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THE ST. PAUL COMPANIES REPORTS THIRD QUARTER LOSS

 THE ST. PAUL COMPANIES REPORTS THIRD QUARTER LOSS
 ST. PAUL, Minn., Oct. 26 /PRNewswire/ -- The St. Paul Companies


(NYSE: SPC) reported a third-quarter 1992 operating loss of $1.68 per share, compared with last year's third-quarter per share operating earnings of $2.19. The operating loss, which excludes realized investment gains, was $73.9 million, compared with operating earnings of $98.1 million in the third quarter of 1991.
 The company reported a third-quarter net loss of $1.46 per share in 1992, compared with net income of $2.40 per share for the same period of 1991. The third quarter net loss was $63.9 million, compared with net income of $107.7 million for the same period of 1991. The net loss for the 1992 third quarter included $10.0 million of after-tax realized investment gains, compared with gains of $9.6 million for the same period of 1991.
 "Hurricane Andrew, the costliest natural catastrophe in U.S. history, took its toll on our insurance and reinsurance underwriting operations in the third quarter," said Douglas W. Leatherdale, chairman and chief executive officer of The St. Paul Companies. "Andrew, along with Hurricane Iniki, Typhoon Omar and other third-quarter catastrophes, reduced after-tax earnings by $2.98 per share. That compares to catastrophe losses of 54 cents per share in the third quarter of 1991.
 "Needless to say, we don't like to see underwriting losses of this magnitude. But that's why we're in business to pay our customers' claims when disaster strikes. It's something an insurance company has to be prepared for. And we are. We've been able to pay claims resulting from these storms without compromising The St. Paul's overall financial strength," Leatherdale said.
 "At the end of the third quarter, our shareholders' equity stood at $2.7 billion, up from $2.5 billion at year-end 1991."
 Leatherdale said the Minet Group, The St. Paul's international insurance brokerage operation, "was a major disappointment in the quarter."
 "Insurance brokerage has generated substantial losses for us this year. We are reorganizing Minet, which resulted in significant charges in the third quarter. This reorganization should serve us well in the long term. In the meantime, we are pursuing all possible alternatives to restore Minet to profitability.
 "On a brighter note, our share of The John Nuveen Company continues to produce strong profits. Nuveen contributed over $20 million to our pretax results in the third quarter," Leatherdale said.
 The St. Paul Companies' revenues in the third quarter of 1992 were $1.1 billion, slightly under third-quarter 1991 revenues. Nine-Months Results
 For the first nine months of 1992, operating earnings per share were $1.98, compared with $6.35 for the same period of 1991. Nine-months operating earnings were $92.5 million, compared with $284.2 million for the first nine months of 1991.
 Net income per share for the first nine months of 1992 was $5.75, compared with $6.60 for the first nine months of 1991. Nine-months net income was $261.5 million, compared with $295.6 million for the same period of 1991.
 The adoption of two Financial Accounting Standards Board statements during first-quarter 1992 increased net income for the first nine months of 1992 by $1.71 per share, or $76.5 million.
 Net income for the first nine months of 1992 included after-tax realized investment gains of $92.6 million (including the gain on the sale of a minority interest in The John Nuveen Company), compared with gains of $11.4 million in the same period of 1991.
 Nine-months revenues for 1992 were $3.4 billion, compared with $3.2 billion for the same period in 1991. Underwriting Operations
 "Our efforts to convert some of our commercial insurance business - primarily workers' compensation - to deductible plans reduced our premium volume for the quarter and the year," Leatherdale said.
 THE ST. PAUL COMPANIES
 THIRD-QUARTER UNDERWRITING OPERATIONS HIGHLIGHTS
 Three months ended September 30
 1992 1991
 Written premiums $840,020,000 $870,401,000
 Underwriting loss ($255,260,000) ($56,399,000)
 Net investment income $160,276,000 $159,875,000
 Pretax operating earnings
 (loss)(a) ($102,928,000) $98,638,000
 Statutory combined ratio 130.9 105.9
 (a) Excluding realized investment gains
 THE ST. PAUL COMPANIES
 NINE-MONTHS UNDERWRITING OPERATIONS HIGHLIGHTS
 Nine months ended September 30
 1992 1991
 Written premiums $2,362,383,000 $2,417,070,000
 Underwriting loss ($354,255,000) ($135,670,000)
 Net investment income $479,952,000 $478,037,000
 Pretax operating earnings(a) $108,510,000 $326,769,000
 Statutory combined ratio 114.6 104.8
 (a) Excluding realized investment gains Insurance Brokerage Operations
 For the third quarter of 1992, insurance brokerage operations had a pretax loss of $32.1 million, compared with pretax earnings of $12.6 million for the same 1991 period.
 For the first nine months of 1992, brokerage had a pretax loss of $51.7 million, compared with pretax earnings of $10.3 million for nine- months 1991. The John Nuveen Company
 The St. Paul's portion of The John Nuveen Company's third-quarter 1992 pretax operating earnings totaled $20.4 million, compared with pretax operating earnings of $22.3 million for the same period in 1991. The St. Paul now owns 74 percent of Nuveen stock after selling a minority interest in Nuveen during the second quarter of 1992.
 For nine-months 1992, The St. Paul's portion of Nuveen's pretax operating earnings was $63.9 million, up from $54.7 million for nine- months 1991.
 At the end of the third quarter, Nuveen had $25.7 billion in assets under management, compared with $19.0 billion one year ago. Consolidated Financial Position
 Consolidated assets of The St. Paul Companies as of Sept. 30, 1992, were $13.9 billion, compared with $12.7 billion as of Sept. 30, 1991.
 Common shareholders' equity was $2.7 billion on Sept. 30, 1992, compared with $2.4 billion on Sept. 30, 1991.
 Book value per common share was $63.63 compared with $56.51 on Sept. 30, 1991.
 THE ST. PAUL COMPANIES
 CONSOLIDATED THIRD-QUARTER RESULTS
 1992 1991
 Revenues $1,125,114,000 $1,125,780,000
 Operating Earnings (loss) ($73,927,000) $98,137,000
 Per Common Share (Fully Diluted) ($1.68) $2.19
 Realized Investment Gains,
 Net of Taxes $10,041,000 $9,610,000
 Per Common Share (Fully Diluted) $0.22 $0.21
 Net Income (Loss) ($63,886,000) $107,747,000
 Per Common Share (Fully Diluted) ($1.46) $2.40
 THE ST. PAUL COMPANIES
 CONSOLIDATED NINE-MONTHS RESULTS
 1992 1991
 Revenues $3,397,280,000 $3,210,459,000
 Operating Earnings $92,472,000 $284,231,000
 Per Common Share (Fully Diluted) $1.98 $6.35
 Realized Investment Gains,
 Net of Taxes $92,552,000 $11,399,000
 Per Common Share (Fully Diluted) $2.06 $0.25
 Cumulative Effects of Accounting
 Changes $76,483,000 $0
 Per Common Share (Fully Diluted) $1.71 $0
 Net Income $261,507,000 $295,630,000
 Per Common Share (Fully Diluted) $5.75 $6.60
 -0- 10/26/92
 /CONTACT: Barbara Reynolds of The St. Paul Companies, 612-221-7399/
 (SPC) CO: The St. Paul Companies, Inc. ST: Minnesota IN: INS SU: ERN


KH -- MN003 -- 4599 10/26/92 09:30 EST
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Date:Oct 26, 1992
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