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THE ST. PAUL COMPANIES REPORTS RECORD QUARTERLY OPERATING EARNINGS

 ST. PAUL, Minn., Oct. 21 /PRNewswire/ -- The St. Paul Companies (NYSE: SPC) reported record quarterly operating earnings of $135.0 million, or $2.99 per share, in the third quarter of 1993, compared with last year's third-quarter operating loss of $73.9 million, or $1.80 per share.
 "We continue to benefit from the corrective actions we are taking to improve results in our underwriting and insurance brokerage operations," said Douglas W. Leatherdale, chairman and chief executive officer. "In addition, catastrophe losses were not a significant factor in third-quarter results. Last year at this time, we were reeling from the effects of Hurricane Andrew.
 "Our reinsurance operation made significant improvements in the third quarter, the result of corrective actions, as well as the decline in catastrophic storms. Reinsurance produced an underwriting profit of $5 million in the third quarter of 1993, compared with a third-quarter 1992 underwriting loss of $163 million.
 "Also noteworthy for the third quarter was the completion of our purchase of Economy Fire & Casualty Company from Kemper Corporation," Leatherdale added. Economy, which had 1992 premuims of $401 million, is a Freeport, Ill.-based personal insurance company with 1,200 employees.
 Net income for third-quarter 1993 was $141.4 million, or $3.14 per share, compared with a net loss of $63.9 million, or $1.56 per share, for the third quarter of 1992. Third-quarter 1993 net income included after-tax realized investment gains of $6.4 million, or $0.15 per share, compared with gains of $10.0 million, or $0.24 cents per share, in the same period of 1992.
 Nine-months results
 For the first nine months of 1993, operating earnings were $306.8 million, or $6.79 per share, compared with $92.5 million, or $1.98 per share, for the first nine months of 1992.
 Net income for the first nine months of 1993 was $337.9 million, or $7.49 per share, compared with $261.5 million, or $5.75 per share, for the first nine months of 1992. Net income for the first nine months of 1993 included after-tax realized investment gains of $31.1 million, or $0.70 per share. Net income for the first nine months of 1992 included the cumulative effects of two accounting changes adopted in first- quarter 1992, which added $76.5 million, or $1.71 per share, to net income, as well as after-tax realized investment gains of $92.6 million, or $2.06 per share, which included a $65 million gain from the sale of a minority interest in The John Nuveen Company.
 Underwriting Operations
 THE ST. PAUL COMPANIES
 THIRD-QUARTER UNDERWRITING OPERATIONS
 HIGHLIGHTS
 Three months ended Sept. 30,
 1993 1992
 Written premiums $814,805,000 $840,020,000
 Underwriting loss ($15,006,000) ($255,260,000)
 Net investment income $164,574,000 $160,276,000
 Pretax operating earnings
 (loss) (a) $138,861,000 ($102,928,000)
 Statutory combined ratio 101.2 130.9
 (a) excluding realized investment gains
 THE ST. PAUL COMPANIES
 NINE-MONTHS UNDERWRITING OPERATIONS
 HIGHLIGHTS
 Nine months ended Sept. 30,
 1993 1992
 Written premiums $2,335,554,000 $2,362,383,000
 Underwriting loss ($116,858,000) ($354,255,000)
 Net investment income $489,878,000 $479,952,000
 Pretax operating earnings (a) $359,330,000 $108,510,000
 Statutory combined ratio 104.6 114.6
 (a) excluding realized investment gains
 Insurance Brokerage Operations
 For the third quarter of 1993, The Minet Group, The St. Paul's London-based insurance brokerage operation had pretax income of $4.1 million, compared with a pretax loss of $32.1 million, which included significant reorganization charges, for the third quarter of 1992.
 For the first nine months of 1993, Minet had a pretax loss of $13.0 million, compared with a pretax loss of $51.7 million for the first nine months of 1992.
 The John Nuveen Company
 The St. Paul's portion of The John Nuveen Company's third-quarter 1993 pretax operating earnings totaled $20.9 million, compared with pretax operating earnings of $20.4 million for the same period in 1992.
 For nine-months 1993, The St. Paul's portion of Nuveen's pretax operating earnings was $62.0 million, compared with $63.9 million for the first nine months of 1992.
 The St. Paul's portion of Nuveen's earnings was less in the first nine months of 1993 than the same period in 1992 due to the sale of a minority interest in May 1992. The St. Paul now owns 74 percent of Nuveen. Nuveen's total net income for the first nine months of 1993 was actually up 20 percent over the same 1992 period.
 The market value of The St. Paul's investment in Nuveen at the end of the third quarter was $1.01 billion.
 At the end of the third quarter, Nuveen had $32.6 billion in assets under management, compared with $25.7 billion one year ago.
 Consolidated Financial Position
 Consolidated assets of The St. Paul Companies as of Sept. 30, 1993, were $16.07 billion, compared with $15.39 billion as of Dec. 31, 1992.
 Common shareholders' equity was $2.4 billion at the end of the third quarter, compared with $2.2 billion on Dec. 31, 1992. Book value per common share as of Sept. 30, 1993, was $57.84, compared with $52.37 on Dec. 31, 1992.
 NINE-MONTHS RESULTS
 1993 1992
 Revenues $3,288,341,000 $3,397,280,000
 Operating Earnings $306,812,000 $92,472,000
 Per Common Share
 (Fully Diluted) $6.79 $1.98
 Realized Investment Gains,
 Net of Taxes Investments $31,104,000 $27,718,000
 Gain on Sale of Nuveen Shares $0 $64,834,000
 Total $31,104,000 $92,552,000
 Per Common Share
 (Fully Diluted) $0.70 $2.06
 Cumulative Effects of
 Accounting Changes $0 $76,483,000
 Per Common Share (Fully Diluted) $0 $1.71
 Net Income (a) $337,916,000 $261,507,000
 Per Common Share (Fully Diluted) $7.49 $5.75
 THIRD-QUARTER RESULTS
 1993 1992
 Revenues $1,104,975,000 $1,125,114,000
 Operating Earnings (Loss) $134,973,000 ($73,927,000)
 Per Common Share (Fully Diluted) $2.99 ($1.80)
 Realized Investment
 Gains, Net of Taxes $6,415,000 $10,041,000
 Per Common Share (Fully Diluted) $0.15 $0.24
 Net Income (Loss) $141,388,000 ($63,886,000)
 Per Common Share (Fully Diluted) $3.14 ($1.56)
 (a) Primary earnings per common share are:
 Third Quarter Nine Months
 1993 1992 1993 1992
 Income (loss) before
 cumulative effects of
 accounting changes $3.27 ($1.56) $7.80 $4.18
 Cumulative effects of
 accounting changes $0 $0 $0 $1.79
 Net income (loss) $3.27 ($1.56) $7.80 $5.97
 -0- 10/21/93
 /CONTACT: Barbara Reynolds of The St. Paul Companies, 612-221-7399/
 (SPC)


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

DS-AL -- MN004 -- 4978 10/21/93 08:43 EDT
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Date:Oct 21, 1993
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