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TIG HOLDINGS REPORTS THIRD QUARTER RESULTS; TRANSAMERICA TO SELL ITS REMAINING 27 PERCENT INTEREST IN TIG

 NEW YORK, Nov. 1 /PRNewswire/ -- TIG Holdings, Inc. (NYSE: TIG) today reported net income from continuing operations excluding investment gains for the third quarter of 1993 of $17.1 million or $0.29 per share, compared with a net loss from continuing operations excluding investment gains of $34.5 million or $0.56 per share in the third quarter of 1992. Net income for the third quarter of 1993 was $29.5 million or $0.48 per share compared with net income of $27.7 million or $0.43 per share during the same period in 1992. TIG realized after-tax net investment gains of $12.4 million in the third quarter of 1993 as compared to $64.0 million in the third quarter of 1992.
 Jon Rotenstreich, Chairman and Chief Executive Officer, said, "We are pleased with the earnings of our first full quarter since the Company's initial public offering. The benefits of our staff reduction and elimination of unprofitable business have started to contribute to earnings. We expect the relocation of our national support center to Dallas-Fort Worth in the spring of 1994 to generate future additional cost savings. However, there is a lot more to do in revamping our business processes to achieve acceptable levels of underwriting and service efficiencies." Don Hutson, President and Chief Operating Officer, said, "It is through the hard work of all of our employees that we have been able to implement the first phase of our restructuring plan. Our agents and customers have responded very favorably to TIG's enhanced financial strength and recent organizational changes."
 Net losses for the first nine months of 1993 and 1992 were $150.8 million or $2.40 per share and $6.4 million or $0.12 per share, respectively. Net loss for the first nine months of 1992 included a charge of $15.1 million or $0.24 per share for a change in accounting for post employment benefits, and a net loss from discontinued operations of $14.8 million or $0.23 per share. TIG realized net investment gains of $60.9 million for the nine months ended September 30, 1993 compared to $73.2 million for the nine months ended September 30, 1992.
 The nine months 1993 results include a restructuring charge of $73.0 million for expenses related to previously announced staff reductions, the relocation of the Company's national support center and lease termination expense resulting from the restructuring of field operations. In addition to the restructuring charge of $73.0 million in the second quarter of 1993, employee separation and other costs related to TIG's initial public offering of $6.9 million were incurred in the first quarter of 1993. In the nine months ended September 30, 1993, $10.5 million in pre-tax compensation expense was incurred related to the Company's grant through its ESOP of 100 shares of common stock to each employee at the time of the initial public offering.
 Nine months 1993 results also include a provision totaling $65.6 million relating to the decision to exit over $200 million in gross annualized premiums of unprofitable commercial business of which $38.0 million was for future losses and $27.6 million was for the write- off of intangibles. During the first nine months of 1993, loss reserves were strengthened by $144.5 million as compared to $152.6 million during the corresponding period in 1992. The increase in loss reserves in 1993 was principally due to the adoption by new management of a more conservative approach to establishing loss reserves.
 In the first nine months of 1993, TIG entered into a Proposition 103 settlement with the California Department of Insurance. As a result, TIG paid during the nine month period refunds to policyholders of $17.0 million which are comprised of $12.1 million in premium refunds and $4.9 million in interest expense.
 Net catastrophe costs were $1.6 million in the three months ended September 30, 1993 as compared with $30.8 million in the 1992 period. Net catastrophe costs were $19.2 million in the first nine months of 1993 as compared with $42.1 million in the first nine months of 1992.
 Total assets as of September 30, 1993 were $6.2 billion including investment assets of $4.2 billion, compared with total assets of $5.7 billion including investment assets of $3.4 billion as of December 31, 1992. Common shareholders equity was $1.2 billion at September 30, 1993 or $18.58 per share.
 Transamerica Corporation has exercised its option under agreements with TIG entered into in connection with TIG's initial public offering to sell its remaining interest in TIG in a public offering of 17.3 million common shares. Transamerica's ownership represents 27 percent of the outstanding common stock of TIG. A registration statement is expected to be filed with the Securities and Exchange Commission promptly.
 Headquartered in New York, New York, TIG Holdings, Inc. is the holding company for a property casualty insurance group that offers reinsurance and primary commercial and personal insurance throughout the United States. It is the 27th largest property and casualty insurer and the 10th largest property and casualty reinsurer in the United States, based on 1992 net written premiums.
 TIG HOLDINGS, INC.
 SUMMARY OF CONSOLIDATED FINANCIAL DATA
 (Dollars in millions, except per share amounts)
 (unaudited)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Income Statement Data:
 Gross premiums written $541 $537 $1,571 $1,575
 Net premiums written 418 396 1,181 1,192
 Net premiums earned 393 401 1,168 1,230
 Losses and LAE incurred 305 377 1,120 1,102
 Policy acquisition & other
 underwriting expenses 138 135 413 398
 Underwriting loss (55) (118) (383) (287)
 Net investment income 65 56 180 178
 Restructuring charge 0 0 73 0
 Provision for losses related
 to certain commercial
 businesses 0 0 66 0
 Net inc. (loss) from
 continuing operations
 excluding investment
 gains 17 (34) (212) (49)
 Investment gains,
 net of tax 12 64 61 73
 Discontinued Operations,
 net of tax 0 (2) 0 (15)
 Accounting change,
 net of tax 0 0 0 (15)
 Net income (loss) 29 28 (151) (6)
 Wtd. avg. shares
 outstanding 63,532,098 62,938,518 63,532,098 62,938,518
 Earnings per common share 0.48 0.43 (2.40) (0.12)
 Operating Ratios (in percents):
 Losses and LAE 77.4 93.9 95.8 89.6
 Underwriting expense 35.2 33.8 35.4 32.4
 Policyholder dividends 1.4 1.7 1.6 1.4
 Combined ratio 114.0 129.4 132.8 123.4
 TIG HOLDINGS, INC.
 SUMMARY OF CONSOLIDATED FINANCIAL DATA
 (continued)
 (Dollars in millions, except per share amounts)
 (unaudited)
 Balance Sheet Data:
 September 30, 1993 December 31, 1992
 Investment Assets $4,238 $3,449
 Total Assets 6,232 5,661
 Total Reserves 3,790 3,404
 Common Equity 1,180 1,087
 Book Value per Share $18.58 $17.27
 -0- 11/1/93
 /CONTACT: Louis Paglia of TIG Holdings, Inc., 212-446-2708; Andrew Baer or Tracey Stearns of Kekst and Company, 212-593-2655/
 (TIG)


CO: TIG Holdings, Inc. ST: New York IN: INS SU: ERN

SH -- NY014 -- 8969 11/01/93 08:44 EST
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Date:Nov 1, 1993
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