This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Presidential Life Corporation Announces Third Quarter 2012 Results

Stocks in this article: PLFE

The Company recorded income tax expenses of $2.8 million and $1.5 million in the third quarters of 2012 and 2011, respectively, a period-over-period increase of $1.3 million or 86.7%. Income tax expense was $6.3 million and $12.7 million for the nine months ended September 30, 2012 and 2011, respectively, a period-over-period decrease of $6.4 million or 50.4%. The decrease in income tax expense for 2012 relative to 2011 results mainly from lower pre-tax income. The effective tax rate was 34.1% and 34.5% for the nine months ended September 30, 2012 and 2011, respectively, a decline of 0.4%.

Cautionary statement regarding forward-looking statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, quotations from management, statements about our future plans and business strategy, and expected or anticipated future events or performance.

These forward-looking statements involve risks and uncertainties that are discussed in our filings with the Securities and Exchange Commission, including economic, competitive, legal and other factors. Accordingly, there is no assurance that our plans, strategy and expectations will be realized. Actual future events and results may differ materially from those expressed or implied in forward-looking statements.

About Presidential Life

Presidential Life Corporation, through its wholly owned subsidiary Presidential Life Insurance Company, is a provider of fixed deferred and immediate annuities, life insurance and accident & health insurance products to financial service professionals and their clients. Headquartered in Nyack, New York, the Company was founded in 1969 and markets its products in 50 states and the District of Columbia. For more information, visit our website www.presidentiallife.com.

         
PRESIDENTIAL LIFE CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands)
September 30,       December 31,
    2012 2011
ASSETS: (Unaudited)
Investments:
Fixed maturities:
Available for sale at market (Amortized cost
of $ 3,162,017 and $ 3,206,884 respectively) $ 3,584,243 $ 3,520,755
Common stocks (Cost of $ 748 and
$ 748, respectively) 1,468 1,302
Derivative instruments, at fair value 1,651 3,358
Real estate 415 415
Policy loans 19,565 18,442
Short-term investments 126,723 61,233
Limited Partnerships   171,729   166,923
Total Investments $ 3,905,794 $ 3,772,428
 
Cash and cash equivalents 15,802 47,110
Accrued investment income 45,489 47,289
Deferred policy acquisition costs 37,732 41,746
Furniture and equipment, net 2,385 1,065
Amounts due from reinsurers 29,962 19,116
Amounts due from investment transactions 228 23,880
Federal income taxes recoverable 15,477 -
Other assets   2,321   1,649
TOTAL ASSETS $ 4,055,190 $ 3,954,283
 
LIABILITIES AND SHAREHOLDERS' EQUITY:
Liabilities:
Policy Liabilities:
Policyholders' account balances $ 2,286,808 $ 2,323,364
Annuity 624,608 634,397
Life and accident and health 92,357 83,855
Other policy liabilities   17,528   20,633
Total Policy Liabilities $ 3,021,301 $ 3,062,249
Deposits on policies to be issued 659 490
General expenses and taxes accrued 4,002 2,521
Federal income taxes payable - 1,411
Deferred federal income taxes, net 136,036 82,355
Amounts due for investment transactions 6,173 268
Other liabilities   18,550   17,045
Total Liabilities $ 3,186,721 $ 3,166,339
 
Commitments and Contingencies
 
Shareholders’ Equity:
Capital stock ($.01 par value; authorized
100,000,000 shares outstanding,
29,591,739 and 29,574,697 shares, respectively) $ 296 $ 296
Additional paid in capital 7,532 7,408
Accumulated other comprehensive income 266,642 192,815
Retained earnings   593,999   587,425
Total Shareholders’ Equity   868,469   787,944
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 4,055,190 $ 3,954,283
 
 
PRESIDENTIAL LIFE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(In thousands, except share data)
                     

THREE MONTHS ENDED

September 30,

(Unaudited)

NINE MONTHS ENDED

September 30,

(Unaudited)

REVENUES: 2012 2011 2012 2011
Insurance Revenues:
Premiums $ 4,615 $ 4,572 $ 12,896 $ 13,533
Annuity considerations 5,661 1,586 14,203 5,983
Universal life and investment type policy fee income 828 849 2,477 2,647
Equity in earnings (losses) on limited partnerships 182 103 1,312 2,067
Net investment income 45,754 48,212 138,981 146,555
Net realized investment gains (losses):
Total Other-than-temporary impairment ("OTTI") losses $ (586) $ (3,971) $ (5,660) $ (10,687)
OTTI losses recognized in other comprehensive income 235 836 235 3,924
Net OTTI losses recognized in earnings $ (351) $ (3,135) $ (5,425) $ (6,763)
Net realized capital gains, excluding OTTI losses 4,313 2,215 12,229 27,626
Other income   1,404   257   2,837   2,201
TOTAL REVENUES $ 62,406 $ 54,659 $ 179,510 $ 193,849
 
BENEFITS AND EXPENSES:
Death and other life insurance benefits $ 4,416 $ 4,519 $ 13,113 $ 13,435
Annuity benefits 19,810 20,426 59,651 62,284
Interest credited to policyholders' account balances 24,348 25,428 73,514 76,454
Other interest and other charges 434 243 1,112 950
Decrease in liability for future policy benefits (3,522) (6,836) (12,380) (21,293)
Commissions to agents, net 1,289 700 3,673 3,064
General expenses and taxes 6,588 4,460 20,109 17,583
Change in deferred policy acquisition costs   1,105   1,295   2,336   4,457
TOTAL BENEFITS AND EXPENSES $ 54,468 $ 50,235 $ 161,128 $ 156,934
 
Income before income taxes $ 7,938 $ 4,424 $ 18,382 $ 36,915
 
Provision (benefit) for income taxes:
Current $ (13,273) $ 16,051 $ (7,667) $ 18,341
Deferred 16,023 (14,525) 13,927 (5,605)
$ 2,750 $ 1,526 $ 6,260 $ 12,736
 
NET INCOME $ 5,188 $ 2,898 $ 12,122 $ 24,179
 
OTHER COMPREHENSIVE INCOME (after tax)

Net unrealized investment gains from available for sale

securities, net of income tax expense of $39,753 and $52,613,

respectively.

29,000 63,203 73,827 97,711
TOTAL OTHER COMPREHENSIVE INCOME $ 29,000 $ 63,203 $ 73,827 $ 97,711
TOTAL COMPREHENSIVE INCOME $ 34,188 $ 66,101 $ 85,949 $ 121,890
 
Earnings per common share, basic $ 0.18 $ 0.10 $ 0.41 $ 0.82
Earnings per common share, diluted $ 0.18 $ 0.10 $ 0.41 $ 0.82
 

Weighted average number of shares outstanding during

the period, basic

  29,591,739   29,574,697   29,588,007   29,574,697

Weighted average number of shares outstanding during

the period, diluted

  29,609,653   29,574,697   29,597,614   29,574,697
 

1 Defined as the yield on invested assets over the cost of money on annuity liabilities. Yield is inclusive of realized capital gains/(losses), other-than-temporary-impairments and equity in earnings/(losses) on limited partnerships. 2 In accordance with Generally Accepted Accounting Principles (“GAAP”), current quarter sales of deferred annuities and immediate annuities without life contingencies ($8.2 million) are not reported as insurance revenues, but rather as additions to policyholder account balances. In addition, sales of immediate annuities with life contingencies, which are reported as insurance revenues under GAAP, totaled $5.6 million. 3 Risk-Based Capital (“RBC”) refers to the ratio of adjusted statutory surplus divided by Company Action Level capital that triggers regulatory involvement, as those terms are defined by the National Association of Insurance Commissioners (“NAIC”).



5 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs