Note 15 Interim Financial Data (Unaudited)
Quarter
(in millions except per share data) First Second Third Fourth
Summary Quarterly Results:*
Revenues 1994 $786 $812 $ 835 $877
1993 891 837 775 820
1992 952 920 1,024 816
Income from continuing operations
before cumulative effect of adopting
new accounting standards 1994 23 74 76 64
1993 23 26 21 60
1992 4 7 12 13
Loss from discontinued operations 1994 - - - -
1993 - - - -
1992 - (1) (6) -
Income from cumulative effect of
adopting new accounting standards 1994 - - - -
1993 38 - - -
1992 - - - -
Net income 1994 23 74 76 64
1993 61 26 21 60
1992 4 6 6 13
Primary Earnings per Common Share:*
Income (loss) from continuing operations
before cumulative effect of adopting
new accounting standards 1994 $.11 $.66 $.67 $.54
1993 .12 .15 .10 .52
1992 (.09) (.06) - .01
Loss from discontinued operations 1994 - - - -
1993 - - - -
1992 - (.01) (.07) -
Income from cumulative effect of
adopting new accounting standards 1994 - - - -
1993 .42 - - -
1992 - - - -
Net income (loss) 1994 .11 .66 .67 .54
1993 .54 .15 .10 .52
1992 (.09) (.07) (.07) .01
Fully Diluted Earnings per Common Share:*
Income (loss) from continuing operations
before cumulative effect of adopting
new accounting standards 1994 $.11 $.56 $.58 $.47
1993 .16 .15 .10 .47
1992 (.09) (.06) - .01
Loss from discontinued operations 1994 - - - -
1993 - - - -
1992 - (.01) (.07) -
Income from cumulative effect of
adopting new accounting standards 1994 - - - -
1993 .32 - - -
1992 - - - -
Net income (loss) 1994 .11 .56 .58 .47
1993 .48 .15 .10 .47
1992 (.09) (.07) (.07) .01
*The fourth quarter 1994 results reflect $183 million in facilities exit
costs as discussed in Note 6, and a $210 million tax benefit as discussed in
Note 10. The first quarter 1993 results include a $38 million net benefit of
adopting two new accounting standards. The third quarter 1992 results reflect
$142 million in realized gains on investments, $80 million of catastrophe
losses as a result of Hurricane Andrew, and $51 million of restructuring
charges. The sum of quarterly income (loss) per share amounts may not equal
the full year's amount due to stock issuances during presented periods.
USF&G Corporation
Report of Independent Auditors
Board of Directors
USF&G Corporation
We have audited the accompanying consolidated statement of financial position
of USF&G Corporation as of December 31, 1994, 1993, and 1992, and the related
consolidated statements of operations, shareholders' equity, and cash flows
for the years then ended. These financial statements are the responsibility
of the Corporation's management. Our responsibility is to express an opinion
on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of USF&G
Corporation at December 31, 1994, 1993, and 1992 and the consolidated results
of its operations and its cash flows for the years then ended, in conformity
with generally accepted accounting principles.
In 1993, as a result of adopting new accounting standards and as discussed in
Notes 1, 2, 9, and 10 to the consolidated financial statements, the
Corporation changed its methods of accounting for certain investments in debt
and equity securities, postretirement benefits other than pensions, and
income taxes.
ERNST & YOUNG LLP
Baltimore, Maryland
February 24, 1995,
except for Note 1.11, as to which the date is
May 22, 1995
USF&G Corporation
Shareholders' Information
Corporate Headquarters/Home Office
100 Light Street
Baltimore, Maryland 21202
(410) 547-3000
Annual Meeting
The Annual Meeting of Shareholders will be held Wednesday, May 17, 1995, at
9:00 a.m. at the Sheraton Inner Harbor Hotel, 300 South Charles Street,
Baltimore, Maryland.
Reports Filed with the Securities and Exchange Commission
A copy of USF&G Corporation's Annual Report on Form 10-K or Quarterly Report
on Form 10-Q, as filed with the Securities and Exchange Commission, may be
obtained without charge upon request to John F. Hoffen, Jr., corporate
secretary at the corporate headquarters.
Stock Exchange Listing
Common Stock: USF&G Corporation's common stock (ticker: FG) is listed on the
New York Stock Exchange. The common stock appears in the NYSE Composite
Listing as USFG. The common stock is also listed on the Pacific Stock
Exchange, the London Stock Exchange, and the Stock Exchanges of Basle,
Geneva, and Zurich, Switzerland.
Preferred Stock: USF&G Corporation's $4.10 Series A Convertible Exchangeable
Preferred Stock (ticker: FGpA) is listed on the New York Stock Exchange. The
preferred stock appears in the NYSE Composite Listing as USFGpf, and is also
listed on the Pacific Stock Exchange.
Transfer Agent/Registrar
First Chicago Trust Company of New York is transfer agent, registrar, and
dividend disbursing agent for USF&G Corporation's common and preferred stock.
Inquiries regarding stock transfer requirements, dividend payments, the
Dividend Reinvestment and Stock Purchase Plan, or address changes should be
addressed to:
First Chicago Trust Company of New York
P.O. Box 2500
Jersey City, NJ 07303-2500
Attention: Shareholders' Relations Department
1-800-446-2617
Stock and Dividend Information
The following tabulation presents 1994 and 1993 data on the sale prices of
USF&G Corporation's common stock on the New York Stock Exchange Composite
Listing by quarter, and the dividends paid per share of common stock. At
February 24, 1995, there were 33,689 shareholders of record and the closing
price was $14 7/8.
Sale Price
High Low Dividends Paid
1994
First quarter $16 1/8 $ 13 $.05
Second quarter 14 11 11/16 .05
Third quarter 14 12 1/8 .05
Fourth quarter 14 5/8 12 5/8 .05
1993
First quarter $17 5/8 $ 11 1/8 $.05
Second quarter 19 5/8 15 3/4 .05
Third quarter 19 5/8 13 7/8 .05
Fourth quarter 15 1/4 12 3/8 .05
Dividend Reinvestment and Stock Purchase Plan
The plan provides shareholders with a convenient way to invest cash dividends
and to make optional cash investments in additional shares of USF&G
Corporation's common stock without payment of any charges for brokerage
commissions or fees. First Chicago Trust Company of New York administers the
plan and additional information may be obtained from them by written request.
For Additional Information
Any investors and analysts requesting additional information regarding USF&G
Corporation may dial our new toll-free number, 1-800-335-USFG (8734) or call
directly:
Jennifer Macke
Investor Relations Department
(410) 547-3939
Independent Auditors
Ernst & Young LLP
One North Charles Street
Baltimore, Maryland 21201