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TRANSATLANTIC HOLDINGS, INC. ANNOUNCES FIRST QUARTER EARNINGS -- STOCKHOLDERS' EQUITY SURPASSES $600 MILLION

 NEW YORK, April 29 /PRNewswire/ -- Transatlantic Holdings, Inc. (NYSE: TRH) today reported that its net income in the first quarter of 1993 amounted to $65.7 million, or $2.87 per common share, compared with $22.0 million, or $0.96 per common share, in the same period of 1992.
 The 1993 quarter's net income 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 of accounting pronouncements for income taxes (SFAS No. 109) and postretirement benefits (SFAS No. 106).
 Following is a comparative table of first quarter information in millions, except per common share results:
 TRANSATLANTIC HOLDINGS, INC. AND SUBSIDIARIES
 First Quarter
 1993 1992
 Net income, as reported $65.7 $22.0
 Income, as adjusted (A) $19.9 $18.1
 PER COMMON SHARE RESULTS:
 Net income, as reported $2.87 $0.96
 Income, as adjusted (A) $0.87 $0.79
 Weighted average common shares outstanding 22.9 22.9
 (A) Adjusted to exclude cumulative effect of accounting changes, realized capital gains (losses), net of income taxes, and first quarter 1992 "fresh start" tax benefit.
 Income before income taxes and the cumulative effect of accounting changes decreased to $21.3 million in the first quarter of 1993 from $26.1 million recorded in the same period of 1992. Included in these results are pre-tax realized capital losses of $839,000 in the 1993 quarter and pre-tax realized capital gains of $4.4 million in the same 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 this quarter. Accordingly, no "fresh start" benefit is reflected in the first quarter 1993 tax provision. In the first quarter of 1992, the "fresh start" tax benefit reduced the provision for income taxes by $475,000.
 At March 31, 1993, TRH's consolidated assets and stockholders' equity were approximately $2.9 billion and $632.4 million, respectively, representing increases of $80.5 million and $70.1 million, respectively, over the December 31, 1992 amounts. Consolidated assets at December 31, 1992 have been restated to reflect the "grossing up" provisions of SFAS No. 113, "Accounting and Reporting for Reinsurance of Short-Duration and Long-Duration Contracts," which were implemented in the first quarter of 1993. Reinsurance receivables and prepaid reinsurance premiums must now be reported separately as assets rather than via the previous practice of netting such amounts with the liabilities for unpaid losses and loss adjustment expenses and unearned premiums, respectively. These changes do not affect stockholders' equity. The remaining provisions of SFAS No. 113, which address recognition of costs and revenues of reinsurance and establish conditions of reinsurance accounting, have been adopted in the first quarter of 1993 and had no material effect on the financial statements.
 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. Our conservative balance sheet contains no real estate, junk bonds or long term debt.
 Net loss and loss adjustment expense reserves of $1.4 billion increased $21.6 million in the first quarter of 1993.
 Net premiums written in the first quarter increased 9.8 percent to $129.0 million from $117.5 million in last year's first quarter.
 The combined ratio was 108.6 for the first quarter of 1993 versus 107.7 for the comparable 1992 quarter. The first quarter loss ratios for 1993 and 1992 were 82.7 and 81.8, respectively. The combined and loss ratios for the 1993 period include the impact of $4 million of losses related to the March blizzard and the World Trade Center bombing. The underwriting expense ratio was 25.9 in the first quarters of 1993 and 1992. This ratio is similar to Transatlantic's full year 1992 underwriting expense ratio which was one of the lowest ratios among major reinsurers according to Reinsurance Association of America statistics.
 Net investment income rose 7.1 percent to $33.7 million in the first quarter of 1993 from $31.5 million in last year's first quarter.
 In the first quarter of 1993, realized capital losses, net of income taxes, totalled $554,000 versus realized capital gains, net of income taxes, of $3.5 million in the same 1992 quarter.
 In the first quarter of 1993, a dividend of $0.07 per common share was declared by the Board of Directors to stockholders of record as of June 8, 1993, payable on June 22, 1993.
 Commenting on these results, Joseph V. Taranto, President, said, "Transatlantic continues to post solid results. Our fiscal integrity and strong balance sheet enable Transatlantic to provide stability and capacity in a changing marketplace that is still sorting through the after-effects of record 1992 catastrophe losses.
 "We continued to advance our position as a leading specialty casualty market. Rate corrections, which are underway as a result of record 1992 catastrophe losses, allowed for growth in our foreign and domestic property portfolio. A significant portion of such growth emanated from our foreign branch operations, particularly in London, where we continue to avail ourselves of the opportunities arising from capacity shortages in the London market.
 "Transatlantic's size and financial strength represent quality security to the industry. Our stockholders' equity climbed to more than $630 million, resulting in a compound annual growth rate greater than 18 percent since December 31, 1986. These levels do not reflect the market value of bonds, which exceeds the carrying value of $1.8 billion by $158.9 million."
 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 March 31, Percent
 1993 1992 Change
 Statement of Operations Data:
 Net premiums written $128,970 $117,490 9.8
 Net premiums earned 129,978 125,531 3.5
 Adjusted underwriting loss (10,814) (9,107) 18.7
 Net investment income 33,720 31,470 7.1
 Loss Ratio 82.7 81.8
 Expense Ratio 25.9 25.9
 Combined Ratio 108.6 107.7
 Realized capital gains (losses) ($839) $4,381 --
 Operating income 22,067 26,744 (17.5)
 Other deductions (808) (672) 20.2
 Income before income taxes and
 cumulative effect of accounting
 changes 21,259 26,072 (18.5)
 Income before cumulative effect of
 accounting changes 19,346 22,031 (12.2)
 Cumulative effect of accounting
 changes (A) 46,340 -- --
 Net income 65,686 22,031 198.2
 Per common share:
 Income before cumulative effect
 of accounting changes $0.85 $0.96 (12.3)
 Cumulative effect of accounting
 changes (A) 2.02 -- --
 Net income $2.87 $0.96 197.9
 Weighted average common shares
 outstanding 22,883 22,863
 March 31, December 31,
 1993 1992
 Other Data:
 Investments and cash $2,050,928 $2,022,605
 Total assets 2,906,692 2,826,172 (B)
 Net loss and loss adjustment
 expense reserves (C) 1,407,730 1,386,092
 Stockholders' equity 632,352 562,276
 Book value per common share $27.63 $24.57
 (A) Represents a benefit of $47,000 and a charge of $660 for the cumulative effect of adoption of accounting pronouncements related to income taxes (SFAS No. 109) and postretirement benefits (SFAS No. 106), respectively.
 (B) Restated to reflect the adoption of the accounting pronouncement 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- 4/29/93
 /CONTACT: David W. Smith of Transatlantic Holdings Inc., 212-770-2162/
 (TRH)


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

LD -- NY010 -- 2475 04/29/93 09:08 EDT
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