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AMERICAN ANNUITY GROUP REPORTS RESULTS

 CINCINNATI, Oct. 29 /PRNewswire/ -- For the quarter ended Sept. 30, 1993, American Annuity Group, Inc. (NYSE: AAG) (AAG), reported net income from operations of $8.8 million, or $.22 per share. In addition, AAG realized investment gains of approximately $1.5 million, or $.05 per share, and an extraordinary loss of $3.4 million, or $.10 per share. Total net income for the quarter was $6.9 million, or $.17 per share. The extraordinary loss resulted from the early retirement of all bank debt. AAG incurred the bank debt to purchase Great American Life Insurance Company (GALIC) on Dec. 31, 1992.
 For the nine months ended Sept. 30, 1993, AAG reported net income from operations of $25.0 million, or $.64 per share. The company also reported realized investment gains of $18.8 million, or $.54 per share, a relocation charge of $5.2 million, or $.15 per share, and the extraordinary loss noted above for total net income of $35.2 million, or $.93 per share, for the nine months.
 For the third quarter of 1992, AAG's predecessor reported a net loss of $700,000 from continuing operations. Results for the first nine months of 1992 included a loss of $800,000 from continuing operations, an $8.2 million loss from discontinued operations, and a $3.1 million charge representing the cumulative effect of changing its method of accounting for certain postretirement medical benefits.
 GALIC's Operations
 On a statutory basis, premiums written for the first nine months of 1993 increased 12 percent from the same period of 1992. GALIC's pretax GAAP operating income for the first nine months of 1993 was substantially above the first nine months of 1992, largely the result of increased investment income and increased spread between investment yield and policy crediting rates. The increase in investment income is primarily the result of the growth in GALIC's fixed-income portfolio.
 Asset Quality
 GALIC's investment portfolio is composed of high quality assets, with investment-grade securities comprising about 94 percent of the fixed-income portfolio. Non-performing investments represented approximately one-tenth of 1 percent of assets. Total mortgages and real estate represented about 1 percent of assets at Sept. 30, 1993. GALIC had over $290 million in unrealized gains on its fixed-income portfolio at Sept. 30, 1993.
 American Annuity (through Great American Life Insurance Company) is engaged in the sale of tax-deferred annuities to employees of educational and not-for-profit institutions.
 AMERICAN ANNUITY GROUP, INC.
 Condensed Statement of Operations
 (In millions, except per share amounts)
 Periods ended Sept. 30: Three months Nine months
 1993 1992 1993 1992(A)
 Investment income & other revenues $86.8 $0.9 $264.0 $2.8
 Realized gains on sales of investments 2.8 -- 29.0 --
 Total revenues 89.6 0.9 293.0 2.8
 Interest on annuity
 policyholders' funds 57.0 -- 173.7 --
 Interest on borrowed money
 & other debt expenses 5.7 -- 16.5 --
 Relocation expense -- -- 8.0 --
 Other expenses 11.4 1.6 36.4 3.6
 Total expenses 74.1 1.6 234.6 3.6
 Income (loss) from continuing opers.
 before income taxes 15.5 (0.7) 58.4 (0.8)
 Provision for income taxes 5.2 -- 19.8 --
 Net income (loss) from cont. opers. 10.3 (0.7) 38.6 (0.8)
 Loss from discontinued operations -- -- -- (8.2)
 Extraordinary item (3.4) -- (3.4) --
 Cumulative effect of change
 in accounting principle -- -- -- (3.1)
 Net income (loss) 6.9 (0.7) 35.2 (12.1)
 Less: Preferred dividend requirement .9 -- 2.7 --
 Net income (loss) applicable
 to common stock $6.0 ($0.7) $32.5 ($12.1)
 Income (loss) per common share:
 Continuing operations $0.27 ($0.04) $1.03 ($0.04)
 Discontinued operations -- -- -- (0.46)
 Extraordinary item (0.10) -- (0.10) --
 Accounting change -- -- -- (0.17)
 Net income (loss) per common share $0.17 ($0.04) $0.93 ($0.67)
 Average shares outstanding 35.1 18.0 35.1 18.0
 Supplemental Financial Data: 3 mos. ended 9 mos. ended
 9/30/93 9/30/93
 Per Per
 Share Share
 Net income before realized gains,
 relocation charge & extraord. item $8.8 $.22 $25.0 $.64
 Realized investment gains (after tax) 1.5 .05 18.8 .54
 Relocation charge (after tax) -- -- (5.2) (.15)
 Extraordinary item (after tax) (3.4) (.10) (3.4) (.10)
 Total: $6.9 $.17 $35.2 $.93
 (A) -- Restated Dec. 31 to reflect accounting change retroactive to Jan. 1, 1992.
 -0- 10/29/93
 /CONTACT: S. Craig Lindner, president of AAG, 513-579-2529/
 (AAG)


CO: American Annuity Group, Inc.; Great American Life Insurance Company ST: Ohio IN: FIN INS SU: ERN

TW-JS -- NY064 -- 8577 10/29/93 14:22 EDT
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Date:Oct 29, 1993
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