(April 26 – 14:05 ET) – Clarica Life Insurance Company is reporting shareholder net income of $70 million for the quarter ending March 31, 2000 representing $0.52 per share. This is a 13% increase over pro forma net income of $62 million for the first quarter 1999, or $0.46 per share.
Growth in the first quarter was primarily due to strong equity performance and positive credit experience, says Clarica in a press release. The company expects to see this growth level in earnings per share for the balance of the year including the impact of continued improvement in group insurance earnings and the addition of the life retrocession business. Return on shareholders’ equity for the first quarter of 2000 was 11.4%, compared to 11.2% for the first quarter of 1999.
Total premiums and deposits were $1,845 million for the first quarter of 2000. This compares to $1,597 million for the first quarter of 1999, representing a 15% increase. This growth is due primarily to increases in retail market based fund deposits and annuity premiums.
“Clarica’s first quarter earnings reflect the company’s ability to deliver on its commitments,” says Bob Astley, president and CEO. “In particular, we have achieved a significant increase in retail market-based fund deposits this quarter. I am pleased with our overall performance and remain confident in our ability to deliver on our earnings per share and return on equity commitments.”
Only income earned after the conversion date of July 21, 1999 is attributable to shareholders. The pro forma results represent the earnings for the period that would have been attributable to shareholders if Clarica demutualized January 1, 1999. In order to provide meaningful analysis, this pro forma income is used in all year-over-year comparisons.
-IE Staff