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SUNAMERICA REPORTS 65 PERCENT INCREASE IN SECOND QUARTER NET INCOME PER SHARE

 LOS ANGELES, CALIFORNIA, April 30, 1993 /PRNewswire/ -- SunAmerica Inc. (NYSE: SAI) today reported net income for its second quarter ended March 31, 1993, of $28.7 million, or $.66 per share, up 65 percent on a per share basis from the $15.6 million, or $.40 per share, reported for the quarter a year ago.
 "After-tax return on average equity for the quarter was 16 percent, compared to 12 percent for last year's second quarter," said Eli Broad, chairman and chief executive officer. "This year's second quarter was the third consecutive period in which our return on equity exceeded our minimum target of 15 percent."
 For the six months ended March 31, the company earned net income of $55.8 million or $1.29 per share, up 63 percent on a per share basis from the $30.1 million or $.79 per share reported for the like period last year.
 "SunAmerica's improved performance in the second quarter and first half of 1993 reflects significant increases in both net investment income and fee income, coinciding with a sharp drop in net realized investment losses from year-ago levels," said Broad.
 Reflecting an increase in total invested assets and continued pricing discipline to reduce the company's cost of funds, net investment income for 1993's second quarter totaled $58.7 million, a gain of $13.2 million (or 29 percent) over 1992's second quarter. Net investment income for the first half of 1993 totaled $107.9 million, up $15.6 million (17 percent) from the same period last year.
 Fee income in 1993's second period totaled $32.5 million, a gain of $4.7 million (17 percent) over 1992's second period. Fee income for the first six months of 1993 totaled $63.8 million, an increase of $9.2 million (17 percent) over the first six months of 1992.
 "Fee-based businesses -- variable annuities and mutual funds -- are the fastest growing segment of our business," said Broad. "They accounted for 64 percent of the second quarter's $517 million in sales."
 Net realized investment losses for the three months ended March 31, 1993 totaled $5.3 million, down from $17.4 million in 1992. For the first half of 1993, net realized investment losses totaled $9.1 million, down from $32.1 million in 1992.
 Second quarter after-tax earnings before net realized investment losses ("operating net income") rose to $32.2 million, or $.75 per share in the second quarter of 1993, compared with $27.1 million or $.70 per share in the like period of 1992. First half operating net income in 1993 totaled $61.8 million or $1.45 per share, compared with $51.3 million or $1.35 per share in 1992. Operating net income is commonly used by investment analysts to describe performance in the financial services industry.
 At quarter-end, the net carrying value of defaulted investments (including bonds, senior secured loans and mortgages) was $102 million, or 1 percent of total invested assets, well below the level of a year earlier.
 During the March quarter, the company issued $185 million of new mandatory conversion preferred stock. In addition, in April the company issued $100 million of 30-year debentures. At quarter-end, total equity capital was $977 million.
 "Our task over the next year to 18 months is to continue to meet or exceed analyst earnings estimates, and enhance value by redeploying the significant amount of capital we've raised during fiscal 1992 and 1993 at returns commensurate with our 15 percent target return on equity," Broad said.
 The company's total assets owned or under management at March 31, 1993 were $16.7 billion, with an additional $4.7 billion of assets under custody at its trust company subsidiary.
 SunAmerica is a financial services company which specializes in selling tax-deferred long-term savings products and investments to the expanding preretirement savings market.
 SUNAMERICA INC.
 Condensed Consolidated Income Statement
 (In thousands, except per common share amounts)
 (Unaudited)
 Three Months Ended March 31,
 1993 1992
 Investment income $179,374 $183,853
 Interest expense (119,739) (137,025)
 Dividends paid on preferred
 stock of a subsidiary
 corporation (889) (1,254)
 Net investment income 58,746 45,574
 Net realized investment
 losses (5,325) (17,406)
 Fee income:
 Variable annuity fees 15,831 14,016
 Asset management fees 8,000 6,301
 Net retained commissions 5,966 4,819
 Trust fees 2,741 2,701
 Total fee income 32,538 27,837
 Other income and expenses:
 Surrender charges 2,359 3,878
 General and administrative
 expenses (34,690) (30,800)
 Amortization of deferred
 acquisition costs (12,861) (12,014)
 Gain on redemption of
 senior subordinated
 fixed rate notes --- 3,880
 Other, net 53 894
 Total other income and
 expenses (45,139) (34,162)
 Pretax income 40,820 21,843
 Income tax expense (12,100) (6,200)
 Net income $28,720 $15,643
 Per common share $0.66 $0.40
 Average common shares
 outstanding 38,542 38,860
 Six Months Ended March 31,
 1993 1992
 Investment income $358,815 $370,081
 Interest expense (249,123) (275,189)
 Dividends paid on preferred
 stock of a subsidiary
 corporation (1,775) (2,555)
 Net investment income 107,917 92,337
 Net realized investment
 losses (9,073) (32,132)
 Fee income:
 Variable annuity fees 31,965 28,058
 Asset management fees 15,843 11,658
 Net retained commissions 10,503 9,429
 Trust fees 5,532 5,460
 Total fee income 63,843 54,605
 Other income and expenses:
 Surrender charges 4,967 8,742
 General and administrative
 expenses (64,444) (60,272)
 Amortization of deferred
 acquisition costs (25,535) (23,985)
 Gain on redemption of
 senior subordinated
 fixed rate notes --- 3,880
 Other, net 1,664 1,498
 Total other income and
 expenses (83,348) (70,137)
 Pretax income 79,339 44,673
 Income tax expense (23,500) (14,600)
 Net income $55,839 $30,073
 Per common share $1.29 $0.79
 Average common shares
 outstanding 38,207 37,979
 -0- 4/30/93
 /CONTACT: Jana Waring Greer, senior VP of SunAmerica, 310-445-6532/
 (SAI)


CO: SunAmerica Inc. ST: California IN: FIN SU: ERN

EH-JB -- LA010 -- 3193 04/30/93 12:17 EDT
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