Printer Friendly

AMERICAN ANNUITY GROUP REPORTS RESULTS

 CINCINNATI, Ohio, April 28 /PRNewswire/ -- American Annuity Group, Inc. (NYSE: AAG) today reported results for the three months ended March 31, 1993. The first quarter of 1993 is the initial period in which the operations of Great American Life Insurance Company (GALIC) are included in AAG's results. GALIC was acquired by AAG on Dec. 31, 1992, and is AAG's only significant operating subsidiary.
 AAG reported net income for the quarter ended March 31, 1993 of $11.5 million or $.30/share. First quarter after-tax operating earnings were $7.9 million ($.20/share). After-tax operating earnings exclude $8.9 million ($.25/share) in realized investment gains and a $5.3 million ($.15/share) after-tax charge related to relocation expenses.
 For the first quarter of 1992, AAG's predecessor reported a $100,000 profit from continuing operations, a $1.2 million loss from discontinued operations, and a $3.1 million charge representing the cumulative effect of changing its method of accounting for certain postretirement medial benefits.
 GALIC's Operations
 Premiums written, on a statutory basis, increased 18 percent from the first quarter of 1992. GALIC's pre-tax operating income for the first quarter of 1993 increased 80 percent from its first quarter of 1992. The improvement in GALIC's operating income is largely the result of increased investment income and increased spread between investment yield and policy crediting rates. The increase in investment income reflects the growth of GALIC's fixed income portfolio.
 The National Association of Insurance Commissioners has developed a risk based capital formula to help measure the financial stability of life insurance companies. GALIC's risk based capital at March 31, 1993 substantially exceeded the regulatory threshold.
 Asset Quality
 GALIC's asset quality continues to be very high with non-performing investments representing less than one-tenth of one percent of assets. Mortgages and real estate, in the aggregate, represent less than 0.7 percent of assets. At March 31, 1993, GALIC had over $220 million in unrealized gains on its fixed income portfolio.
 Relocation of GALIC's Operations
 AAG has announced its plans to move GALIC's operations from Los Angeles to Cincinnati. This relocation should be substantially completed during 1993.
 American Annuity Group is an 82 percent-owned subsidiary of American Financial Corporation. Through Great American Life Insurance Company, American Annuity is engaged in the sale of tax deferred annuities to teachers and other employees of not-for-profit institutions.
 AMERICAN ANNUITY GROUP INC.
 Condensed Statement of Operations
 (In millions, except per share amounts)
 Three Months Ended March 31, 1993 1992(A)
 (Restated)
 Revenues from operations $88.6 $0.8
 Realized gains and losses on
 sale of securities 13.5 --
 Total revenues 102.1 0.8
 Interest on annuity policyholders' funds 59.2 --
 Interest on borrowed money and other
 debt expenses 5.3 --
 Relocation expense 8.0 --
 Other expenses 12.2 0.7
 Total expenses 84.7 0.7
 Income from continuing operations before
 income taxes 17.4 0.1
 Provision for income taxes 5.9 --
 Net income from continuing operations 11.5 0.1
 Loss from discontinued operations -- (1.2)
 Cumulative effect of change in
 accounting principle -- (3.1)
 Net income (loss) 11.5 (4.2)
 Less: Preferred dividend requirement .9 --
 Net income (loss) applicable to
 common stock $10.6 $(4.2)
 Income (loss) per common share:
 Continuing operations $0.30 $0.01
 Discontinued operations -- (0.07)
 Accounting change -- (0.17)
 Net income (loss) per common share $0.30 $(0.23)
 Average shares outstanding 35.1 18.0
 Supplemental Financial Data: Three Months Ended March 31, 1993
 Per Share
 After-tax earnings from operations $7.9 .20
 Realized investment gains (after tax) 8.9 .25
 Relocation charge (after tax) (5.3) (.15)
 $11.5 $.30
 (A) Restated December 31 to reflect accounting change retroactive to Jan. 1, 1992.
 -0- 4/28/93
 /CONTACT: S. Craig Lindner, president of AAG, 513-579-2529/
 (AAG)


CO: American Annuity Group, Inc. ST: Ohio IN: INS SU: ERN

LD -- NY114 -- 2355 04/28/93 18:39 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 28, 1993
Words:650
Previous Article:MAXUM HEALTH CORP. BOARD OF DIRECTORS ELECTS GAINES W. HAMMOND JR. AND APPOINTS RESTRUCTURING COMMITTEE AND CHAIRMAN; GENE MCGREVIN RESIGNS
Next Article:PEAK TECHNOLOGIES GROUP ANNOUNCES FIRST QUARTER RESULTS.
Topics:


Related Articles
STI COMPLETES ACQUISITION OF GALIC AND CHANGES NAME TO AMERICAN ANNUITY GROUP, INC.
AMERICAN ANNUITY GROUP SENIOR SUBORDINATED NOTES RATED 'BB-' BY FITCH -- FITCH FINANCIAL WIRE --
AMERICAN ANNUITY GROUP PROPOSED SENIOR NOTES RATED 'BB' BY FITCH -- FITCH FINANCIAL WIRE --
AMERICAN ANNUITY GROUP ELECTS LINDNER PRESIDENT/DIRECTOR
AMERICAN ANNUITY GROUP REPORTS RESULTS
AMERICAN ANNUITY GROUP, INC. FILES REGISTRATION STATEMENT FOR SENIOR NOTES
AMERICAN ANNUITY GROUP, INC. AGREES TO SELL SENIOR NOTES
AMERICAN ANNUITY GROUP REPORTS RESULTS
AMERICAN ANNUITY GROUP'S NET OPERATING EARNINGS CONTINUING UPWARD TREND; 3RD QUARTER UP 6%; YEAR-TO-DATE UP 23%
American Annuity Group Calls Senior Subordinated Notes for Redemption

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