Printer Friendly

INTEGON CORPORATION ANNOUNCES RECORD BREAKING THIRD QUARTER AND NINE MONTHS RESULTS

 INTEGON CORPORATION ANNOUNCES RECORD BREAKING
 THIRD QUARTER AND NINE MONTHS RESULTS
 WINSTON-SALEM, N.C., Oct. 29 /PRNewswire/ -- Integon Corporation (NYSE: IN) announced today that its pro forma operating earnings before investment gains for the third quarter ended Sept. 30, 1992, broke all previous records, increasing to $8.8 million, or 56 cents per share, compared with $3.0 million, or 19 cents per share, for the third quarter of 1991. Fueled by this significant rise in operating earnings, the company reported that its pro forma net income for the third quarter of 1992 totaled $11.2 million, or 71 cents per share, compared with $3.3 million, or 21 cents per share, for the same period last year.
 Total revenues for the third quarter of 1992 grew to $57.2 million, up 21.6 percent from $47.0 million for the same period of 1991. Nonstandard automobile insurance premiums written, generated from Integon's primary line of business, rose to $44.3 million for the quarter, an increase of 39.4 percent from the third quarter of 1991 total of $31.8 million.
 For the nine months ended Sept. 30, 1992, Integon reported pro forma operating earnings before investment gains of $21.7 million, or $1.37 per share, a 58.3 percent increase over its pro forma operating earnings of $13.7 million, or 86 cents per share, for the same period last year. Through the nine months ended September 30, Integon reported total pro forma net income of $25.0 million, or $1.58 per share, compared with $14.3 million, or 90 cents per share, for the nine months ended Sept. 30, 1991.
 Commenting on the strong performance, Integon Corporation President James Lambie said, "Contributors to the quarter's record earnings included solid increases in nonstandard automobile premiums written, a 39.4 percent increase over the same period in 1991, unusually favorable loss experience and Integon's continuing focus on cost control. Those operating factors, along with increased realized gains from the investment portfolio, combined to make this a record-breaking quarter."
 "The third quarter's growth in premiums was boosted by the continued, strong demand for Integon's nonstandard automobile insurance products in its North Carolina and Virginia markets," Lambie said, "and by excellent premium growth in Georgia, a state the company entered earlier this year."
 "Integon entered the Florida nonstandard automobile insurance market early in the fourth quarter," Lambie noted, "and though it is too early to assess results, we are encouraged by the reception we are receiving from Florida's independent agents."
 Financial results are reported on a pro forma, or adjusted, basis in order to provide a meaningful comparison between 1991 and 1992. For purposes of comparison, financial results have been adjusted to reflect the transaction earlier this year involving the initial public offering of common stock and the concurrent retirement of debt and the related write-off of deferred loan costs associated with that debt, as having all occurred on Jan. 1, 1991.
 Integon reported two extraordinary items during this accounting period. During the quarter, Integon issued $75 million of 8 percent Senior Notes, the proceeds of which were utilized to (1) retire the $40 million principal amount 15 percent Subordinated Note (2) pay off a $15.3 million 10 percent affiliated note, and (3) retire the Series B preferred stock. The 5 percent premium paid on the subordinated debt ($2.0 million, $1.3 million net of tax) was recorded as an extraordinary item. Also during the quarter, the company reduced its Obligation due Affiliate by $3.2 million ($2.1 million after tax) to $5.3 million. This reflects the company's most current estimate of the ultimate liabilities to be funded by this obligation for the auto warranty business sold to an affiliate in conjunction with the stock offering and restructuring that occurred in the first quarter of 1992.
 Integon Corporation, through its wholly owned property and casualty insurance subsidiaries, specializes in the underwriting and marketing of nonstandard automobile insurance to individuals. The company, headquartered in Winston-Salem, markets its products through over 2,800 independent agencies located in North Carolina, Virginia, Tennessee, Georgia and Florida.
 INTEGON CORPORATION AND SUBSIDIARIES
 Statements of Operations
 (Unaudited, in Thousands, Except Per Share Data)
 Pro Forma
 Three months ended Sept. 30: 1992 1991
 Direct Premiums Written $88,686 $73,851
 Net Premiums Written $51,321 $40,745
 Change in Unearned Premium (4,019) 43
 Premiums Earned 47,302 40,788
 Loss and Loss Adjustment Expenses 26,174 27,466
 Underwriting Expenses 10,698 10,003
 GAAP Underwriting Gain 10,430 3,319
 Net Investment Income 4,221 3,216
 Other Income, Primarily Financing 613 457
 Less: Amortization of Goodwill 408 435
 Interest Expense 1,955 1,983
 Pretax Operating Income 12,901 4,574
 Income Tax Expense 4,143 1,567
 Operating Earnings 8,758 3,007
 Net Realized Investment Gains 1,634 265
 Income before Extraordinary Items 10,392 3,272
 Extraordinary Items, net (A) 792 0
 Net Income $11,184 $3,272
 Per Share:
 Operating Earnings $0.56 $0.19
 Preferred Dividend (0.00) (0.00)
 Operating Earnings Available to
 Common 0.56 0.19
 Net Realized Investment Gains 0.10 0.02
 Income before Extraordinary Items 0.66 0.21
 Extraordinary Items, net 0.05 0.00
 Net Income Available to Common $0.71 $0.21
 Weighted Average Shares Outstanding 15,652 15,635
 (A) -- Extraordinary Items are as follows:
 Pre-Tax After Tax
 Premium paid on early extinguishment of
 15 percent subordinated note ($2,000) ($1,320)
 Reduction of Obligation due Affiliate 3,200 2,112
 Total $1,200 $792
 Nine months ended Sept. 30: 1992 1991
 Direct Premiums Written $256,186 $224,763
 Net Premiums Written 142,636 126,323
 Change in Unearned Premium (9,826) (8,038)
 Premiums Earned 132,810 118,285
 Loss and Loss Adjustment Expenses 74,216 75,059
 Underwriting Expenses 33,399 27,006
 GAAP Underwriting Gain 25,195 16,220
 Net Investment Income 12,406 9,838
 Other Income, Primarily Financing 1,707 2,102
 Less: Amortization of Goodwill 1,238 1,306
 Interest Expense 5,842 5,739
 Pretax Operating Income 32,228 21,115
 Income Tax Expense 10,522 7,406
 Operating Earnings 21,706 13,709
 Net Realized Investment Gains 2,540 588
 Income before Extraordinary Items 24,246 14,297
 Extraordinary Items, net (A) 792 0
 Net Income $25,038 $14,297
 Per Share:
 Operating Earnings $1.39 $0.88
 Preferred Dividend (0.02) (0.02)
 Operating Earnings Available to
 Common 1.37 0.86
 Net Realized Investment Gains 0.16 0.04
 Income before Extraordinary Items 1.53 0.90
 Extraordinary Items, net 0.05 0.00
 Net Income Available to Common $1.58 $0.90
 Weighted Average Shares Outstanding 15,643 15,635
 (A) -- Extraordinary Items are as follows:
 Pre-Tax After Tax
 Premium paid on early extinguishment of
 15 percent subordinated note ($2,000) ($1,320)
 Reduction of Obligation due Affilliate 3,200 2,112
 Total $1,200 $792
 INTEGON CORPORATION AND SUBSIDIARIES
 Statements of Operations
 (Unaudited, in Thousands, Except Per Share Data)
 Historical
 Three months ended Sept. 30: 1992 1991
 Direct Premiums Written $88,686 $73,851
 Net Premiums Written $51,321 $40,745
 Change in Unearned Premium (4,019) 43
 Premiums Earned 47,302 40,788
 Loss and Loss Adjustment Expenses 26,174 27,466
 Underwriting Expenses 10,698 10,003
 GAAP Underwriting Gain 10,430 3,319
 Net Investment Income 4,221 3,061
 Other Income, Primarily Financing 613 457
 Less: Amortization of Goodwill 408 435
 Interest Expense 1,955 3,704
 Pretax Operating Income 12,901 2,698
 Income Tax Expense 4,143 928
 Operating Earnings 8,758 1,770
 Net Realized Investment Gains 1,634 265
 Income of Continuing P&C Business 10,392 2,035
 Income of Non-P&C Business Sold 0 1,877
 Extraordinary Items, Net (A) 792 0
 Net Income $11,184 $3,912
 Per Share:
 Operating Earnings $0.56 $0.22
 Preferred Dividend (0.00) (0.01)
 Operating Earnings Available to Common 0.56 0.21
 Net Realized Investment Gains 0.10 0.03
 Income of Continuing P&C Business 0.66 0.24
 Income of Non-P&C Business Sold 0.00 0.22
 Extraordinary Items, Net 0.05 0.00
 Net Income Available to Common $0.71 $0.46
 Weighted Average Shares Outstanding 15,652 8,199
 (A) -- Extraordinary Items are as follows:
 Three Months Ended 9/30/92 Pre-Tax After Tax
 Premium paid on early extinguishment of
 15 percent Subordinated Note ($2,000) ($1,320)
 Reduction of Obligation due Affiliate 3,200 2,112
 Charge off of unamortized Deferred
 Loan Cost associated with debt
 repaid 0 0
 Total $1,200 $792
 Historical
 Nine months ended Sept. 30: 1992 1991
 Direct Premiums Written $256,186 $224,763
 Net Premiums Written $142,636 $126,323
 Change in Unearned Premium (9,826) (8,038)
 Premiums Earned 132,810 118,285
 Loss and Loss Adjustment Expenses 74,216 75,059
 Underwriting Expenses 33,399 27,006
 GAAP Underwriting Gain 25,195 16,220
 Net Investment Income 12,200 9,035
 Other Income, Primarily Financing 1,707 2,102
 Less: Amortization of Goodwill 1,238 1,306
 Interest Expense 6,536 10,923
 Pretax Operating Income 31,328 15,128
 Income Tax Expense 10,236 5,370
 Operating Earnings 21,092 9,758
 Net Realized Investment Gains 2,540 588
 Income of Continuing P&C Business 23,632 10,346
 Income of Non-P&C Business Sold (195) 13,161
 Extraordinary Items, Net (A) (1,349) 0
 Net Income $22,088 $23,507
 Per Share:
 Operating Earnings $1.49 $1.19
 Preferred Dividend (0.02) (0.02)
 Operating Earnings Available to Common 1.47 1.17
 Net Realized Investment Gains 0.18 0.07
 Income of Continuing P&C Business 1.65 1.24
 Income of Non-P&C Business Sold (0.02) 1.58
 Extraordinary Items, Net (0.09) 0.00
 Net Income Available to Common $1.54 $2.82
 Weighted Average Shares Outstanding 14,116 8,199
 Nine months ended 9/30/92 Pre-Tax After Tax
 Premium paid on early extinguishment of
 15 percent Subordinated Note ($2,000) ($1,320)
 Reduction of Obligation due Affiliate 3,200 2,112
 Charge off of unamortized Deferred
 Loan Cost associated with debt
 repaid (3,211) (2,141)
 Total ($2,011) ($1,349)
 -0- 10/29/92
 /CONTACT: Turner Coley, 919-760-3000, or (investors) Gay Huntsman, 919-770-3074, both of Integon Corporation/
 (IN) CO: Integon Corporation ST: North Carolina IN: INS SU: ERN


TS -- NY008 -- 6430 10/29/92 09:19 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:Oct 29, 1992
Words:1755
Previous Article:OMEGA FINANCIAL ANNOUNCES STOCK DIVIDEND
Next Article:GLOBAL MARINE ANNOUNCES AGREEMENTS FOR DEBT REPURCHASE
Topics:


Related Articles
INTEGON CORPORATION REPORTS INCREASE IN SECOND QUARTER NET INCOME
INTEGON CORPORATION ANNOUNCES FIRST QUARTER 1994 RESULTS NONSTANDARD AUTO PREMIUMS RISE 25.4 PERCENT
INTEGON CORPORATION EXPECTS LOWER THIRD QUARTER EARNINGS
INTEGON CORPORATION ANNOUNCES ESTIMATE OF THIRD QUARTER EARNINGS
INTEGON ANNOUNCES THIRD QUARTER 1994 RESULTS
INTEGON CORPORATION ANNOUNCES FIRST QUARTER 1995 RESULTS
INTEGON CORPORATION ANNOUNCES THIRD QUARTER 1995 RESULTS
INTEGON CORPORATION ANNOUNCES PRELIMINARY FIRST QUARTER RESULTS
Integon Corporation Reports Losses Due to Hurricanes
Integon Corporation Announces Second Quarter 1997 Results

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