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RELIANCE REPORTS 1992 FINANCIAL RESULTS; ANNOUNCES AGREEMENT TO SELL ITS LIFE INSURANCE OPERATIONS

 NEW YORK, April 5 /PRNewswire/ -- Reliance Group Holdings, Inc. (NYSE: REL), today reported financial results for 1992, including the effect of the sale of its United Pacific Life Insurance Company ("UPL") subsidiary as part of its strategic plan to strengthen the capital base of its property and casualty business.
 Reliance said it has signed a definitive agreement for the sale of UPL to General Electric Capital Corporation for total estimated consideration of $550 million. Reliance disclosed last week that it was negotiating for the sale of UPL. Reliance said the previously disclosed litigation relating to this transaction is being terminated.
 In connection with the transaction announced today, approximately $570 million of UPL's assets will be purchased by Reliance at market value. The sale of UPL is subject to regulatory clearances and other customary closing conditions and is expected to be completed in the third quarter of 1993.
 UPL has been classified as a discontinued operation in Reliance's 1992 financial statements. For 1992, UPL had revenues of $680.3 million and assets at year end of $6.20 billion.
 The sale will increase the statutory surplus of Reliance Insurance Company, the direct parent of UPL, by $61.0 million from the year end 1992 level of $857.6 million. However, because of the higher carrying value of UPL for GAAP accounting, the transaction resulted in a charge against earnings of Reliance Group Holdings of $100.0 million in the fourth quarter of 1992. The charge was partially offset by a $40.0 million gain from the sale of Reliance's investment in Frank B. Hall & Co. Inc.
 As a result of the charge, Reliance reported a net loss of $79.6 million, or $1.00 per share, in the fourth quarter of 1992 on revenue of $752.2 million. In the 1991 fourth quarter, Reliance reported a net loss of $10.0 million, or $.14 per share, on revenues of $716.9 million.
 For the full year 1992, Reliance reported a net loss of $35.7 million, or $.47 per share. This compares with a net loss of $145.6 million, or $1.97 per share, in 1991, which included a charge of $103.0 million, or $1.40 per share, to strengthen property and casualty insurance loss reserves. Revenues for 1992 were $2.76 billion, versus $2.55 billion in 1991.
 Reliance reported a loss from continuing operations of $24.7 million, or $.31 per share, for the fourth quarter of 1992, compared with a loss of $22.1 million, or $.30 per share, in the 1991 period. For the full year 1992, Reliance reported a loss from continuing operations of $43.2 million, or $.57 per share, versus a loss of $179.7 million, or $2.43 per share, in 1991.
 Reliance Group's chairman and chief executive officer, Saul P. Steinberg, said results from continuing operations were below expectations for 1992 because of the record level of catastrophe losses in the property and casualty business, as well as generally weak pricing in many of its standard commercial lines.
 "However, specialty commercial lines performed well, producing an underwriting profit for the year, and title insurance results were strong, despite a general lack of commercial real estate activity," he said.
 Commenting on the planned sale of UPL, Mr. Steinberg said: "We made the strategic decision to sell our life insurance business and redeploy the capital to our property and casualty and title insurance operations, where we see more lucrative opportunities and the potential for higher returns."
 Reliance Group Holdings, Inc., headquartered in New York, has major property and casualty and title insurance operations. Total revenues from continuing operations for 1992 were $2.76 billion.
 RELIANCE GROUP HOLDINGS, INC. AND SUBSIDIARIES
 Consolidated Statement of Operations
 (Unaudited; in thousands except per share amounts)
 Periods ended Quarter Year
 Dec. 31 1992 1991 1992 1991
 Revenues:
 Premiums earned $614,458 $607,219 $2,362,233 $2,224,742
 Net investment income 56,222 52,562 215,511 218,896
 Gain (loss) on sales
 of investments 16,231 26,089 53,347 (15,939)
 Gain on sale of
 subsidiary 8,999 -- 8,999 --
 Other 29,243 31,057 117,244 122,654
 Total 725,153 716,927 2,757,334 2,550,353
 Claims and expenses:
 Policy claims and
 settlement expenses 384,869 360,756 1,390,160 1,482,945
 Policy acquisition
 costs and other
 insurance expenses 311,945 297,595 1,169,465 1,068,947
 Interest 26,175 28,642 110,066 117,753
 Other operating expenses 42,933 41,297 164,809 155,404
 Total 765,922 728,290 2,834,500 2,825,049
 Loss from cont. opers.
 before income taxes,
 minority interests
 and equity in
 investee companies (40,769) (11,363) (77,166) (274,696)
 Income tax benefit 16,184 2,180 32,500 115,801
 Minority interests (930) (1,028) (3,760) (4,198)
 Equity in investee
 companies 830 (11,858) 5,206 (16,574)
 Loss from cont. opers. (24,685) (22,069) (43,220) (179,667)
 Discontinued operations:
 Income from life
 insurance operations 5,112 32,707 57,352 61,357
 Loss on disposal of
 life ins. opers. (100,000) -- (100,000) --
 Income (loss) from
 ins. brokerage opers. -- (20,818) 6,753 (29,913)
 Gain on disposal of
 insurance brokerage
 operations 40,000 -- 40,000 --
 Loss before
 extraordinary items (79,573) (10,180) (39,115) (148,223)
 Extraordinary item --
 early extinguishment
 of debt -- -- 3,460 1,715
 Extraordinary item
 of investee companies -- 224 -- 894
 Net loss $(79,573) $ (9,956) $ (35,655) $ (145,614)
 Per share information:
 Loss from cont. opers. $(.31) $(.30) $(.57) $(2.43)
 Income from discontinued
 operations .06 .16 .84 .43
 Loss on disposal of
 discontinued opers. (.75) -- (.79) --
 Loss before
 extraordinary items (1.00) (.14) (.52) (2.00)
 Extraordinary items -- -- .05 .03
 Net loss $(1.00) $(.14) $(.47) $(1.97)
 Average number of common
 shares outstanding 79,968 73,587 75,555 73,918
 -0- 4/5/93
 /CONTACT: Brian T. Martin, vice president - communications of Reliance, 212-909-1247/
 (REL)


CO: Reliance Group Holdings, Inc.; United Pacific Life Insurance
 Company; General Electric Capital Corporation ST: New York IN: INS SU: ERN


GK-LS -- NY009 -- 2901 04/05/93 09:20 EDT
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