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AMERICAN GENERAL REPORTS RECORD FIRST-QUARTER RESULTS

 AMERICAN GENERAL REPORTS RECORD FIRST-QUARTER RESULTS
 HOUSTON, April 23 /PRNewswire/ -- American General Corporation


(NYSE: AGC) today reported first quarter net income of $134 million, compared to $119 million in the first quarter of 1991. On a per share basis, net income increased 21 percent to $1.22 compared to $1.01 for the 1991 period. Operating earnings, which exclude realized investment gains, were $130 million compared to $119 million. On a per share basis, operating earnings increased 18 percent to a record $1.19 compared to $1.01 in the first quarter of 1991.
 Average shares outstanding were 109.1 million during the first quarter 1992, compared to 117.6 million for the 1991 period, reflecting the effect of share repurchases during 1991.
 Contributing to these record first quarter 1992 results were:
 -- A 17 percent earnings increase in the retirement annuities segment; and
 -- A 14 percent earnings improvement in the consumer finance segment.
 In commenting on these results, Harold S. Hook, chairman and chief executive officer, said, "These record earnings are not the results of a turnaround in the economy nor of a turnaround in any of our business segments -- rather, they reflect the steady progess of long-term organization-wide efforts. And, given the present environment, further improvement will have to come from more of the same."
 Retirement Annuities: Record Quarter
 Retirement annuities segment earnings increased 17 percent to a record $36 million for the first quarter 1992. This reflects continued growth in assets and an increase in the net interest margin. Segment assets of $16 billion at the end of the first quarter compare to $14 billion a year ago.
 On April 15, 1992, Standard & Poor's announced that the claims- paying ability rating of VALIC, American General's retirement annuity subsidiary, was being upgraded to AAA from AA+. In issuing this rating, S&P referred to VALIC's "excellent market position, solid earnings performance, above-average liquidity, and strengthened capitalization." S&P also pointed out that "the quality of investments is very high, and the company has a good discipline in asset/liability management."
 Consumer Finance: Earnings Up 14 Percent
 Consumer finance segment earnings increased 14 percent to $35 million in the first quarter 1992. This reflects lower borrowing costs and stable yields on receivables. Net finance receivables totalled $5.7 billion at March 31, 1992, essentially the same as a year earlier. In spite of the weak economy, loan delinquencies remained unchanged at 2.5 percent of receivable, while charge-off levels increased slightly from 2.0 percent a year ago to 2.1 percent. Both measures show improvement from year-end 1991 levels.
 Insurance - Special Markets: Premiums and Deposits Up 5 percent
 Special markets reported first quarter 1992 segment earnings of $15 million compared to $18 million for the 1991 period. Earnings for the 1991 quarter included $2.4 million from Hawaiian Life, which was sold in the second quarter of 1991. Premiums and deposits were up 5 percent to $182 million. The 1992 first quarter reflects improved net interest margins, largely offset by higher mortality claims.
 Insurance - Home Service: Sales Increase 17 Percent
 Home service segment earnings were $63 million in the first quarter, the same as for the 1991 period. First quarter 1992 earnings were adversely affected by higher mortality and morbidity claims, as well as a decline in investment yields. Marketing efforts produced a 17 percent increase in sales as measured by new annualized premium, a 10 percent reduction in policy terminations, and an increase in annualized premium in force in the first quarter of 1992.
 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 the first quarter of 1992 resulted in a net after-tax charge of $16 million compared to $24 million in the 1991 period. The 1992 first quarter includes realized investment gains of $3.3 million compared to a realized investment loss of $0.6 million a year ago.
 Invested Assets: Quality Remains High
 Invested assets were $26 billion at March 31, 1992, up 10 percent over a year ago.
 The market value of the $19 billion bond portfolio on March 31, 1992 was 4.5 percent or $850 million greater than book value. Below- investment-grade bonds of $710 million had a market value of 101 percent of book value and represented 3.8 percent of the total bond portfolio, down from 4.2 percent a year ago. At March 31, 1992, non-performing bonds totaled $86 million or 0.5 percent of the bond portfolio.
 American General's commercial mortgage loan portfolio was $3.6 billion at March 31, 1992, down from $3.7 billion at year-end 1991 and $3.8 billion a year ago. Mortgage loans delinquent 60 days or more totaled $110 million or 3.0 percent at quarter end, compared to $115 million or 3.1 percent at year-end 1991. This compares to the life insurance industry average of 5.7 percent at year-end 1991. Non- performing mortgage loans, which include both modified and delinquent loans, were 4.7 perent of 11.0 percent at year-end 1991.
 Other Financial Highlights
 Compared to a year ago:
 -- Revenues and deposits increased 7 percent to $1.8 billion
 -- Assets increased 7 percent to $37 billion
 -- Shareholders' equity increased 5 percent to $4.4 billion
 -- Book value per share increased 6 percent to $40.38
 For the last 12 months, total return on book value, which includes the increase in book value plus dividends paid, was 12 percent.
 American General is one of the nation's largest consumer financial services organizations. Headquartered in Houston, it is a leading provider of retirement annuities, consumer loans, and life insurance. 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)
 Quarter Ended March 31,
 1992 1991
 Revenues and deposits $ 1,755,241 $ 1,633,110
 Business segment earnings:
 Retirement annuities $ 36,214 $ 30,873
 Consumer finance 35,414 31,036
 Insurance-special markets 15,273 17,897
 Insurance-home service 63,086 62,670
 Total business segment earnings 149,987 142,476
 Corporate Operations:
 Interest on corporate debt (21,206) (21,439)
 Expenses not allocated to
 segments (5,335) (8,540)
 Earnings on corporate assets 6,741 6,746
 Realized investment gains 3,333 (558)
 Total corporate operations (16,467) (23,791)
 Net income $ 133,520 $ 118,685
 Net income per share $ 1.22 $ 1.01
 Average shares outstanding (000) 109,064 117,597
 Operating earnings (A) $ 130,187 $ 119,243
 Operating earnings per
 share (A) $ 1.19 $ 1.01
 As of March 31,
 (in millions, except per share)
 1992 1991
 Assets $ 36,889 $ 34,428
 Shareholders' equity 4,399 4,179
 Book value per share 40.38 37.92
 Market price per share 42.13 38.50
 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- 4/23/92
 /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/
 (AGC) CO: American General Corporation ST: Texas IN: FIN SU: ERN


KD -- NY072 -- 1843 04/23/92 11:46 EDT
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