Printer Friendly

NUCORP REPORTS 29 PERCENT INCREASE IN FIRST QUARTER EARNINGS PER SHARE

 CHICAGO, May 6 /PRNewswire/ -- Nucorp Inc. (NASDAQ: NUCO) today reported first quarter net income of $3.4 million compared to net income of $1.6 million during the same period last year. Fully diluted earnings per share increased 29 percent to 22 cents compared to 17 cents last year.
 Pretax income, exclusive of realized investment gains (losses) and amortization of goodwill and intangibles, rose to $6.6 million, or 43 cents per share, from $2.6 million, or 24 cents per share, for 1992.
 Due to the Aug. 14, 1992 acquisition of Western Surety Co., consolidated revenues rose 235 percent in the first quarter of 1993 to $26.5 million from $7.9 million in 1992.
 "We are extremely pleased with our first quarter results," stated Bruce Esselborn, president of the company. "Western Surety continued to show revenue gains, exceptional underwriting results and stable operating profits. At United Capitol, soft market conditions persist, but continued favorable development of losses helped us to generate higher first quarter pretax income in 1993."
 Direct written premiums increased to $27.2 million for the first quarter 1993 from $6.4 million in 1992. Western Surety accounted for substantially all of the increase. Premium volume at United Capitol was level with 1992 reflecting continuing soft market conditions in the commercial casualty insurance market.
 Net investment income from insurance operations rose to $5.0 million from $3.2 million last year.
 The statutory combined ratio for Western Surety was 77.9 percent in 1993, compared to 81.1 percent in 1992. The statutory loss ratio was 17.0 percent in 1993, compared to 14.8 percent in 1992. The statutory expense ratio was 60.9 percent in 1993 and 66.3 percent in 1992. The decrease in the expense ratio resulted principally from compensation savings relating to Western Surety's previous owners.
 United Capitol's statutory combined ratio was 75.5 percent in 1993, compared to 81.4 percent in 1992. The statutory loss ratio in 1993 was 49.7 percent compared to 60.7 percent in 1992 while the statutory expense ratio was 25.8 percent in 1993 and 20.7 percent in 1992. United Capitol continued in the first quarter of 1993 to experience favorable development of its prior years' losses and loss adjustment expenses.
 Nucorp adopted SFAS 109 - Accounting for Income Taxes effective Jan. 1, 1993 and the company has elected to restate prior years' financial statements for the effects of SFAS 109. Under SFAS 109, the company has recorded a deferred tax asset (net of a valuation allowance) of $50.4 million related to the remaining available net operating loss carryforwards and a corresponding credit to additional paid-in capital.
 Nucorp, an acquisition company, is involved primarily in specialty property and casualty insurance, through United Capitol Insurance Co. and Western Surety Co. United Capitol is rated A- (Excellent) by A.M. Best Co., and conducts business principally as an excess and surplus lines insurer in all 50 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico. Western Surety Co., a leading writer of small fidelity and non-contract surety bonds, is rated A+ (Superior) by A.M. Best and is licensed in all 50 states and the District of Columbia.
 NUCORP, INC.
 March 31 1993 1992
 Operating Data:
 Direct written premiums $27,167 $ 6,414
 Net written premiums $24,473 $ 4,170
 Income Statement Data:
 Net earned premiums $20,904 $ 3,749
 Net investment income 4,971 3,197
 Realized investment gains (5) 33
 Corporate & other income 670 951
 Total revenues 26,540 7,930
 Insurance Expenses:
 Net losses & loss adjustment 4,783 2,275
 Net commissions, brokerage & other 12,813 894
 Interest 1,672 929
 Amortization of intangibles 634 0
 Amortization of goodwill 402 149
 Corporate & other expenses 705 1,244
 Total expenses 21,009 5,491
 Income before taxes 5,531 2,439
 Income taxes 2,117 829
 Net income $ 3,414 $ 1,610
 Weighted average number of
 common and common equivalent
 shares outstanding 15,384 10,608
 Fully diluted net income per share $0.22 $0.17
 -0- 5/6/93
 /CONTACT: Kirk Brewer, 312-258-4359 or Susan Obuchowski, 312-466-4010, both for Nucorp Inc./
 (NUCO)


CO: Nucorp Inc. ST: Illinois IN: INS SU: ERN

TS -- NY011 -- 5198 05/06/93 08:07 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 6, 1993
Words:713
Previous Article:SHARP DEBUTS NATION'S FIRST FAX WITH DUPLEX FAXING CAPABILITY
Next Article:COLUMBIA HOSPITAL CORPORATION REPORTS 126.3 PERCENT GROWTH IN FIRST QUARTER NET INCOME; REVENUES & EARNINGS PER SHARE REACH RECORD LEVELS
Topics:


Related Articles
NUCORP ANNOUNCES A 37 PERCENT INCREASE IN YEAR END EARNINGS
NUCORP REPORTS 15 PERCENT INCREASE IN FIRST QUARTER NET INCOME
NUCORP REPORTS 14 PERCENT INCREASE IN SECOND QUARTER AND SIX-MONTH NET INCOME
3.5 MILLION NUCORP SHARES SOLD
NUCORP REPORTS RESULTS
AMERICAN HERITAGE LIFE REPORTS RECORD FIRST QUARTER EARNINGS; DIRECTORS VOTE 3-FOR-2 STOCK SPLIT AND 7 PERCENT CASH DIVIDEND INCREASE
HCC INSURANCE HOLDINGS, INC. REPORTS 1995 SECOND QUARTER AND SIX MONTHS EARNINGS
EXEL LIMITED REPORTS FIRST QUARTER 1996 EARNINGS
GUARANTY NATIONAL CORPORATION REPORTS FIRST QUARTER NET EARNINGS OF $5.8 MILLION; OVERALL COMPANY COMBINED RATIO IMPROVES TO 101.6 PERCENT
HCC Insurance Holdings, Inc. Reports 1996 Second Quarter and Six Months Earnings

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