FIRST COLONY CORPORATION
Corporate Communications
700 Main Street
P. O. Box 1280
Lynchburg, Virginia 24505
FOR IMMEDIATE RELEASE
FIRST COLONY REPORTS RECORD 1ST QUARTER RESULTS
LYNCHBURG, VA., May 7, 1996 - First Colony Corporation
(NYSE:FCL) reported record operating earnings and record life
insurance sales for the first quarter ended March 31, 1996.
After-tax operating income was a record $0.64 per share
or $32.4 million, up 25% from 1995's first quarter of $0.51 per
share or $25.7 million. After-tax results for the quarter benefited
from the growth of life and annuity business in force and relatively
better life insurance and annuity mortality.
Pre-tax operating income was $50.2 million for the quarter,
up 27% from $39.6 million a year ago.
Net income, including $6.5 million of realized investment
gains and related amortization, was $38.9 million, or $0.77 per share
for the quarter, up from $32.9 million, or $0.65 per share from a year ago.
Realized investment gains in the first quarter of 1995 were $7.2 million.
Annual premium life sales reached an all-time high of $35.8
million for the quarter up 6% over a year ago. By face amount,
life insurance sales were $12.1 billion for the quarter, up 13%.
Single premium immediate annuity (SPIAs) sales of $143.8
million for the quarter, were up 6%. This increase reflects
growth in the settlement annuity market.
Sales of accumulation products, which include single premium
deferred annuities and single premium life, were $12.0 million
for the quarter, down 82% from a year ago reflecting market
conditions which were not as attractive for sales at acceptable
profit and risk levels.
Total revenues for the quarter of $411.7 million were up 9%
from $376.6 million a year ago. The increase is due principally
to higher premium revenues and investment income.
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At March 31, 1996, total assets, excluding the effect of
FASB 115, increased to $10.6 billion, up 2% from $10.4 billion at
year-end 1995 and up 11% from March 31, 1995. This increase is due
principally to asset growth from new sales. Including the effect of
FASB 115, assets of $10.7 billion, were level with year-end 1995, reflecting
the effect of the mark-to-market requirements of FASB 115 in the rising
interest rate environment of the first quarter.
Shareholders' equity, excluding the effect of FASB 115, was
$1.3 billion, or $24.71 per share, up 2% from $24.22 at year-end 1995
and up 11% from March 31, 1995. Including the effect of FASB 115,
shareholders' equity was $1.4 billion, or $25.81 per share, down 9% from
$28.44 per share at year-end 1995.
Life insurance in force reached $185 billion, up 21% from a
year earlier.
Bruce C. Gottwald, Jr., chairman and chief executive officer
of First Colony Corporation, said, "We are pleased with the first
quarter's record operating earnings continuing last year's return
to double digit growth, and the strong increase in life insurance
and immediate annuity sales in today's competitive market."
First Colony Corporation is a Richmond, Virginia-based
holding company which owns First Colony Life Insurance Company
and its wholly owned subsidiary, American Mayflower Life
Insurance Company of New York.
For information contact:
Media Relations: Investor Relations:
Frank G. Land April A. Keesee
(804) 948-5293 (804) 948-5709
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FIRST COLONY CORPORATION
Financial Highlights
(000's except per share data)
Three Months Ended March 31, 1996 1995 %Change
Income:
Pre-tax operating income (a) $ 50,159 $39,566 27%
After-tax operating income 32,431 25,706 26
Net realized investment gains (losses) (b) 6,492 7,229 (10)
Net income 38,923 32,935 18
Per Share:
After-tax operating income (c) $0.64 $0.51 25%
Net realized investment gains (losses) 0.13 0.14 (7)
Net income (c) 0.77 0.65 18
Sales and Other Selected Data
Life insurance sales by face amount $ 12,135,344 $10,716,834 13%
Premium sales:
Life insurance 35,788 33,714 6
Single premium immediate annuities 143,817 135,092 6
Accumulation products 11,959 66,045 (82)
Other Data: 3/31/96 12/31/95 %Change
Assets (including FASB 115) $10,717,983 $10,720,609 0%
Assets (excluding FASB 115) 10,634,607 $10,400,166 2
Shareholders' equity per common share
(including FASB 115) 25.81 28.44 (9)
Shareholders' equity per common share
(excluding FASB 115) 24.71 24.22 2
Life insurance in force (in billions) 185.2 176.9 5
Average shares outstanding 49,372 49,377
(a) Excludes pretax realized investment gains of $10.3 million for the quarter
ended March 31, 1996, versus $11.5 million in 1995; and the effect of
related amortization of $0.3 million for both periods.
(b) After income taxes, net of the effect of related amortization.
(c) Reflects dividends on preferred stock of $888, or $0.02 per share for the
quarter ended March 31, 1996, versus $749, or $0.02 per share a year ago.