Newspaper article THE JOURNAL RECORD

Profits Up 28% for State-Based Insurance Firms

Newspaper article THE JOURNAL RECORD

Profits Up 28% for State-Based Insurance Firms

Article excerpt

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Profits in 1990 climbed 28 percent to $43 million for the 28 largest Oklahoma-based life insurance companies.

Assets rose 2 percent to $1.5 billion at year-end 1990, while premiums climbed 2 percent to $552.9 million and investment income increased 7 percent to $111.7 million.

Equity capital, however, declined 4 percent to $279.1 million. Direct business in Oklahoma as a percent of total business fell to 24.3 percent compared to 25.8 percent a year earlier.

Six corporations' bottom lines closed 1990 in the red, while two had negative net worth. Only 46 percent of the 28 firms improved their asset bases through the last year.

Progress Life and Professional Investors, both in Tulsa, are in conservatorship, while Standard Life & Accident in Enid is in receivership.

Higher investment income levels were reported by 68 percent of the companies, however, while 57 percent added to their equity capital and one-half generated higher premium levels.

The return on invested assets rose in the fourth quarter of 1990 to 7.73 percent from 7.47 percent in the third period, reflecting the $13.9 million dividend received by NationalCare of Oklahoma City from Reserve National in Oklahoma City. NationalCare is the sole stockholder of Reserve National and the current dividend compares to $2.9 million in the prior year. NationalCare in turn paid out $4 million in dividends in 1990 vs. $750,000 in 1989. The return on net worth was 15.4 percent at year end, compared to 11.3 percent a year earlier.

Old Surety in Oklahoma City once again led the list in:

- Asset growth with a gain of 80 percent.

- Premium growth, increasing 79 percent.

American Reserve in Tulsa was on top in net worth growth with a 57 percent increase. NationalCare was at the top of the list in investment income gains posting a 326 percent increase. …

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