EARNINGS
ALLMERICA FINANCIAL REPORTS SIXTH CONSECUTIVE RECORD YEAR: CELEBRATES 150TH ANNIVERSARY OF FOUNDING
ALLMERICA P&C TO TAKE FOURTH QUARTER CHARGE FOR INDUSTRIAL POOL LOSSES
ALLMERICA FINANCIAL CORPORATION; ALLMERICA P&C RESULTS TO BE IMPACTED BY STORM LOSSES
CITIZENS CORPORATION EXPECTS $14 MILLION CHARGE IN SECOND QUARTER FOR APRIL 1996 STORM LOSSES; RESULTS WILL IMPACT PARENT COMPANIES
ALLMERICA FINANCIAL CORPORATION REPORTS FIRST QUARTER NET OPERATING EARNINGS OF $0.53 PER SHARE
Allmerica Property & Casualty Companies, Inc. Reports Third Quarter Operating Income Of $0.70 Per Share

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