Penn Treaty American Corporation Announces Third Quarter EPS of $.22
ALLENTOWN, Pa., Nov. 14 /PRNewswire/ -- Penn Treaty American Corporation (NYSE: PTA) today announced net income of $4.1 million for the third quarter of 2001. The results represent diluted earnings per share of $.22. For the nine month period ending September 30, 200l, PTA reported net income of $4.2 million and earnings per share of $.33.
The quarterly results include non-operating securities losses of approximately $1.8 million. The securities losses include an impairment charge of $770,000 for declines in its equities securities portfolio, which the Company deemed other than temporary. Excluding the impact of these non- operating items, net income and earnings per share during the quarter were $5.2 million and $.28 per share, respectively.
Effective September l, 200l, PTA ceded its individual disability business to an unaffiliated insurer for a ceding allowance of approximately $4.9 million. While the ceding allowance is deferred for GAAP accounting purposes, the transferal of reserves reduces premium revenue and benefit expense in the current quarter. Excluding the impact of the accounting for the transaction, premium revenue of $90.6 million dropped $1.4 million below the 3rd quarter of 2000. Premium for the nine months ending September 30, 2001, was $276.6 million compared to $264.8 million in 2000. Renewal premium grew 29% and 27%, for the quarter and nine months, respectively. New premium dropped significantly during the third quarter, decreasing 74% to $7.1 million. Effective September 11, 2001, PTA discontinued the sale nationally of new long-term care insurance policies until it completed and received approval of its Corrective Action Plan with the Pennsylvania Insurance Department. The Company is continuing discussions with the Insurance Department.
Book value at September 30, 2001 grew to $12.25 per share. The Company's loss ratio, excluding the impact of the disability transaction, was 63.2% for the third quarter 2001, compared to 66.5% for the third quarter of 2000. Reductions in newly reported claims accounted for the favorable results.
The Company will host an investor and analyst conference call to discuss its third quarter results at 11:00 a.m. EST, Thursday, November 15. The call can be accessed at 1.866.535.8526 and asking for the Penn Treaty American conference. A replay of the call will be made available from 2:30 p.m., November 15 until 11:59 p.m., November 20, by calling 1.800.475.6701 with access code 612180.
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. |
