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TRANSATLANTIC HOLDINGS, INC. ANNOUNCES SECOND QUARTER EARNINGS INCREASE

 NEW YORK, July 29 /PRNewswire/ -- Transatlantic Holdings, Inc. (NYSE: TRH) today reported that its net income in the second quarter of 1993 increased 18.2 percent to $21.7 million, or $0.94 per common share, compared with $18.3 million, or $0.80 per common share, in the same period of 1992. For the first six months of 1993, net income increased to $87.3 million, or $3.81 per common share, versus $40.3 million, or $1.76 per common share.
 Net income for the first six months of 1993 includes a net benefit of $46.3 million, or $2.02 per common share, for the cumulative catch-up effect of accounting changes related to the adoption, in the first quarter, of accounting pronouncements for income taxes (SFAS No. 109) and postretirement benefits (SFAS No. 106).
 Following is a comparative table of second quarter and six months information in millions, except per common share results:
 Second Quarter Six Months
 1993 1992 1993 1992
 Net income, as reported $21.7 $18.3 $87.3 $40.3
 Income, as adjusted (A) $20.6 $17.7 $40.5 $35.7
 PER COMMON SHARE RESULTS:
 Net income, as reported $0.94 $0.80 $3.81 $1.76
 Income, as adjusted (A) $0.90 $0.77 $1.77 $1.56
 Weighted average common
 shares outstanding 22.9 22.9 22.9 22.9
 (A) Adjusted to exclude cumulative effect of accounting changes, realized capital gains, net of income taxes, and in 1992, the "fresh start" tax benefit.
 Income before income taxes and the cumulative effect of accounting changes increased 9.8 percent to $23.8 million, in the second quarter of 1993, from $21.7 million recorded in the same period of 1992. Included in these results are pre-tax realized capital gains of $1.6 million and $486,000 in 1993 and 1992, respectively. For the first six months of 1993, income before income taxes and the cumulative effect of accounting changes totalled $45.1 million versus $47.7 million for the comparable prior year period, a decrease of 5.6 percent. Included in these results are pre-tax realized capital gains of $762,000 and $4.9 million in 1993 and 1992, respectively.
 The remaining "fresh start" tax benefit at December 31, 1992 of approximately $5.9 million has been recognized as part of the cumulative effect of accounting changes upon implementation of SFAS No. 109 in the first quarter. Accordingly, no "fresh start" benefit is reflected in the 1993 tax provisions. In the second quarter and first six months of 1992, the "fresh start" tax benefit reduced the provision for income taxes by $239,000 and $714,000, respectively.
 At June 30, 1993, TRH's consolidated assets and stockholders' equity were approximately $2.9 billion and $654.2 million, respectively, each representing an increase of $21.9 million over their respective March 31, 1993 amounts.
 The Company's conservative fixed maturity investment portfolio consists primarily of diversified and liquid taxable bonds and tax- exempt municipal bonds and our equity portfolio emphasizes quality growth companies. At June 30, 1993, the market value of bonds exceeded the carrying value of $1.9 billion by $177.7 million. Our balance sheet contains no junk bonds, real estate or long-term debt.
 Net loss and loss adjustment expense reserves of $1.4 billion increased $18.0 million in the second quarter of 1993, bringing the increase in net loss and loss adjustment expense reserves for the first six months of 1993 to $39.6 million.
 Net premiums written in the second quarter increased 27.5 percent to $153.6 million from $120.5 million in last year's second quarter. For the first six months of 1993, net premiums written increased 18.7 percent to $282.6 million from $238.0 million.
 The combined ratio was 107.6 for the second quarter of 1993 versus 108.7 for the comparable 1992 quarter. The second quarter loss ratios for 1993 and 1992 were 79.2 and 80.7, respectively. The underwriting expense ratios for the second quarters of 1993 and 1992 were 28.4 and 28.0, respectively. For the first six months of 1993, the combined ratio was 108.2 versus 108.3 for the same prior year period. The loss ratios were 80.9 and 81.3, respectively. The first six months underwriting expense ratio was 27.3 versus 27.0 for the comparable prior year period. The combined and loss ratios in 1993 include the impact of $4 million of losses related to the March blizzard and World Trade Center bombing recorded in the first quarter and $4.5 million of losses related to the London Bishopsgate bombing recorded in the second quarter. The second quarter and six months 1992 results include the impact of losses arising from the civil unrest in Los Angeles, the London St. Mary's Axe bombing and the Chicago flood totalling $5 million.
 Net investment income rose 6.2 percent to $34.4 million in the second quarter of 1993 from $32.4 million in last year's second quarter. For the first six months of 1993, net investment income rose 6.7 percent to $68.1 million from $63.9 million in the comparable prior year period.
 In the second quarter of 1993, realized capital gains, net of income taxes, totalled $1.1 million versus $389,000 in the same 1992 quarter. For the first six months of 1993 and 1992, realized capital gains, net of income taxes, were $503,000 and $3.9 million, respectively.
 In the second quarter of 1993, a dividend of $0.07 per common share was declared by the Board of Directors to stockholders of record as of September 7, 1993, payable on September 21, 1993.
 Commenting on these results, Joseph V. Taranto, President, said, "Transatlantic continued its solid performance despite the difficulties of the current marketplace. These results were achieved with disciplined underwriting throughout our domestic and international offices. We continue to grow as a market leader writing specialty covers, particularly complex casualty risks.
 "In the second quarter, we were able to substantially increase premium volume as we capitalized on the contraction of capacity in the London market and worldwide property reinsurance market. Our London premiums for the first six months of 1993 have more than tripled over the comparable 1992 period.
 "We have established a new division to write Latin American business. It will be based in Miami and headed by an executive with 20 years of experience in the region. We are optimistic about the future for this unit given the positive economic and political climate in Latin America combined with Transatlantic's international experience and capability."
 Transatlantic Holdings, Inc. (TRH) is a leading international reinsurance organization with operations throughout the United States and foreign offices in London, Hong Kong, Tokyo and Toronto. With assets exceeding $2.9 billion, its subsidiaries, Transatlantic Reinsurance Company and Putnam Reinsurance Company (each rated "A+ (Superior)" by A. M. Best Company), offer reinsurance capacity for a full range of products on both a treaty and facultative basis and have proven their strength, stability and service over the years. Our companies write all types of property and casualty risks from standard to complex, including professional liability and environmental liability.
 TRANSATLANTIC HOLDINGS, INC. AND SUBSIDIARIES
 Financial Highlights
 (in thousands, except per share data)
 Three Months Ended June 30, Percent
 1993 1992 Change
 Statement of Operations Data:
 Net premiums written $153,609 $120,496 27.5
 Net premiums earned 134,721 110,041 22.4
 Adjusted underwriting loss (12,258) (11,011) 11.3
 Net investment income 34,429 32,407 6.2
 Loss Ratio 79.2 80.7
 Expense Ratio 28.4 28.0
 Combined Ratio 107.6 108.7
 Realized capital gains $1,601 $486 229.4
 Operating income 23,772 21,882 8.6
 Other income (deductions) 24 (209) -
 Income before income taxes and
 cumulative effect of accounting
 changes 23,796 21,673 9.8
 Income before cumulative effect of
 accounting changes 21,654 18,313 18.2
 Cumulative effect of accounting
 changes (a) - - -
 Net income 21,654 18,313 18.2
 Per common share:
 Income before cumulative effect of
 accounting changes $0.94 $0.80 18.1
 Cumulative effect of accounting
 changes (a) - - -
 Net income $0.94 $0.80 18.1
 Weighted average common shares
 outstanding 22,885 22,864
 Six Months Ended June 30, Percent
 1993 1992 Change
 Statement of Operations Data:
 Net premiums written $282,579 $237,986 18.7
 Net premiums earned 264,699 235,572 12.4
 Adjusted underwriting loss (23,072) (20,118) 14.7
 Net investment income 68,149 63,877 6.7
 Loss Ratio 80.9 81.3
 Expense Ratio 27.3 27.0
 Combined Ratio 108.2 108.3
 Realized capital gains $762 $4,867 (84.3)
 Operating income 45,839 48,626 (5.7)
 Other deductions (784) (881) (11.0)
 Income before income taxes and
 cumulative effect of accounting
 changes 45,055 47,745 (5.6)
 Income before cumulative effect of
 accounting changes 41,000 40,344 1.6
 Cumulative effect of accounting
 changes (a) 46,340 - -
 Net income 87,340 40,344 116.5
 Per common share:
 Income before cumulative effect of
 accounting changes $1.79 $1.76 1.5
 Cumulative effect of accounting
 changes (a) 2.02 - -
 Net income $3.81 $1.76 116.3
 Weighted average common shares
 outstanding 22,884 22,863
 June 30, December 31,
 1993 1992
 Other Data:
 Investments and cash $2,085,271 $2,022,605
 Total assets 2,928,555 2,826,172(b)
 Net loss and loss adjustment
 expense reserves (c) 1,425,721 1,386,092
 Stockholders' equity 654,218 562,276
 Book value per common share $28.58 $24.57
 (a) Represents a benefit of $47,000 and a charge of $660 for the cumulative effect of adoption of accounting standards related to income taxes (SFAS No. 109) and postretirement benefits (SFAS No. 106), respectively.
 (b) Restated to reflect the adoption of the accounting standard related to the accounting and reporting for reinsurance (SFAS No. 113).
 (c) Represents loss and loss adjustment expense reserves net of reinsurance recoverable thereon.
 -0- 7/29/93
 /CONTACT: David W. Smith of Transatlantic Holdings, Inc., 212-770-2162/
 (TRH)


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

WB -- NY002 -- 7155 07/29/93 09:36 EDT
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