KENTUCKY CENTRAL LIFE INSURANCE COMPANY REPORTS RESULTS
LEXINGTON, Ky., Nov. 15 /PRNewswire/ -- Kentucky Central Life Insurance Company (NASDAQ: KENCA) has reported excellent increases in net income for the third quarter and first nine months of 1991, and a significant strengthening of its financial condition.
For the quarter ended Sept. 30, 1991, the company had net income of $8.1 million, compared to $4.2 million for the third quarter of 1990, an increase of 92 percent. On a per share basis, net income increased from 31 cents to 61 cents.
Net income for the first nine months of 1991 was $22.6 million, compared to $17.9 million for the corresponding period in 1990, an increase of 26 percent. On a per share basis, net income increased from $1.32 to $1.69.
Net income includes provision for federal and state income taxes.
Third quarter results included the sale of Kentucky Finance Co., Inc., a subsidiary company, to The Associates Corporation of North America, for $145 million. Also in the third quarter, the company increased its provision for possible future mortgage loan and real estate losses by $35 million.
W.E. Burnett, Jr., chairman of the board and president of Kentucky Central, said the sale of Kentucky Finance, plus the sale of a block of home service insurance policies in the second quarter, has greatly strengthened the company's financial condition.
Although liquidity levels are hurting some insurers, Burnett said this was not a problem at Kentucky Central. "Our cash and equivalent funds at September 30 totaled $110.8 million. These funds are more than sufficient to meet all obligations. In addition, we have a sound foundation for growth, as economic conditions improve in the nation."
Capital and surplus funds totaled $340.1 million at September 30, compared to $318.8 million at the end of 1990, an increase of 7 percent.
At September 30, the company had consolidated assets of $1.9 billion, compared to $2.1 billion on the same date a year ago. The 9 percent decline is attributed to the sale of Kentucky Finance and the home service insurance policies.
Liabilities and minority interest was $1.6 billion at September 30, a decline of 11 percent from the $1.8 billion total a year ago.
Kentucky Central had $53.1 billion of life insurance in force at September 30. Life insurance sales for the first nine months of 1991 totaled $8.5 billion, with $2.5 billion of sales in the third quarter.
Total revenue for the first nine months of the year was $342.9 million, compared to $288.9 million for the same period a year ago, an increase of 19 percent.
Nine-month revenue by category is as follows: Insurance premiums, $123.4 million; policy charges from Universal Life and other investment contracts, $71.4 million; investments, $71.2 million; realized investment gains, $60.7 million; and other, $16.2 million.
All figures are reported on the basis of generally accepted accounting principles ("GAAP"). Per share computations are based on a weighted average of 13,408,542 shares outstanding at Sept. 30, 1991, and 13,532,977 shares outstanding on that date a year ago.
All figures are on a consolidated basis of Kentucky Central Life Insurance Company and its subsidiaries, which are Mid-Central Investment Co., Inc.; Bluegrass Broadcasting Co., Inc.; Brevard Groves, Inc.; Kentucky Central Insurance Company; Kentucky National Insurance Company; ARIC Investments, Inc.,; American Resources Insurance Company; and M-C Realty, Inc.
/CONTACT: Brent A. Clay, Vice President, Kentucky Central Life Insurance Company, 606-253-5271/
(KENCA) CO: Kentucky Central Life Insurance Company ST: Kentucky IN: INS SU: ERN DF -- CH003 -- 1511 11/15/91 11:44 EST