PTA Announces Second Quarter Earnings
ALLENTOWN, Pa., Aug. 13 /PRNewswire/ -- Penn Treaty American Corporation (NYSE: PTA - news) today announced second quarter 2001 net income of $2,430,000 or $.20 per share from basic and diluted earnings. Net income for the same period in 2000 was $4,788,000 or $.56 per share on a diluted basis.
Premium revenue for the 2001 quarter increased 3.7% to $90,039,000. The increase in premium revenue is attributable to renewal long-term care premiums, which increased 25.4%. Primarily as a result of the Company's cessation of new business in certain key states, new long-term care premium revenue declined 50.5% to $12,299,000.
Following the issuance of approximately 11,550,000 additional shares in the Company's Rights Offering in May, book value per share stood at $11.47 as of June 30, 2001.
Earnings for the quarter were negatively impacted by approximately $6,000,000 in additional claim reserves as newly reported claims increased. The Company has maintained higher reserves in the event this is a developing trend.
Despite increased expenditures for actuarial, accounting and legal fees during the 2001 quarter, PTA expenses grew 5.7% from the prior year.
For the six month period ended June 30, 2001, PTA reported net income of $94,000 or $.01 per diluted share, compared to $10,279,000 and $1.20 per diluted share during the first six months of 2000. Premium revenue increased during the first six months of 2001 by 7.6% to $186,058,000, compared to $172,863,000 in 2000.
PTA continues to work closely with state insurance regulators to affirm its reserving and surplus levels. The Company contributed $18,000,000 of the proceeds from its Rights Offering to the statutory surplus of its insurance subsidiaries. PTA also recently announced its intent to sell its disability business for an undisclosed amount.
The Company will host an analyst conference call on Tuesday, August 14, at 2:00 EDT. To access the call, dial 1.888.400.7916. A replay is available until midnight, August 19, at 1.800.475.6701 - Access Code 599642.
PTA, through its wholly owned direct and indirect subsidiaries, Penn Treaty Network America Insurance Company, American Network Insurance Company, American Independent Network Insurance Company of New York, Penn Treaty (Bermuda), Ltd., United Insurance Group Agency, Inc., Network Insurance Senior Health Division and Senior Financial Consultants Company, is primarily engaged in the underwriting, marketing and sale of individual and group accident and health insurance products, principally covering long term nursing home and home health care. PTA is licensed to conduct business in 50 states and the District of Columbia. |
