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AMERICAN GENERAL REPORTS 1991 RESULTS; FOURTH QUARTER NET INCOME PER SHARE UP 24 PERCENT; 1991 NET INCOME TOTALS $480 MILLION

 AMERICAN GENERAL REPORTS 1991 RESULTS; FOURTH QUARTER NET INCOME
 PER SHARE UP 24 PERCENT; 1991 NET INCOME TOTALS $480 MILLION
 HOUSTON, Feb. 3 /PRNewswire/ -- American General Corporation (NYSE: AGC) today reported fourth-quarter 1991 net income of $119 million or $1.09 per share compared to $106 million or $.88 per share for the 1990 period.
 Net income for the full year 1991 was $480 million or $4.25 per share, consisting of operating earnings of $479 million and net realized investment gains of $1 million. This compares with net income for 1990 of $562 million, composed of operating earnings of $425 million and net realized investment gains of $137 million an unusually high level resulting from the 1990 sale of the common stock portfolio.
 In commenting on the results, Harold S. Hook, chairman and chief executive officer, said, "We are particularly proud of these record- level results in view of the challenging economic conditions and general business climate during 1991. Although we see many of these challenges continuing through most of 1992, we are planning for continued growth and progress."
 BUSINESS SEGMENTS REALIGNED
 Since year-end 1988, American General has used the following three- business segment reporting structure: Insurance - Home Service, Insurance - Special Markets, and Finance/Real Estate. Effective with the fourth quarter and full year 1991 results, the company is announcing a new four-business segment reporting structure. The new segments are Insurance - Home Service, Insurance - Special Markets, Retirement Annuities, and Consumer Finance. The changes are as follows:
 -- The former Insurance - Special Markets segment has been divided
 into Retirement Annuities and Insurance - Special Markets. This
 recognizes the significant growth and major importance of
 retirement annuities in our operations.
 -- The "Finance" part of the former Finance/Real Estate segment
 has been set up as a separate segment - Consumer Finance. This
 change recognizes the significant growth and major importance
 of consumer finance at American General.
 -- The "Real Estate" part of the former Finance/Real Estate
 segment is now included in corporate operations. As a result,
 all earnings from real estate investments and other corporate
 investments will now be included in corporate operations.
 RESTATEMENT IMPACT ON EARNINGS
 Net income for current and prior periods will not be affected by this segment realignment. Operating earnings for the full year 1991 were not changed, but the reclassification of gains on sales of real estate investments did decrease operating earnings, and increase net realized investment gains, by $.17 per share for the full year 1990 and by $.05 per share for the fourth quarter of 1990.
 INSURANCE - HOME SERVICE EARNINGS UP 5 PERCENT
 Insurance - Home Service earnings in 1991 increased 5 percent to $256 million, compared to $244 million in 1990. These earnings reflect $34 million in reduced operating expenses resulting from the home office consolidation completed during the year. Results were adversely affected by declining yields on invested assets and higher than expected mortality and morbidity.
 INSURANCE - SPECIAL MARKETS EARNINGS UP 18 PERCENT
 Earnings for the Insurance - Special Markets segment, which now excludes retirement annuities, increased 18 percent in 1991 to $70 million compared to $59 million in 1990. This improvement reflects a 16 percent increase in premiums and deposits and improved margins.
 RETIREMENT ANNUITIES EARNINGS UP 11 PERCENT
 Earnings for the Retirement Annuities segment were $110 million in 1991, an 11 percent increase over the prior year. Results for 1991 were adversely affected by a fourth quarter after-tax charge of $5 million, reflecting estimated liabilities to state insurance guaranty associations resulting from the Executive Life insolvency. Excluding this charge, 1991 earnings would have been $115 million or 16 percent above the 1990 level. During 1991, segment assets grew 18 percent to $15 billion.
 CONSUMER FINANCE EARNINGS UP 9 PERCENT
 Earnings for American General's Consumer Finance segment increased 9 percent to $136 million in 1991. This increase reflects an improved spread between the yield on the consumer loan portfolio and the cost of borrowing. Finance receivables grew 2 percent to $6 billion at year-end 1991. For 1991, charge-offs were 2.3 percent of receivables, compared to 2.0 percent for the prior year. Delinquencies of 2.6 percent at Dec. 31, 1991 compared to 2.4 percent at year-end 1990.
 CORPORATE
 Corporate operations include interest expense on corporate debt, expenses not allocated to the business segments, earnings on corporate investments, and realized investment gains. Corporate operations for 1991 resulted in a net after-tax charge of $91 million compared to a net after-tax gain of $35 million in 1990. In 1990 corporate operations included $116 million of net realized investment gains from the sale of American General's common stock portfolio.
 OTHER 1991 FINANCIAL HIGHLIGHTS
 -- Revenues and deposits increased 4 percent to $6.6 billion.
 -- Assets as of Dec. 31, 1991 increased 7 percent to $36 billion.
 -- Shareholders' equity increased 5 percent to $4.3 billion at
 year-end 1991.
 -- Book value per share increased 7 percent to $39.73.
 -- The increase in book value plus dividends paid in 1991
 was $4.59 per share, a 12 percent return on book value.
 -- Average shares outstanding during 1991 were 112.7 million
 compared to 119.3 million in 1990.
 QUALITY OF INVESTED ASSETS
 At Dec. 31, 1991, American General's investment portfolio totaled $25 billion, an increase of 9 percent over year-end 1990.
 The market value of the $18 billion bond portfolio at year-end 1991 was 7.2 percent or $1.3 billion greater than book value. Below- investment-grade bonds of $756 million, representing 4.2 percent of the total bond portfolio, had a market value of 98 percent of book value. At year-end 1991, non-performing bonds totaled $107 million or 0.6 percent of the bond portfolio.
 American General's commercial mortgage loan portfolio was $3.7 billion at year-end 1991 compared to $3.8 billion a year ago. Mortgage loans delinquent 60 days or more totaled $107 million or 2.9 percent at December 31, 1991, compared to 2.1 percent a year ago. Delinquent mortgage loans for the life insurance industry totaled 5.7 percent as of Sept. 30, 1991. Non-performing mortgage loans, which include both modified and delinquent loans, were 4.7 percent of the mortgage loan portfolio at year-end 1991 compared to 2.9 percent at year-end 1990. Non-performing commercial mortgage loans for the life insurance industry totaled 9.8 percent as of Sept. 30, 1991.
 SUPERIOR CLAIMS-PAYING ABILITY RATINGS
 Duff & Phelps recently assigned its highest claims-paying rating (AAA) to American General Life Insurance Company. Duff & Phelps has also assigned American General's retirement annuity company, VALIC, a AAA rating.
 During 1991, Standard & Poor's assigned its highest rating (AAA) to American General Life and Accident Insurance Company, American General Life Insurance Company, and American General Life Insurance Company of New York, and its second highest rating (AA+) to VALIC.
 Both rating agencies cited American General's high-quality assets, stable earnings, and strong market positions as support for these "superior" ratings.
 SHARE REPURCHASES
 During 1991 American General purchased 9.6 million shares of its common stock at a cost of $378 million or $39.24 per share. Since the inception of the share repurchase program in April 1987, American General has purchased a total of 41.4 million shares for an aggregate purchase price of $1.5 billion or $35.90 per share, representing 28 percent of the total shares then outstanding.
 American General is a consumer financial services organization with assets of over $36 billion and equity of $4.3 billion. Headquartered in Houston, it is one of the nation's leading providers of life insurance, retirement annuities, and consumer loans. American General Corporation (AGC) common stock is listed on the New York, Pacific, London and Swiss stock exchanges.
 AMERICAN GENERAL CORPORATION COMPARATIVE RESULTS
 (Dollars in thousands, except per share data) (Unaudited)
 Year Ended December 31,
 1991 1990
 1. Revenues and Deposits $ 6,641,785 $ 6,358,506
 Business Segment Earnings:
 2. Insurance - Home Service 255,892 244,182
 3. Insurance - Special
 Markets 69,585 58,840
 4. Retirement Annuities 109,818 98,785
 5. Consumer Finance 136,138 124,785
 6. Total Business Segment
 Earnings 571,433 526,592
 Corporate Operations:
 7. Interest on Corporate
 debt (86,580) (119,171)
 8. Expenses Not Allocated
 to segments (36,571) (51,646)
 9. Earnings on Corporate
 Assets 31,122 69,495
 10. Realized Investment Gains 787 136,358
 11. Total Corporate
 Operations (91,242) 35,036
 12. Net Income $ 480,191 $ 561,628
 13. Net Income Per Share $ 4.25 $ 4.69
 14. Average Shares
 Outstanding (000) 112,681 119,292
 15. Operating Earnings (A) $ 479,404 $ 425,270
 16. Operating Earnings per
 Share (A) $ 4.25 $ 3.55
 (in millions, except per share)
 As of December 31,
 1991 1990
 17. Assets $ 36,105 $ 33,808
 18. Shareholders' Equity 4,329 4,138
 19. Book Value Per Share 39.73 37.14
 20. Market Price Per Share 44.50 30.75
 Quarter Ended December 31,
 1991 1990
 1. Revenues and Deposits $ 1,732,416 $ 1,610,036
 Business Segment Earnings:
 2. Insurance - Home Service 67,256 61,599
 3. Insurance - Special
 Markets 15,316 15,897
 4. Retirement Annuities 21,848 24,659
 5. Consumer Finance 35,818 33,237
 6. Total Business Segment
 Earnings 140,238 135,392
 Corporate Operations:
 7. Interest on Corporate
 debt (21,961) (28,351)
 8. Expenses Not Allocated
 to segments (9,979) (16,028)
 9. Earnings on Corporate
 Assets 9,013 19,393
 10. Realized Investment Gains 2,120 (4,987)
 11. Total Corporate
 Operations (20,807) (29,973)
 12. Net Income $ 119,431 $ 105,419
 13. Net Income Per Share $ 1.09 $ .88
 14. Average Shares
 Outstanding (000) 109,133 118,956
 15. Operating Earnings (A) $ 117,311 $ 110,406
 16. Operating Earnings per
 Share (A) $ 1.08 $ .92
 (in millions, except per share)
 As of December 31,
 1991 1990
 17. Assets $ 36,105 $ 33,808
 18. Shareholders' Equity 4,329 4,138
 19. Book Value Per Share 39.73 37.14
 20. Market Price Per Share 44.50 30.75
 Income Reporting: In order to facilitate meaningful period-to- period comparisons of business segment results, the following reporting methods have been used: (a) Business segment earnings include earnings from business operations and earnings on that equity considered necessary to support the business. (b) Earnings on equity not allocated to the business segments are included in earnings on corporate assets. (c) Realized investment gains on an after-tax basis are shown separately in Corporate Operations.
 (A) Operating Earnings: Under generally accepted accounting principles, operating earnings, which exclude after-tax realized investment gains, are not separately presented. They are presented here as supplemental information.
 -0- 2/3/92
 /CONTACT: James S. D'Agostino Jr., senior vice president, administration, 713-831-1224, or Robert D. Mrlik, director, investor relations, 713-831-1137, both of American General Corporation/
 (AGC) CO: American General Corporation ST: Texas IN: INS SU: ERN


KD -- NY060 -- 6186 02/03/92 12:19 EST
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