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DELPHI FINANCIAL GROUP, INC. ANNOUNCES THIRD QUARTER EARNINGS

 WILMINGTON, Del., Oct. 25 /PRNewswire/ -- Delphi Financial Group, Inc. (NASDAQ-NMS: DLFI) today reported third quarter income before extraordinary items of $1.15 per share, a 16 percent increase over the $.99 per share for 1992's third and highest quarter.
 Total revenues for the period were $107.2 million compared to $101.9 million. For the nine months ended Sept. 30, 1993, total revenues were $310.7 million, an increase of 17 percent over 1992. Year-to-date earnings before extraordinary items and accounting changes were $3.43 per share, a 78 percent increase over the $1.93 per share earnings in 1992.
 Insurance premiums and policyholder fees for the three months ended Sept. 30, 1993, were $59.5 million, a 14 percent increase, compared to $52.2 million in 1992. Loss and expense ratios in the group lines have remained stable. Net investment income increased 20 percent to $41.7 million in the third quarter of 1993. Realized investment gains for the three and nine months ended Sept. 30, 1993, were $6 million and $13.5 million, respectively, compared to $14.9 million and $17 million in 1992. Realized investment gains in 1993 and 1992 were partially offset by $3.3 million and $7.2 million, respectively, in related accelerated amortization of cost of business acquired.
 Shortly after the third quarter, the company completed an offering of Class A Common Stock which netted proceeds of $35.8 million and the issuance of $85 million of Senior Notes due 2003 which netted proceeds of $82.4 million. Delphi plans to redeem all $87.8 million aggregate principal amount of its 11 3/4 percent Senior Subordinated Debentures with the net proceeds from these offerings and to reduce outstanding indebtedness under its bank credit agreement. The redemption of the 11 3/4 percent Senior Subordinated Debentures was previously announced and will be completed on Nov. 7, 1993. An extraordinary after-tax charge on early extinguishment of debt of $7.3 million associated with redemption premium and discount will be recognized at that time. On a pro forma basis, Delphi's interest expense will be reduced from approximately $20 million to $11 million annually.
 Robert Rosenkranz, chairman and chief executive officer, said, "Delphi's pre-tax income for the third quarter marks its highest ever in its nearly six-year history. All key financial indicators remain strong. Trailing 12 month earnings of $34.5 million ($3.37 per share) represent a return on equity of 28 percent. Interest coverage on a trailing twelve month basis is 4 times, and on a pro forma basis is double that due to the recapitalization plan. Our investment portfolio contains no real estate exposure and better than 96 percent of the bond portfolio is rated investment grade. Shareholders' equity of $159.9 million as of Sept. 30, 1993, has grown at a compounded rate of 39 percent since the formation of Delphi in 1987. Pro forma shareholders' equity reflecting the recapitalization is $188.4 million as of Sept. 30, 1993. Book value per share grew at a compounded rate of 37 percent since 1987 to $15.61 per share on a fully diluted basis."
 Delphi Financial Group, Inc. is an insurance holding company that underwrites, nationally through its principal subsidiary, Reliance Standard Life Insurance Company, a portfolio of life, long-term disability and personal accident insurance, targeted principally to the employee benefits market. It also operates an asset accumulation business, grown primarily through wholesale transactions and emphasizing intensive investment management. Delphi Financial Group, Inc.'s common stock (DLFI) is quoted through NASDAQ National Market System.
 DELPHI FINANCIAL GROUP, INC.
 Consolidated Statements Of Income
 (Unaudited; in thousands except per share data)
 Periods ended Three Months Nine Months 12 Months
 9/30/93 9/30/92 9/30/93 9/30/92 12/31/92 12/31/91
 Revenue:
 Insurance premium and
 policyholder fees:
 Group insurance $50,481 $45,772 $147,462 $128,565 $178,737 $154,316
 Asset accumulation
 products 3,301 953 5,115 2,160 3,086 8,020
 Individual
 products 5,694 5,443 16,241 15,831 21,065 18,063
 Total 59,476 52,168 168,818 146,556 202,888 180,399
 Net investment
 income 41,721 34,825 128,397 101,838 133,515 133,075
 Net realized
 investment gains 6,041 14,909 13,484 16,989 19,115 19,267
 Total 107,238 101,902 310,699 265,383 355,518 332,741
 Benefits and Expenses:
 Benefits, claims
 and interest
 credited to
 policyholders 58,751 55,376 175,525 158,436 215,643 217,444
 Amortization of
 cost of business
 acquired 9,173 12,998 22,702 21,756 29,421 19,954
 Other expenses 15,171 13,580 43,162 39,806 53,352 49,198
 Total 83,095 81,954 241,389 219,998 298,416 286,596
 Operating income
 before interest
 & taxes 24,143 19,948 69,310 45,385 57,102 46,145
 Interest expense 4,376 5,000 14,060 15,244 19,949 22,160
 Income taxes 7,874 5,083 19,938 10,129 12,513 7,195
 Income before
 extraordinary (losses)
 gains & cumulative
 effect of a change in
 accounting
 principle 11,893 9,865 35,312 20,012 24,640 16,790
 Extraordinary (losses)
 gains on early
 extinguishment
 of debt (2,290) --- (4,754) 253 (387) ---
 Cumulative effect
 of a change
 in accounting
 principle --- --- --- (594) (594) ---
 Net income $ 9,603 $9,865 $30,558 $19,671 $23,659 $16,790
 Income before
 extraordinary (losses)
 gains & cumulative
 effect of a change
 in accounting
 principle $1.15 $.99 $3.43 $1.93 $2.38 $1.42
 Net income .93 .99 2.97 1.90 2.29 1.42
 Weighted average
 shares
 outstanding 10,327 10,008 10,281 10,359 10,351 11,835
 Book value,
 period end $16.53 $12.89 $16.53 $12.89 $13.39 $11.97
 Fully diluted book
 value assuming
 exercise of options
 & warrants $15.61 $12.30 $15.61 $12.30 $12.67 $9.62
 /delval/
 -0- 10/25/93
 /CONTACT: Gerald R. Roop, director of Finance of Delphi Financial, 215-787-4274/
 (DLFI)


CO: Delphi Financial Group, Inc. ST: Delaware IN: INS SU: ERN

JM -- PH036 -- 6557 10/25/93 17:15 EDT
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Publication:PR Newswire
Date:Oct 25, 1993
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