Provident Life and Accident Insurance Company Reports First Quarter 1995 Results

Strategic Insights -

Provident Life and Accident Insurance Company of America, a leading provider of disability and life insurance, announced its first quarter 1995 results, marking a decline in net income compared to the same period in 1994. Despite this, the company's revenue excluding net realized investment gains and losses showed a 4.4% increase, reaching $724.0 million. The company's individual life and disability segment reported a loss, primarily due to adverse claim activity in the individual non-cancelable disability income contracts. However, the employee benefits segment saw improved results, with the group long-term disability line of business producing a loss, but offset by gains in other non-medical employee benefit lines.

Key Takeaways:

  • The company reported a net income of $16.3 million ($0.29 per common share) for the first quarter of 1995, compared to $35.6 million ($0.72 per common share) for the first quarter of 1994.
  • Net realized after-tax investment losses amounted to $2.5 million ($0.05 per common share) in the first quarter of 1995 and $3.7 million ($0.08 per common share) in the first quarter of 1994.
  • After-tax operating earnings (excluding net realized investment gains and losses) were $18.8 million ($0.34 per common share) in the first quarter of 1995, compared to $39.3 million ($0.80 per common share) in the first quarter of 1994.
  • The individual life and disability segment reported a loss before net realized investment gains and losses and federal income taxes of $16.8 million in the first quarter of 1995, compared to income of $14.2 million in the first quarter of 1994.
  • The group long-term disability line of business produced a loss of $3.5 million in the first quarter of 1995, compared to income of $1.6 million in the year ago quarter.
  • Premium income in the employee benefits segment increased 11.0% to $130.7 million in the first quarter of 1995, compared to $117.7 million in the first quarter of 1994.
  • Book value per common share was $27.59 at March 31, 1995, compared to $29.47 at March 31, 1994 and $22.33 at December 31, 1994.

Statistics:

  • Revenue excluding net realized investment gains and losses: $724.0 million in the first quarter of 1995, an increase of 4.4% from $693.7 million in the first quarter of 1994.
  • Net income per common share: $0.29 in the first quarter of 1995, compared to $0.72 in the first quarter of 1994.
  • After-tax operating earnings: $18.8 million ($0.34 per common share) in the first quarter of 1995, compared to $39.3 million ($0.80 per common share) in the first quarter of 1994.
  • Individual life and disability segment loss: $16.8 million in the first quarter of 1995.
  • Group long-term disability line of business loss: $3.5 million in the first quarter of 1995.

Sources:

  • "Provident Life and Accident Insurance Company of America Reports First Quarter 1995 Results" PRNewswire, May 1, 1995.
  • Provident Life and Accident Insurance Company of America, first quarter 1995 earnings release.