Printer Friendly

TRANSATLANTIC HOLDINGS, INC. ANNOUNCES THIRD QUARTER EARNINGS INCREASE; ASSETS SURPASS 3 BILLION DOLLARS

 NEW YORK, Oct. 28 /PRNewswire/ -- Transatlantic Holdings, Inc. (NYSE: TRH) today reported that its net income in the third quarter of 1993 increased to $23.0 million, or $1.01 per common share, compared with $6.7 million, or $0.30 per common share, in the same period of 1992. For the first nine months of 1993, net income increased to $110.4 million, or $4.82 per common share, versus $47.1 million, or $2.06 per common share in the year-ago period.
 Net income for the first nine 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 third quarter and nine months information in millions, except per common share results:
 Third Quarter Nine Months
 1993 1992 1993 1992
 Net income, as reported $23.0 $6.7 $110.4 $47.1
 Income, as adjusted (A) $21.2 $6.7 $ 61.7 $42.5
 PER COMMON SHARE RESULTS:
 Net income, as reported $1.01 $.30 $ 4.82 $2.06
 Income, as adjusted (A) $ .93 $.30 $ 2.70 $1.86
 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 (losses), net of income taxes, and the "fresh start" tax benefit, as applicable.
 Income before income taxes and the cumulative effect of accounting changes increased to $24.2 million in the third quarter of 1993 from $7.5 million recorded in the same period of 1992. For the first nine months of 1993, income before income taxes and the cumulative effect of accounting changes totalled $69.2 million versus $55.2 million for the comparable prior year period.
 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 of 1993. Accordingly, no "fresh start" benefit is reflected in the 1993 tax provisions. In the third quarter and first nine months of 1992, the "fresh start" tax benefit reduced the provision for income taxes by $60,000 and $774,000, respectively.
 At September 30, 1993, TRH's consolidated assets and stockholders' equity were $3.0 billion and $677.4 million, respectively. Stockholders' equity has increased more than 20 percent in 1993.
 The Company's conservative fixed maturity investment portfolio consists primarily of diversified and liquid taxable bonds and tax- exempt municipal bonds and the equity portfolio emphasizes quality growth companies. At September 30, 1993, the market value of bonds exceeded the carrying value of $1.9 billion by $208.2 million. The balance sheet contains no junk bonds, real estate or long-term debt.
 Net loss and loss adjustment expense reserves increased $28.2 million to $1.5 billion in the third quarter of 1993, bringing the increase in net loss and loss adjustment expense reserves for the first nine months of 1993 to $67.9 million.
 Net premiums written in the third quarter increased 37.7 percent to $164.2 million from $119.2 million in last year's third quarter. For the first nine months of 1993, net premiums written increased 25.1 percent to $446.8 million from $357.2 million.
 The combined ratio was 107.7 for the third quarter of 1993 versus 121.2 for the comparable 1992 quarter. The third quarter loss ratios for 1993 and 1992 were 81.9 and 97.9, respectively. The underwriting expense ratios for the third quarters of 1993 and 1992 were 25.8 and 23.3, respectively. For the first nine months of 1993, the combined ratio was 108.0 versus 112.6 for the samep?rior year period. The loss ratios were 81.3 and 86.9, respectively. The first nine months underwriting expense ratio was 26.7 versus 25.7 for the comparable prior year period. The combined and loss ratios in the 1993 third quarter include the impact of $6 million of losses related to the Midwest floods and Typhoon Yancy. The prior 1993 quarters include $8.5 million of losses related to the March blizzard, World Trade Center bombing and the London Bishopsgate bombing. The combined and loss ratios in the third quarter of 1992 include the impact of $18 million of losses related to Hurricanes Andrew and Iniki. The second quarter of 1992 includes $5 million of losses arising from the civil unrest in Los Angeles, the London St. Mary's Axe bombing and the Chicago flood.
 Net investment income rose 7.0 percent to $35.1 million in the third quarter of 1993 from $32.8 million in last year's third quarter. For the first nine months of 1993, net investment income rose 6.8 percent to $103.2 million from $96.7 million in the comparable prior year period.
 In the third quarter of 1993, realized capital gains, net of income taxes, totalled $1.8 million versus realized capital losses, net of income taxes, of $80,000 in the same 1992 quarter. For the first nine months of 1993 and 1992, realized capital gains, net of income taxes, were $2.3 million and $3.8 million, respectively.
 In the third quarter of 1993, a dividend of $0.07 per common share was declared by the Board of Directors to stockholders of record as of December 7, 1993, payable on December 21, 1993.
 Commenting on these results, Joseph V. Taranto, President, said, "The significant increase in 1993 premium volume over the prior year was achieved by capitalizing on opportunities in the property market and the London market, and to a lesser extent, by growth in specialty casualty lines. Led by a threefold increase in London branch premiums, foreign business accounted for 20 percent of 1993 premium volume for the nine months compared to 13 percent a year ago.
 "Transatlantic's full array of products and international scope, including our new Latin American division, allow us to be selective and grow our book of business in markets that offer the greatest opportunities."
 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 $3.0 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 September 30, Percent
 1993 1992 Change
 Statement of Operations Data:
 Net premiums written $164,229 $119,244 37.7
 Net premiums earned 145,300 118,912 22.2
 Adjusted underwriting loss (12,825) (25,232) (49.2)
 Net investment im?e 35,095 32,801 7.0
 Loss Ratio 81.9 97.9
 Expense Ratio 25.8 23.3
 Combined Ratio 107.7 121.2
 Realized capital gains (losses) $2,799 ($100) --
 Operating income 25,069 7,469 235.6
 Other income (deductions) (897) 22 --
 Income before income taxes and
 cumulative effect of accounting
 changes 24,172 7,491 222.7
 Income before cumulative effect of
 accounting changes 23,031 6,717 242.9
 Cumulative effect of accounting
 changes (A) -- -- --
 Net income 23,031 6,717 242.9
 Per common share:
 Income before cumulative effect of
 accounting changes $1.01 $0.30 242.5
 Cumulative effect of accounting
 changes (A) -- -- --
 Net income $1.01 $0.30 242.5
 Weighted average common shares
 outstanding 22,887 22,866
 Nine Months Ended September 30, Percent
 1993 1992 Change
 Statement of Operations Data:
 Net premiums written $446,808 $357,230 25.1
 Net premiums earned 409,999 354,484 15.7
 Adjusted underwriting loss (35,897) (45,350) (20.8)
 Net investment income 103,244 96,678 6.8
 Loss Ratio 81.3 86.9
 Expense Ratio 26.7 25.7
 Combined Ratio 108.0 112.6
 Realized capital gains $3,561 $4,767 (25.3)
 Operating income 70,908 56,095 26.4
 Other deductions (1,681) (859) 95.7
 Income before income taxes and
 cumulative effect of accounting
 changes 69,227 55,236 25.3
 Income before cumulative effect of
 accounting changes 64,031 47,061 36.1
 Cumulative effect of accounting
 changes (A) 46,340 -- --
 Net income 110,371 47,061 134.5
 Per common share:
 Income before cumulative effect of
 accounting changes $2.80 $2.06 35.9
 Cumulative effect of accounting
 changes (A) 2.02 -- --
 Net income $4.82 $2.06 134.3
 Weighted average common shares
 outstanding 22,885 22,864
 September 30, December 31,
 1993 1992
 Other Data:
 Investments and cash $2,176,296 $2,022,605
 Total assets 3,025,425 2,826,172 (B)
 Net loss and loss adjustment
 expense reserves (C) 1,453,946 1,386,092
 Stockholders' equity 677,361 562,276
 Book value per common share $29.60 $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- 10/28/93
 /CONTACT: David W. Smith, 212-770-2162/
 (TRH)


CO: Transatlantic Holdings, Inc. ST: IN: SU:

CK -- NY004 -- 7733 10/28/93 09:09 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 28, 1993
Words:1645
Previous Article:RAYTHEON TEAM AWARDED MAJOR ARMY DEVELOPMENT CONTRACT
Next Article:GREENFIELD INDUSTRIES, INC., ANNOUNCES THIRD QUARTER RESULTS
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters