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THE ST. PAUL COMPANIES REPORTS 1992 YEAR-END RESULTS

 ST. PAUL, Minn., Jan. 28 /PRNewswire/ -- The St. Paul Companies (NYSE: SPC) reported a 1992 operating loss of $8.08 per share, compared with last year's operating earnings of $8.47 per share. The operating loss, which excludes realized investment gains, was $333.8 million, compared with operating earnings of $380.8 million in 1991.
 After-tax realized investment gains totaled $101.3 million (including the gain on the sale of a minority interest in The John Nuveen Company), compared with gains of $24.3 million for 1991.
 The company reported a net loss of $3.88 per share for 1992, compared with net income of $9.01 per share for 1991. The 1992 net loss was $156.0 million, compared with net income of $405.1 million for 1991.
 "It was a disappointing year," said Douglas W. Leatherdale, chairman and chief executive officer of The St. Paul Companies. "However, while our loss was substantial, we remain very strong financially. For example, our ratio of total debt to total capitalization at year-end was 20 percent, and our underwriting operations' premiums-to-surplus ratio was 1.9:1, both very conservative ratios.
 "It was also a unique year. A number of unusual events make it difficult to compare 1992 with other years. Hurricane Andrew cost us over $200 million; we wrote off $365 million of goodwill in our insurance brokerage operation; we offered an early retirement program, which resulted in a $31 million pretax charge; we adopted two new accounting standards, which added $76 million to net income; and we sold a minority interest in Nuveen, which provided $65 million in after-tax capital gains.
 "Barring another year of large losses from catastrophic storms, we look forward to a return to more normal levels of profitability in 1993," Leatherdale said.
 Leatherdale said the Minet Group, The St. Paul's insurance brokerage operation, had a difficult year but, following restructuring, is beginning its recovery.
 "Minet has a new CEO, a new organization and a focused strategy. I look forward to an improvement in its results in 1993," he said.
 "The John Nuveen Company had another outstanding quarter and year,"
Leatherdale said. "Despite the impact of our initial public offering, which reduced the portion of Nuveen's earnings that we record, Nuveen produced record earnings for us."
 The St. Paul Companies' revenues in 1992 were $4.5 billion, compared with 1991 revenues of $4.4 billion.
 Fourth-quarter Results
 For the fourth quarter of 1992, the operating loss per share was $10.20, compared with operating earnings per share of $2.14 for the same period of 1991. The fourth-quarter operating loss was $426.3 million, compared with operating earnings of $96.6 million for the fourth quarter of 1991.
 The fourth-quarter operating loss included the $365 million write- down of Minet goodwill, pretax catastrophe losses of $71 million and a pretax charge of $31 million associated with the early retirement program. (The corresponding after-tax per-share amounts were $8.69, $1.13 and $0.49, respectively.)
 Fourth-quarter 1992 after-tax realized investment gains totaled $8.8 million, compared with gains of $12.8 million in the same period of 1991.
 The net loss per share for the fourth quarter of 1992 was $9.99, compared with net income per share of $2.43 for the fourth quarter of 1991. The fourth-quarter net loss was $417.5 million, compared with net income of $109.4 million for the same period of 1991.
 Fourth-quarter revenues were $1.1 billion in both 1991 and 1992.
 Underwriting Operations
 "While catastrophe losses hit almost all our underwriting operations hard, we also had significant losses in our workers' compensation business. We have been implementing measures to improve those results," Leatherdale said.
 THE ST. PAUL COMPANIES
 TWELVE-MONTHS UNDERWRITING
 OPERATIONS HIGHLIGHTS
 Twelve months ended December 31,
 1992 1991
 Written premiums $3,142,419,000 $3,233,729,000
 Underwriting loss ($566,886,000) ($163,782,000)
 Net investment income $642,301,000
 $640,856,000
 Pretax operating earnings(a) $20,781,000 $451,184,000
 Statutory combined ratio 117.8 104.6
 (a) excluding realized investment gains
 THE ST. PAUL COMPANIES
 FOURTH-QUARTER UNDERWRITING
 OPERATIONS HIGHLIGHTS
 Three months ended December 31
 1992 1991
 Written premiums $780,036,000 $816,659,000
 Underwriting loss ($212,631,000) ($28,112,000)
 Net investment income $162,349,000 $162,819,000
 Pretax operating
 earnings (loss) (a) ($87,729,000) $124,415,000
 Statutory combined ratio 127.4 103.8
 (a) excluding realized investment gains
 Insurance Brokerage Operations
 Insurance brokerage operations had a pretax loss of $432.5 million in 1992, compared with pretax earnings of $9.4 million in 1991. The 1992 loss included the $365 million fourth-quarter write-down of Minet goodwill and one-time reorganization charges of $33 million in the third quarter.
 For the fourth quarter of 1992, insurance brokerage had a pretax loss of $380.9 million, compared with a pretax loss of $891,000 for the same period of 1991.
 The John Nuveen Company
 The St. Paul's portion of The John Nuveen Company's 1992 pretax operating earnings totaled $82.5 million, up from $77.5 million in 1991. The St. Paul owns 74 percent of Nuveen stock after selling a minority interest during the second quarter of 1992.
 For fourth-quarter 1992, The St. Paul's portion of Nuveen's pretax operating earnings was $18.6 million, compared with $22.8 million for the fourth quarter of 1991, when The St. Paul owned 100 percent of Nuveen.
 At the end of the year, Nuveen had $27 billion in assets under management, compared with $22 billion one year ago.
 Consolidated Financial Position
 Consolidated assets of The St. Paul Companies as of Dec. 31, 1992, were $13.6 billion, compared with $13.0 billion as of Dec. 31, 1991.
 Common shareholders' equity was $2.2 billion on Dec. 31, 1992, compared with $2.5 billion on Dec. 31, 1991.
 Book value per common share was $52.37 on Dec. 31, 1992, compared with $59.57 on Dec. 31, 1991.
 THE ST. PAUL COMPANIES
 CONSOLIDATED TWELVE-MONTHS RESULTS
 1992 1991
 Revenues $4,498,692,000 $4,351,700,000
 Operating Earnings (Loss) ($333,791,000) $380,804,000
 Per Common Share (Fully Diluted) ($8.08) $8.47
 Realized Investment Gains,
 Net of Taxes $101,270,000 $24,258,000
 Per Common Share (Fully Diluted) $2.39 $0.54
 Cumulative Effects of
 Accounting Changes $76,483,000 $0
 Per Common Share (Fully Diluted) $1.81 $0
 Net Income (Loss) ($156,038,000) $405,062,000
 Per Common Share
 (Fully Diluted) (a) ($3.88) $9.01
 THE ST. PAUL COMPANIES
 CONSOLIDATED FOURTH-QUARTER RESULTS
 1992 1991
 Revenues $1,101,412,000 $1,141,241,000
 Operating Earnings (Loss) ($426,263,000) $96,573,000
 Per Common Share (Fully Diluted) ($10.20) $2.14
 Realized Investment Gains,
 Net of Taxes $8,718,000 $12,859,000
 Per Common Share (Fully Diluted) $0.21 $0.29
 Net Income (Loss) ($417,545,000) $109,432,000
 Per Common Share
 (Fully Diluted) (a) ($9.99) $2.43
 (a) The per-share figures above are fully diluted. The primary net loss per share for the year ended Dec. 31, 1992, was $3.88, compared with net income of $9.35 for 1991. The 1992 fourth-quarter primary net loss per share was $9.99, compared with net income of $2.52 for the fourth quarter of 1991.
 -0- 1/28/93
 /CONTACT: Barbara Reynolds of The St. Paul Companies, 612-221-7399/
 (SPC)


CO: The St. Paul Companies ST: Minnesota IN: INS SU: ERN

DS -- MN002 -- 0105 01/28/93 09:37 EST
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