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INTEGON CORPORATION REPORTS INCREASE IN FIRST QUARTER NET INCOME

 WINSTON-SALEM, N.C., April 29 /PRNewswire/ - Integon Corporation (NYSE: IN) announced today that its net income for the first quarter of 1993 totaled $13.1 million, up 93.2 percent from last year's pro forma net income total of $6.8 million. Net income per share was 75 cents, an increase of 92.3 percent over 39 cents reported last year. The Company's operating earnings for the first quarter of 1993, excluding gains realized from the sale of investments, reached $10.9 million, or 63 cents per share, an increase of 70.4 percent over the $6.4 million pro forma total, or 37 cents per share, reported for the same quarter last year.
 On Monday, April 26, 1993, the North Carolina Insurance Commissioner announced a settlement with the North Carolina Rate Bureau of the disputed premium rates for the 1987, 1988, 1989 and 1991 auto rate filings. The settlement requires refunds of the disputed premiums for the 1989 auto rate filing to North Carolina insureds of approximately $80.0 million in total for all licensed North Carolina automobile insurance companies. In previous years, Integon had provided for $7.2 million in possible settlement refunds and related expenses for these cases. Although the Company's share of the settlement cannot be accurately determined at this time, first quarter earnings reflect a reversal of $4.3 million of the $7.2 million provided for all years since the settlement requires refunds for only one of the years in dispute. Operating earnings for the quarter excluding this reserve release were 46 cents per share, up 24.3 percent from the pro forma amount for first quarter 1992.
 "Integon continues to see excellent results from its focus on nonstandard automobile insurance and continued favorable loss experience as well as providing superior service to our independent agents and their clients," said Integon Corporation President James T. Lambie. "Each is an important contributor to the Company's commitment to growth with profitability."
 Total revenues for the quarter rose to $62.8 million, up 30.3 percent from last year's reported pro forma total of $48.2 million, boosted primarily by significant contributions from Integon's newest nonstandard automobile insurance markets in Georgia and Florida, and by the Company's continued solid performance in its North Carolina and Virginia markets. Premiums earned on nonstandard automobile insurance were $44.8 million, an increase of 33.1 percent over first quarter 1992. Other contributors included increases in investment income, revenues from premium financing and gains from the sale of investments.
 Despite storms throughout the Southeast in March, Integon's GAAP combined ratio at 74.0 percent (82.3 percent excluding the rate dispute reserve release) continues to reflect operating costs that are well below industry averages. The combined ratio measures a property and casualty insurance company's overall performance in managing its claims and expenses.
 Financial results for 1992 were reported on a pro forma, or adjusted, basis to reflect the transaction in February 1992 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 occurred at the beginning of the year.
 Integon Corporation, through its wholly-owned property and casualty insurance subsidiaries, specializes in the underwriting and marketing of specialty automobile insurance products to individuals. The Company, headquartered in Winston-Salem, North Carolina, markets its products through over 2,900 independent agencies located in North Carolina, Virginia, Tennessee, Georgia and Florida.
 INTEGON CORPORATION AND SUBSIDIARIES
 STATEMENTS OF OPERATIONS
 (In Thousands, Except Per Share Data)
 (Unaudited)
 Three Months Ended
 3/31/93 3/31/92
 Direct premiums written $99,914 $81,225
 Net premiums written $59,847 $40,701
 Change in unearned premium (8,194) 106
 Premiums earned 51,653 40,807
 Net investment income 4,663 3,738
 Net realized investment gains 3,194 504
 Other income, primarily financing revenue 3,245 2,922
 TOTAL REVENUES 62,755 47,971
 Loss and loss adjustment expenses 29,186 23,129
 Policy acquisition and other underwriting exp 9,018 10,222
 Other expenses, primarily financing expenses 3,197 2,455
 Amortization of goodwill 402 419
 Interest expense 1,550 2,628
 TOTAL EXPENSES 43,353 38,853
 INCOME FROM OPERATIONS BEFORE
 FEDERAL INCOME TAXES 19,402 9,118
 Federal income taxes 6,350 2,975
 INCOME OF CONTINUING OPERATIONS 13,052 6,143
 Loss of businesses sold - (195)
 Extraordinary loss - (2,141)
 NET INCOME $13,052 $3,807
 Operating earnings $10,944 $5,810
 Net realized investment gains 2,108 333
 Loss of businesses sold - (195)
 Extraordinary loss - (2,141)
 NET INCOME $13,052 $3,807
 PER SHARE: (adjusted for Dec. 1992 stock dividend)
 Operating earnings $0.63 $0.45
 Preferred dividend 0.00 (0.01)
 Operating earnings available to common 0.63 0.44
 Net realized investment gains 0.12 0.02
 Income of continuing operations 0.75 0.46
 Loss of businesses sold 0.00 (0.02)
 Extraordinary loss 0.00 (0.16)
 Net income available to common $0.75 $0.28
 Weighted average shares outstanding 17,486 12,999
 PRO FORMA RESULTS PREVIOUSLY REPORTED FOR 3/31/92
 Total Revenues $48,177
 Operating earnings $6,424
 Net realized investment gains 333
 NET INCOME $6,757
 PER SHARE: (adjusted for Dec.
 1992 stock dividend)
 Operating earnings $ 0.38
 Preferred dividend (0.01)
 Operating earnings available to common 0.37
 Net realized investment gains 0.02
 Income of continuing operations $0.39
 Weighted average shares outstanding 17,198
 Adjusted to reflect the February 1992 inital public offering and restructuring as having occurred at the beginning of the year.
 -0- 4/29/93
 /CONTACT: (Analysts) Gay Huntsman, 919-770-3074, or (Media) Turner Coley, 919-760-3000, both of Integon Corporation/
 (IN)


CO: Integon Corporation ST: North Carolina IN: INS SU: ERN

CM -- CH002 -- 2398 04/29/93 07:10 EDT
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Date:Apr 29, 1993
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