Printer Friendly

ZRC REPORTS 1993 THIRD QUARTER RESULTS

 NEW YORK, Nov. 9 /PRNewswire/ -- Zurich Reinsurance Centre Holdings, Inc. (NYSE: ZRC) reported after-tax net operating income, excluding realized capital gains, for the quarter ended Sept. 30, 1993 of $3.7 million, or $.14 per share compared to a loss of $4.6 million, or $.27 per share for the third quarter of 1992. Realized capital gains (net of tax) were $5.0 million or approximately $.19 per share compared to $0.3 million or $.02 per share for the third quarter of 1992.
 Net income for the third quarter of 1993 was $8.7 million compared to a loss of $4.3 million for the comparable 1992 period. This increase is principally due to the growth in net investment income to $8.5 million, compared with $3.3 million for the 1992 quarter, pre-tax realized investment gains of $7.9 million (1992 quarter: $0.4 million) and offset in part by increased other operating costs and expenses. In addition, the third quarter 1992 results were affected by property catastrophe claims activity and related reinstatement premiums in the amount of $6.1 million.
 Net income for the nine months ended Sept. 30, 1993 was $16.7 million compared to a loss of $2.1 million in 1992. The majority of the difference in net income between the two periods is derived from pre-tax investment income of $19.9 million for 1993 compared to $9.8 million in the first nine months of 1992 and pre-tax realized investment gains of $21.1 million in 1993 compared with $0.6 million for 1992. These increases in net investment income and pre-tax realized capital gains for the three and nine month 1993 periods were attributable to the company's investment of the proceeds from its public offering in May 1993 and the subsequent restructuring of ZRC's investment portfolio in connection with its acquisition of Zurich Reinsurance Company of America.
 Net premiums written for the third quarter of 1993 increased to $29.3 million or 108 percent over the comparable 1992 period. Net earned premiums for the third quarter of 1993 increased to $25.8 million or 164 percent over the comparable 1992 period. For the nine months ended Sept. 30, 1993, net premiums written increased to $73.1 million or 93 percent and net earned premiums increased to $62.4 million or 98 percent over the comparable 1992 period. Premium growth in both periods is attributed to increased participations on renewals of both treaty and facultative business and new submissions underwritten. Commenting on the company's activities, Steven M. Gluckstern, chairman, president and CEO of ZRC said, "We felt our July 1st and Oct. 1st renewal efforts were successful and reflect the growing acceptance of ZRC in the broker marketplace. We continue to perform to our expectations in regard to our hiring process and our business development opportunities and are pleased with this quarter's results.
 "Two notable events not included in this quarter's results were the issuance of $200 million of 30-year corporate debt and our investment in Centre Cat, a Bermuda-based property catastrophe reinsurer affilated with Centre Reinsurance Companies. We feel the proceeds from our debt offering have provided the company the means through which we can take advantage of strategic marketing alliances, like this investment in Centre Cat, as and when the opportunities arise."
 Other operating costs and expenses increased to $4.1 million in the third quarter of 1993 and were $9.4 million for the nine months ended Sept. 30, 1993. Start-up expenditures in building the company's infrastructure, including opening new branch facultative offices and hiring personnel in advance of future premiums are the primary reasons for this increase.
 ZRC issued 8.55 million shares in an initial public offering on May 12, 1993 and acquired Zurich Reinsurance Company of America (ZRA) on May 18, 1993. Therefore per share amounts cited herein are not comparable.
 Headquartered in New York, Zurich Reinsurance Centre Holdings, Inc., through its operating subsidiary, is the principle underwriting affiliate of the Zurich Insurance Company and Centre Reinsurance Companies in the North American market for broker traditional property and casualty reinsurance. ZRC is 57 percent owned by Centre Reinsurance Companies, 9 percent owned by Fund American Enterprises, Inc. and its subsidiaries and 34 percent publicly held. The company has branch offices in Stamford, Conn., Atlanta and San Francisco.
 Please note: The following 1993 consolidated financial information was prepared using a similar method of accounting to the pooling of interest method and includes the results of operations of ZRC as if the acquisition had occurred on Jan. 1, 1993. Although the results of ZRC's predecessor company, Zurich Reinsurance Company of America, have been included for comparative purposes, the management of ZRC believes such comparison is limited in its usefulness as the operation of the two companies differ substantially.
 ZURICH REINSURANCE CENTRE HOLDINGS, INC.
 1993 Third Quarter Financial Highlights
 (Unaudited, dollars in thousands, except per share amounts)
 Three Months Ended Percent
 Sept. 30, 1993 1992(a) Change
 Summary Performance Data:
 Gross premiums written $31,833 $21,837 46
 Net premiums written 29,287 14,064 108
 Pretax net investment income 8,546 3,268 161
 Realized capital gains, after tax 4,990 277 1,701
 Operating income (loss), after tax 3,744 (4,555) n/m
 Net income (loss) 8,734 (4,278) n/m
 Statutory Ratios (in percent):
 Loss ratio 76.6 143.4
 Commission ratio 22.1 33.6
 Other underwriting expense ratio 15.0 7.8
 Combined ratio 113.7 184.8
 Per Share Data (primary and fully diluted):
 Weighted average shares outstanding
 (in 000's) 26,074 17,000
 After-tax operating (loss) income,
 excluding realized gains $ 0.14 $ (0.27)
 Realized gains, net of tax 0.19 0.02
 Net income (loss) 0.33 (0.25)
 Nine Months Ended Percent
 Sept. 30, 1993 1992(a) Change
 Summary Performance Data:
 Gross premiums written $84,908 $49,323 72
 Net premiums written 73,063 37,922 93
 Pretax net investment income 19,941 9,841 103
 Realized capital gains, after tax 13,733 428 n/m
 Operating income (loss), after tax 2,942 (2,564) n/m
 Net income (loss) 16,675 (2,136) n/m
 Statutory Ratios (in percent):
 Loss ratio 86.1 94.3
 Commission ratio 27.1 29.3
 Other underwriting expense ratio 12.7 7.9
 Combined ratio 125.8 131.5
 Per Share Data (primary and fully diluted):
 Weighted average shares outstanding
 (in 000's) 21,751 17,000
 After-tax operating (loss) income,
 excluding realized gains $ 0.14 $ (0.15)
 Realized gains, net of tax 0.63 0.02
 Net income (loss) 0.77 (0.13)
 Balance Sheet Data: Sept. 30, 1993 Dec. 31, 1992(a)
 Cash and invested assets $ 715,885 $ 169,185
 Stockholders' equity 636,846 58,382
 Book value per share 24.41 n/m
 Statutory surplus 612,808 104,059
 (a) The historical financial information of Zurich Reinsurance Company of America, the predecessor company, has been included for comparative purposes.
 -0- 11/9/93
 /CONTACT: Elizabeth A. Richardson, vice president - investor relations of ZRC Holdings, Inc., 212-898-5050, or Andrew R. Baer or Tracey T. Stearns both of Kekst and Company, 212-593-2655/
 (ZRC)


CO: Zurich Reinsurance Centre Holdings, Inc. ST: New York IN: INS SU: ERN

TM-LD -- NY009 -- 2058 11/09/93 08:20 EST
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:Nov 9, 1993
Words:1213
Previous Article:HORSEHEAD RESOURCE DEVELOPMENT REPORTS THIRD QUARTER RESULTS
Next Article:TKT RAISES $8.1 MILLION IN PRIVATE PLACEMENT
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters