Holdings' second quarter earnings moved earlier today, deleting an incorrect reference to property and casualty insurance catastrophe losses./
RELIANCE REPORTS SECOND QUARTER RESULTS NEW YORK, Aug. 4 /PRNewswire/ -- Reliance Group Holdings, Inc.
(NYSE: REL) today reported income from continuing operations of $29.7 million, or $.33 per share, for the second quarter of 1993, compared with income from continuing operations of $6.2 million, or $.08 per share, in the second quarter of 1992. Net income for the second quarter of 1993 was $29.7 million, or $.33 per share, compared with net income of $23.8 million, or $.31 per share, in the 1992 period, which included income from discontinued operations of $14.1 million, or $.19 per share, and an extraordinary gain of $3.5 million, or $.04 per share, from early retirement of debt. Revenues for the second quarter of 1993 totaled $762.3 million, versus $678.9 million in the prior-year period.
For the first six months of 1993, Reliance reported income from continuing operations of $42.0 million, or $.47 per share, compared with income from continuing operations of $10.2 million, or $.14 per share, in the first six months of 1992. Net income for the first six months of 1993 was $57.9 million, or $.65 per share, compared with net income of $42.6 million, or $.57 per share, in the first six months of 1992. Net income for the 1993 period included a one-time benefit of $15.9 million, or $.18 per share, from an accounting change related to income taxes. Net income for the 1992 period included income from discontinued operations of $29.0 million, or $.38 per share. Revenues for the first six months of 1993 totaled $1.44 billion, versus $1.33 billion in the 1992 period. Commenting on the company's performance, Saul P. Steinberg, chairman and chief executive officer, said: "The significant year-to-year improvement in results from continuing operations in the second quarter was attributable to improved operating performance of our insurance businesses and a higher level of realized gains from the sale of investments, principally equity securities." Reliance said its property and casualty insurance operating results benefited from higher net investment income in the quarter, including investment income on the proceeds from the sale of Frank B. Hall & Co. Inc. in November 1992. Property and casualty operations produced a combined ratio (the ratio of claims and expenses to earned premiums) of $108.1 percent in the quarter, compared with 107.7 percent in the prior- year period. Title insurance profits also were up in the quarter, as Commonwealth Title and Transamerica Title continued to benefit from a surge in residential refinancing activity throughout the country. Income from discontinued operations in the 1992 second quarter and six month periods includes the results of Frank B. Hall & Co. and United Pacific Life Insurance Company, both of which were sold as part of Reliance's strategic realignment of its operations to focus on core businesses and improve the quality of its statutory capital. Headquartered in New York City, Reliance Group Holdings, Inc. has major operations in property and casualty insurance and title insurance. Total 1992 revenues were $2.76 billion and assets at year end were $8.19 billion. RELIANCE GROUP HOLDINGS, INC. AND SUBSIDIARIES Consolidated Statement of Income (In thousands, except per-share amounts - Unaudited) Periods ended Quarter Six months June 30 1993 1992 1993 1992 Revenues: Premiums earned $634,405 $578,759 $1,184,433 $1,135,834 Net investment income 61,300 52,969 124,033 106,012 Gain on sales of investments 35,195 17,494 70,777 30,711 Other 31,363 29,713 60,360 58,459 Total 762,263 678,935 1,439,603 1,331,016 Claims and expenses: Policy claims and settlement expenses 338,648 309,387 636,504 621,674 Policy acquisition costs and other insurance expenses 317,158 288,793 612,680 561,477 Interest 27,055 28,094 54,608 57,202 Other operating expenses 43,700 47,239 83,023 83,498 Total 726,561 673,513 1,386,815 1,323,851 Income from continuing operations before income taxes, minority interests and equity in investee company 35,702 5,422 52,788 7,165 Income tax (provision) benefit (10,000) 28 (15,300) 1,245 Minority interests (992) (932) (1,922) (1,902) Equity in investee company 4,972 1,727 6,472 3,684 Income from cont. opers. 29,682 6,245 42,038 10,192 Income from discont. life insurance operations -- 13,008 -- 22,224 Income from discontinued insurance brokerage operations -- 1,077 -- 6,753 Income before extraord. item and cumulative effect of change in accounting for income taxes 29,682 20,330 42,038 39,169 Extraord. item - early extinguishment of debt -- 3,460 -- 3,460 Cumulative effect of change in accounting for income taxes -- -- 15,911 -- Net income $29,682 $23,790 $57,949 $42,629 Per-share information: Income from cont. opers. $0.33 $0.08 $0.47 $0.14 Income from discont. opers. -- 0.19 -- 0.38 Income before extraord. item and cumulative effect of change in accounting for income taxes 0.33 0.27 0.47 0.52 Extraord. item - early extinguishment of debt -- 0.04 -- 0.05 Cumulative effect of change in accounting for income taxes -- -- 0.18 -- Net income $0.33 $0.31 $0.65 $0.57 Average number of common and common equivalent shares outstanding $89,604 $75,619 $89,287 $74,757 -0- 8/4/93 /CONTACT: Brian T. Martin, vice president communications of Reliance Group Holdings, Inc., 212-909-1247/ (REL)
CO: Reliance Group Holdings, Inc. ST: New York IN: INS SU: ERN
SM-OS -- NY035A -- 9507 08/04/93 16:06 EDT
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|Date:||Aug 4, 1993|
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