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USLICO REPORTS 1991 EARNINGS, DECLARES CASH DIVIDEND

 USLICO REPORTS 1991 EARNINGS, DECLARES CASH DIVIDEND
 ARLINGTON, Va., Feb. 28 /PRNewswire/ -- USLICO Corporation


(NYSE: USC) today reported 1991 earnings of $11.2 million, or $1.04 per share, compared to $24.7 million, or $2.28 per share for 1990. Results for the fourth quarter were a loss of $3.8 million, or 35 cents per share, in 1991, compared to net income of $4.5 million, or 42 cents, in 1990.
 Reported earnings for 1991 compared to 1990, summarized by major components, were:
 12 Months (after tax)
 1991 1990
 (In thousands)
 Life insurance operations $ 20,115 $ 22,816
 Health business (21,382) 1,108
 Interest and other (3,596) (4,936)
 Realized investment gains 1,568 368
 Net income (loss) from
 operations (3,295) 19,356
 Write-down on Liberian
 investment (7,189) --
 Discontinued property-casualty
 operations
 Subsidiaries sold 1991:
 Gain on sale 34,636 --
 Income (loss) prior to sale (916) 5,328
 Losses on reinsurance business (12,000) --
 Net Income $ 11,236 $24,684
 Fourth Quarter (after tax)
 1991 1990
 (In thousands)
 Life insurance operations $ 3,650 $ 4,033
 Health business (6,930) (492)
 Interest and other (918) (1,204)
 Realized investment gains 428 325
 Net income (loss) from
 operations (3,770) 2,662
 Discontinued property-casualty
 operations
 Subsidiaries sold 1991:
 Income prior to sale -- 1,827
 Net Income (Loss) $ (3,770) $ 4,489
 Charles V. Giuffra, chairman and C.E.O. of USLICO Corporation, said: "1991 was an important year for USLICO. We provided for all expected future losses from our non-life activities and sold our primary property and casualty companies. We have restructured our core life insurance business to intensify our marketing focus and eliminate redundant expenses. We believe we are now poised for future growth and profitability."
 HEALTH BUSINESS. The fourth quarter loss and the lower earnings for the full year 1991 were caused by a block of major medical business. As reported by the company on Feb. 3, all necessary steps have been taken to withdraw from the business. Reserves for losses and expenses associated with this business were provided in 1991, and further losses are not expected.
 LIBERIAN INVESTMENT. USLICO provided a full reserve during the third quarter of 1991 against its net investment of $7.2 million in The International Trust Company of Liberia, which operates a banking business in Liberia and administers Liberia's maritime program. The write-down was taken because of the continuing political and economic problems in Liberia.
 SALE OF P&C SUBSIDIARIES. USLICO sold its primary property- casualty operations in July 1991 for $96.5 million in cash. This sale produced a net after-tax gain of $34.6 million.
 LOSS ON P&C REINSURANCE. USLICO provided a reserve of $12 million during the third quarter of 1991 for projected losses and expenses from the property-casualty reinsurance company that it still retains after the sale of its other property-casualty operations. The higher losses resulted from a recent increase in the number of new pollution claims, submitted under reinsurance treaties written more than 10 years ago. The subsidiary ceased writing new business in 1986.
 SALES. USLICO reported an increase in total sales for the full year 1991, compared to 1990, with higher annuity and group life sales more than offsetting lower individual life sales. The results were reported as follows:
 12 Months Fourth Quarter
 1991 1990 1991 1990
 (Premiums in thousands)
 Life Insurance
 -- Individual $ 30,125 $ 35,035 $ 7,038 $ 9,514
 -- Group 13,266 8,316 1,538 1,823
 Annuities 242,943 172,993 42,281 47,766
 Total $286,334 $216,344 $50,857 $59,103
 HIGH QUALITY ASSETS. USLICO also reported that its life insurance subsidiaries continued to maintain exceptionally strong asset quality during 1991. As of Dec. 31, bonds rated below investment grade represented only 3.2 percent of the bond portfolio, and all of those bonds were current as to interest and principal payments. USLICO's consolidated 60-day mortgage delinquency rate was only 1.06 percent of the mortgage loan portfolio on a dollar percentage basis compared to the most recently published life insurance industry average of 5.61 percent.
 QUARTERLY DIVIDEND. USLICO also announced that its board of directors voted a quarterly dividend of 25 cents per share of common stock. The dividend will be paid on March 16, to stockholders of record March 9. USLICO Corporation continues the record of United Services Life Insurance Company, its predecessor company, of paying dividends for 41 consecutive years.
 SUMMARIZED FINANCIAL INFORMATION
 (In millions, except per share data)
 Fourth Quarter 12 Months
 1991 1990 1991 1990
 Revenue $ 96.1 $ 80.8 $393.3 $313.2
 Net Income (Loss) (3.8) 4.5 11.2 24.7
 Net Income (Loss from
 Life Operations (3.8) 2.7 (3.3) 19.4
 Net Income (Loss) from
 Life Operations
 Excluding Capital Gains (4.2) 2.4 (4.9) 19.0
 Net Capital Gains (Losses)
 (after-taxes) 0.4 0.3 1.6 0.4
 Earnings Per Share:
 Primary
 Income (Loss) from
 Life Operations $(0.35) $.25 $(0.31) $1.79
 Liberian Write-down -- -- (.67) --
 Income (Loss) from
 Continuing Operations (.35) $.25 (.98) 1.79
 Discontinued Operations -- .17 2.02 .49
 Net Income (Loss) $(0.35) $0.42 $ 1.04 $2.28
 Fully Diluted
 Income (Loss) from
 Life Operations $(0.35) $ .25 $(0.31) $1.74
 Liberian Write-down -- -- (.67) --
 Income (Loss) from
 Continuing Operations (.35) .25 (.98) 1.74
 Discontinued Operations -- .16 2.02 .37
 Net Income (Loss) $(0.35) $0.41 $1.04 $2.11
 Weighted Average Shares Outstanding
 1991 10,776,748
 1990 10,826,340
 USLICO Corporation is an insurance holding company headquartered in Arlington. Its three life insurance subsidiaries focus on selected market niches, including U.S. military personnel, individual annuity, business and payroll deduction sales.
 -0- 2/28/92
 /CONTACT: Shirley Sullivan, investor relations, USLICO Corporation, 703-875-3415/
 (USC) CO: USLICO Corporation ST: Virginia IN: INS SU: ERN DIV


MH-DC -- DC020 -- 3801 02/28/92 14:59 EST
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