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ORION CAPITAL CORPORATION REPORTS RESULTS FOR THE THIRD QUARTER OF 1992

ORION CAPITAL CORPORATION REPORTS RESULTS FOR THE THIRD QUARTER OF 1992
 NEW YORK, Nov. 3 /PRNewswire/ -- Orion Capital Corporation (NYSE: OC) announced today that, for the quarter ended Sept. 30, 1992, net earnings increased to $12,718,000, or $1.62 per share based upon 6,760,000 weighted average primary common shares outstanding from $9,238,000, or $1.16 per share based upon 6,387,000 weighted average primary common shares outstanding for the third quarter of 1991.
 After-tax investment gains were $3,359,000, or $.50 per share, in the third quarter of 1992, versus $144,000, or $.02 per share, in 1991s third quarter. During the third quarter of 1992, the company incurred an extraordinary charge of $106,000 or $.02 per share, relating to the early extinguishment of debt. Excluding investment gains and the extraordinary item, earnings from insurance operations increased to $9,465,000 in the third quarter of 1992, from $9,094,000 in 1991s third quarter, or $1.14 per share in each period.
 Losses incurred by the company's reinsurance unit from Hurricane Andrew affected after-tax earnings by $1,024,000, or $.15 per share, in the 1992 quarter.
 On a year-to-date basis, net earnings for 1992 increased to $33,338,000, or $4.23 per share, based upon 6,613,000 weighted average primary common shares outstanding, from $28,472,000 or $3.61 per share, based upon 6,373,000 weighted average primary common shares outstanding in 1991.
 After-tax investment gains (losses) were $3,339,000, or $.51 per share, and $(129,000), or $(.02) per share, in the first nine months of 1992 and 1991, respectively. The extraordinary item was the same amount for both the nine months and third quarter of 1992. Earnings from insurance operations for the nine months ended Sept. 30, 1992 and 1991 were $30,105,000, or $3.74 per share, and $28,601,000 or $3.63 per share, respectively.
 Fully-diluted net earnings amounted to $1.32 per share based upon 9,343,000 fully-diluted shares and $.98 per share based upon 9,023,000 fully-diluted shares for the three months ended Sept. 30, 1992 and 1991, respectively. Fully-diluted earnings from insurance operations amounted to $.97 per share and $.96 per share, for the quarters ended Sept. 30, 1992 and 1991, respectively. After-tax investment gains per fully- diluted share amounted to $.36 and $.02 in the third quarter of each year, respectively. On a fully-diluted basis, the Hurricane Andrew losses and the extraordinary item were $.11 and $.01 per share, respectively, for the quarter ended Sept. 30, 1992.
 Year-to-date, fully-diluted net earnings amounted to $3.49 per share and $3.02 per share, based upon 9,210,000 and 9,022,000 fully-diluted shares, for the first nine months of 1992 and 1991, respectively. After-tax investment gains (losses) per fully-diluted share amounted to $.36 and $(.01) for the first nine months of each year, respectively, and the extraordinary item amounted to $.01 per share in the 1992 period. Earnings from insurance operations amounted to $3.14 per share and $3.03 per share, for the first nine months of 1992 and 1991, respectively.
 On Nov. 20, 1991, the company sold slightly more than half of Guaranty National Corporation in a public offering. The company no longer consolidates Guaranty National's accounts with those of the company, but rather records its interest in the earnings of Guaranty National on a one-line "equity accounting" basis, which for the third quarter and first nine months of 1992 amounted to $2,110,000 and $7,452,000, respectively.
 The combined ratio of the company's insurance subsidiaries, computed on a generally accepted accounting principles (GAAP) basis, for the third quarter of 1992 was 103.5 percent before policyholders' dividends and 106.1 percent after policyholders' dividends, versus 103.1 percent before policyholders' dividends and 106.0 percent after policyholders dividends in 1991s third quarter. Hurricane Andrew increased the company's combined ratio by .9 percentage points in the third quarter of 1992. For the nine months ended Sept. 30, 1992 and 1991, the company's GAAP combined ratios were 103.5 percent and 103.3 before policyholders' dividends, and 105.6 percent and 105.8 percent after policyholders' dividends, respectively. The combined ratios after policyholders' dividends for the third quarter and nine months of 1991 would have been 107.3 percent and 108.1 percent, respectively, without the inclusion of Guaranty National's underwriting results.
 Reflecting the impact of the deconsolidation of Guaranty National, net written premiums decreased to $142,592,000 in the third quarter of 1992 versus $204,872,000 for the same period in 1991. Third quarter total revenues amounted to $159,461,000 and $209,863,000 in 1992 and 1991, respectively. Net investment income was $20,630,000 for the quarter ended Sept. 30, 1992, compared with $24,850,000 in 1991s third quarter. Cash flow from operations for the third quarter of 1992 amounted to $39,586,000, compared to $38,888,000 in 1991s third quarter. Cash and invested assets totalled $1,172,910,000 at Sept. 30, 1992 and $1,087,454,000 at Dec. 31, 1991.
 For the nine months ended Sept. 30, 1992, written premiums were $414,832,000 and total revenues were $479,812,000. This compares with written premiums of $581,715,000 and total revenues of $628,027,000 in the same period of the prior year, which amounts included the net written premiums and total revenues of Guaranty National. Net investment income was $61,003,000 and $75,340,000 for the first nine months of 1992 and 1991, respectively.
 Shareholders' equity totalled $301,559,000 at Sept. 30, 1992, or $35.69 per common share on 6,737,000 shares outstanding, compared with $234,249,000, or $27.18 per common share, based on 6,329,000 shares outstanding, at Sept. 30, 1991.
 Tax benefits generated from amortization of the "fresh start" adjustment available to the company under the Tax Reform Act of 1986 were $316,000 and $490,000, or $.05 and $.08 per primary common share, and $.03 and $.05 per fully diluted share, for the third quarter of 1992 and 1991, respectively.
 Orion Capital is engaged in the specialty property and casualty insurance business through various wholly owned insurance subsidiaries, and through its 49.3 percent-ownership interest in Guaranty National Corporation.
 ORION CAPITAL CORPORATION
 Income Statement Data
 (Unaudited -- 000's omitted) (A)
 Periods ended Three months Nine months
 Sept. 30 1992 1991 1992 1991
 Revenues $159,461 $209,863 $479,812 $628,027
 Earnings from insurance
 operations 9,465 9,094 30,105 28,601
 After-tax investment
 gains (losses) 3,359 144 3,339 (129)
 Extraordinary item (106) -- (106) --
 Net earnings 12,718 9,238 33,338 28,472
 Per Primary Common Share:
 Earnings from insurance
 operations $1.14 $1.14 $3.74 $3.63
 After-tax investment gains
 (losses) .50 .02 .51 (.02)
 Extraordinary item (.02) -- (.02) --
 Net earnings 1.62 1.16 4.23 3.61
 Weighted average common
 shares outstanding 6,760 6,387 6,613 6,373
 Per fully-diluted common share:
 Earnings from insurance
 operations $.97 $.96 $3.14 $3.03
 After-tax investment gains
 (losses) .36 .02 .36 (.01)
 Extraordinary item (.01) -- (.01) --
 Net earnings 1.32 .98 3.49 3.02
 Weighted average common shares
 outstanding 9,343 9,023 9,210 9,022
 BALANCE SHEET DATA
 Shareholders' equity at
 Sept. 30 $301,559 $234,249
 Book value per common share at
 Sept. 30 $35.69 $27.18
 Common shares outstanding at
 Sept. 30 6,737 6,329
 (A) Except per share data.
 -0- 11/3/92
 /CONTACT: Vincent T. Papa of Orion Capital Corporation, 212-332-8080, or Robert D. Siegfried of Kekst & Company, 212-593-2655, for Orion Capital Corporation/
 (OC) CO: Orion Capital Corporation ST: New York IN: INS SU: ERN


PS-LR -- NY016 -- 2024 11/03/92 11:18 EST
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