Printer Friendly

AMERICAN TRAVELLERS CORPORATION ANNOUNCES THIRD QUARTER RESULTS

 AMERICAN TRAVELLERS CORPORATION ANNOUNCES THIRD QUARTER RESULTS
 BENSALEM, Pa., Nov. 12 /PRNewswire/ -- American Travellers Corporation (NASDAQ: ATVC) today announced its financial results for the company's third quarter ended Sept. 30, 1992.
 During the period, revenues increased 19.8 percent to $36.80 million from
$30.73 million in the corresponding quarter of 1991. For the nine months ended Sept. 30, 1992, total revenues increased 24.8 percent to $108.55 million from $86.98 million for the nine months ended Sept. 30, 1991. Net income during the company's 1992 third quarter decreased 26.2 percent to $2.13 million from $2.89 million in the corresponding 1991 period and for the first nine months of 1992, net income increased 0.1 percent to $8.14 million from $8.13 million during the first nine months of 1991. The company's earnings per share decreased 25.0 percent to $.21 for the third quarter of 1992 from $.28 during the third quarter of 1991, which includes a decrease of 0.2 percent in the company's weighted average outstanding shares, and for the nine months ended Sept. 30, 1992, earnings per share decreased 1.3 percent to $.78 from $.79 in the corresponding Sept. 30, 1991 period, reflecting an increase of 0.7 percent in the company's weighted average number of shares.
 The company reported that earnings for the quarter were in line with its expectations. Earnings for the quarter were lower compared to the same period in 1991 as a result of accelerated amortization of deferred acquisition costs associated with the company's Medicare Supplement business. The accelerated amortization resulted from an increase in Medicare Supplement lapses caused by rate increases implemented early in 1992. Earnings were lower compared to the second quarter of 1992 as a result of higher Medicare Supplement utilization, as well as continued high Medicare Supplement lapses. The company said it anticipates that fourth quarter earnings will be comparable to the third quarter.
 American Travellers Corporation is engaged through its subsidiaries in the underwriting and sale of individual supplemental accident and health insurance policies primarily covering long-term care (skilled, intermediate and custodial nursing home care). The company also offers hospital care and Medicare Supplement policies. The company has been admitted to 43 states plus the District of Columbia and the United States and British Virgin Islands, and has pending license applications in three additional states, including New Jersey.
 AMERICAN TRAVELLERS CORPORATION AND SUBSIDIARIES
 (In thousands, except per-share data)
 Third quarter ending Sept. 30 1992 1991 Percent Change
 Revenues $36,800 $30,728 19.8
 Net income 2,131 2,888 (26.2)
 EPS $.21 $.28 (25.0)
 Average weighted number
 of shares 10,369,095 10,386,604 .2
 Nine months ending Sept. 30 1992 1991 Percent Change
 Revenues $108,551 $86,979 24.8
 Net income 8,135 8,126 0.1
 EPS $.78 $.79 (1.3)
 Average weighted number
 of shares 10,418,179 10,349,970 .7
 Consolidated Statements of Income
 (Unaudited, in thousands except per-share data)
 Three months ended Sept. 30 1992 1991
 Revenues:
 Accident and health premiums $33,598 $28,297
 Life premiums 811 420
 Net investment income 2,391 2,011
 Total revenues 36,800 30,728
 Benefits and expenses:
 Benefits to policyholders 18,466 16,859
 Commissions 10,556 9,388
 General and administrative 6,671 5,540
 Amortization of deferred policy
 acquisition costs 5,876 3,727
 Less: policy acquisition costs
 deferred (7,997) (9,066)
 Total benefits and expenses 33,572 26,448
 Income before provision for
 income taxes 3,228 4,280
 Provision for income taxes 1,097 1,392
 Net income 2,131 2,888
 Earnings per common share $.21 $.28
 Weighted average number of shares
 outstanding 10,369 10,387
 Nine months ended Sept. 30 1992 1991
 Revenues:
 Accident and health premiums $99,988 $79,746
 Life premiums 1,964 1,148
 Net investment income 6,599 6,085
 Total revenues 108,551 86,979
 Benefits and expenses:
 Benefits to policyholders 53,701 43,470
 Commissions 31,631 29,804
 General and administrative 19,684 15,681
 Amortization of deferred policy
 acquisition costs 14,700 12,437
 Less: policy acquisition costs
 deferred (23,490) (26,453)
 Total benefits and expenses 96,226 74,939
 Income before provision for
 income taxes 12,325 12,040
 Provision for income taxes 4,190 3,914
 Net income 8,135 8,126
 Earnings per common share $.78 $.79
 Weighted average number of shares
 outstanding 10,418 10,350
 /delval/
 -0- 11/12/92
 /CONTACT: John A. Powell, chairman of American Travellers, 215-244-1600/
 (ATVC) CO: American Travellers Corporation ST: Pennsylvania IN: INS SU: ERN


CC-JS -- PH013 -- 0438 11/12/92 17:54 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 12, 1992
Words:781
Previous Article:PROVIDENT NATIONAL BANK TO COLLECT FOR 'TOYS FOR TOTS' PROGRAM
Next Article:STATEMENT BY AMERICAN OPTOMETRIC ASSOCIATION ON REPORTS OF EYE HEALTH RISKS ASSOCIATED WITH DISPOSABLE CONTACT LENSES
Topics:


Related Articles
AMERICAN TRAVELLERS CORPORATION ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS
AMERICAN TRAVELLERS ANNOUNCES FIRST QUARTER RESULTS FOR 1992
AMERICAN TRAVELLERS CORPORATION ANNOUNCES SECOND QUARTER RESULTS
AMERICAN TRAVELLERS CORPORATION ANNOUNCES FOURTH QUARTER RESULTS
AMERICAN TRAVELLERS CORPORATION ANNOUNCES SECOND QUARTER AND SIX MONTH RESULTS
AMERICAN TRAVELLERS CORPORATION ANNOUNCES FIRST QUARTER RESULTS FOR 1994
AMERICAN TRAVELLERS CORPORATION ANNOUNCES RECORD THIRD QUARTER AND NINE MONTH RESULTS
AMERICAN TRAVELLERS CORPORATION ANNOUNCES FIRST QUARTER RESULTS FOR 1995
AMERICAN TRAVELLERS CORPORATION ANNOUNCES FIRST QUARTER RESULTS FOR 1995
AMERICAN TRAVELLERS CORPORATION ANNOUNCES RECORD THIRD QUARTER AND NINE MONTH RESULTS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters