Cotton States Life Insurance Company Releases First-Quarter Earnings

Apr 24, 2001, 01:00 ET from Cotton States Life Insurance Company

    ATLANTA, April 24 /PRNewswire Interactive News Release/ --
 Cotton States Life Insurance Company (Nasdaq:   CSLI) reports net earnings for
 the first quarter of $1.0 million or $.16 per diluted share, compared to $1.5
 million or $.24 per diluted share in 2000.  Net earnings were down because of
 increased mortality the Company experienced in its traditional lines during
 the quarter.  Total premiums during the first quarter were
 $7.0 million, up 15 percent compared to the same period last year.  In
 addition, the Company posted a 36 percent jump in premium in its guaranteed
 issue/simplified issue whole life products, as well as a 13 percent increase
 in its traditional business premium.
     According to the Company's president, chairman and chief executive
 officer, J. Ridley Howard, "Our first-quarter performance illustrates that
 we're continuing to improve.  However, I am disappointed with the increased
 mortality we experienced in our traditional business and its effect on the
 Company's overall performance.  Because we budget for mortality evenly over
 the course of the year, quarterly fluctuations, even when they remain in the
 normal range, can affect short-term earnings.  With $5 billion of in-force
 life insurance, a one percent variance in our projected mortality, which we
 experienced this quarter, will occur periodically."
     Cotton States Life Insurance Company offsets the effects of high mortality
 with stop loss reinsurance, which is applied on an annual basis.
     Howard continues, "While this quarter may be disappointing in the short
 term, I am still confident that Cotton States' long-term performance will be
 strong.  The fact that we have posted nine consecutive years of record
 earnings points to our strong fundamentals and our ability to stay on course."
 In other business, the Company also announced today that the Board of
 Directors declared a quarterly cash dividend of $.04 per share, payable on
 July 2, 2001 to stockholders of record on June 11, 2001.
     Cotton States Insurance is a group of companies that has been providing
 quality insurance products to customers in the Southeast since 1941, with
 products for auto, home and life.  The Group's product portfolio is
 complimented with specialty products that are marketed through its two
 brokerage operations.  The Cotton States Insurance Group includes Cotton
 States Mutual Insurance Company, Shield Insurance Company and Cotton States
 Life Insurance Company, including its two subsidiaries Cotton States Marketing
 Resources and CSI Brokerage Services, Inc. Cotton States Life Insurance
 Company is traded on The NASDAQ National Market under the symbol CSLI.
     For additional information, contact Cotton States Insurance Company at
 (770) 391-8786 or visit www.cottonstatesinsurance.com .
 
 
                      COTTON STATES LIFE INSURANCE COMPANY
                   Unaudited Consolidated Summary of Earnings
 
                                                      Three months ended
                                                           March 31,
                                                    2001              2000
 
     Revenue:
             Premiums                            $7,031,353         6,125,550
             Investment income                    2,548,392         2,401,626
             Realized investment gains                8,985           116,976
             Brokerage commissions                  903,162           907,201
                    Total revenue                10,491,892         9,551,353
 
 
 
     Benefits and expenses:
             Benefits and claims                  4,717,771         3,117,864
             Interest credited                    1,216,844         1,267,821
             Amortization of policy
              acquisition costs                     927,794           852,764
             Operating expenses                   2,032,039         1,888,623
                    Total benefits and
                     expense                      8,894,448         7,127,072
 
 
             Income before income tax
              expense                             1,597,444         2,424,281
 
             Income tax expense                     576,390           900,666
 
 
     Net income                                  $1,021,054         1,523,615
 
      Basic income per share of common
       stock
                  Operating income                    $0.16              0.23
                  Net Income                          $0.16              0.24
 
     Diluted income per share of common
      stock
                  Operating income                    $0.16              0.23
                  Net income                          $0.16              0.24
 
     Weighted average number of shares
             used in computing income per
              share
 
                  Basic                           6,345,428         6,346,448
                  Diluted                         6,519,876         6,467,157
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X63761437
 
 

SOURCE Cotton States Life Insurance Company
    ATLANTA, April 24 /PRNewswire Interactive News Release/ --
 Cotton States Life Insurance Company (Nasdaq:   CSLI) reports net earnings for
 the first quarter of $1.0 million or $.16 per diluted share, compared to $1.5
 million or $.24 per diluted share in 2000.  Net earnings were down because of
 increased mortality the Company experienced in its traditional lines during
 the quarter.  Total premiums during the first quarter were
 $7.0 million, up 15 percent compared to the same period last year.  In
 addition, the Company posted a 36 percent jump in premium in its guaranteed
 issue/simplified issue whole life products, as well as a 13 percent increase
 in its traditional business premium.
     According to the Company's president, chairman and chief executive
 officer, J. Ridley Howard, "Our first-quarter performance illustrates that
 we're continuing to improve.  However, I am disappointed with the increased
 mortality we experienced in our traditional business and its effect on the
 Company's overall performance.  Because we budget for mortality evenly over
 the course of the year, quarterly fluctuations, even when they remain in the
 normal range, can affect short-term earnings.  With $5 billion of in-force
 life insurance, a one percent variance in our projected mortality, which we
 experienced this quarter, will occur periodically."
     Cotton States Life Insurance Company offsets the effects of high mortality
 with stop loss reinsurance, which is applied on an annual basis.
     Howard continues, "While this quarter may be disappointing in the short
 term, I am still confident that Cotton States' long-term performance will be
 strong.  The fact that we have posted nine consecutive years of record
 earnings points to our strong fundamentals and our ability to stay on course."
 In other business, the Company also announced today that the Board of
 Directors declared a quarterly cash dividend of $.04 per share, payable on
 July 2, 2001 to stockholders of record on June 11, 2001.
     Cotton States Insurance is a group of companies that has been providing
 quality insurance products to customers in the Southeast since 1941, with
 products for auto, home and life.  The Group's product portfolio is
 complimented with specialty products that are marketed through its two
 brokerage operations.  The Cotton States Insurance Group includes Cotton
 States Mutual Insurance Company, Shield Insurance Company and Cotton States
 Life Insurance Company, including its two subsidiaries Cotton States Marketing
 Resources and CSI Brokerage Services, Inc. Cotton States Life Insurance
 Company is traded on The NASDAQ National Market under the symbol CSLI.
     For additional information, contact Cotton States Insurance Company at
 (770) 391-8786 or visit www.cottonstatesinsurance.com .
 
 
                      COTTON STATES LIFE INSURANCE COMPANY
                   Unaudited Consolidated Summary of Earnings
 
                                                      Three months ended
                                                           March 31,
                                                    2001              2000
 
     Revenue:
             Premiums                            $7,031,353         6,125,550
             Investment income                    2,548,392         2,401,626
             Realized investment gains                8,985           116,976
             Brokerage commissions                  903,162           907,201
                    Total revenue                10,491,892         9,551,353
 
 
 
     Benefits and expenses:
             Benefits and claims                  4,717,771         3,117,864
             Interest credited                    1,216,844         1,267,821
             Amortization of policy
              acquisition costs                     927,794           852,764
             Operating expenses                   2,032,039         1,888,623
                    Total benefits and
                     expense                      8,894,448         7,127,072
 
 
             Income before income tax
              expense                             1,597,444         2,424,281
 
             Income tax expense                     576,390           900,666
 
 
     Net income                                  $1,021,054         1,523,615
 
      Basic income per share of common
       stock
                  Operating income                    $0.16              0.23
                  Net Income                          $0.16              0.24
 
     Diluted income per share of common
      stock
                  Operating income                    $0.16              0.23
                  Net income                          $0.16              0.24
 
     Weighted average number of shares
             used in computing income per
              share
 
                  Basic                           6,345,428         6,346,448
                  Diluted                         6,519,876         6,467,157
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X63761437
 
 SOURCE  Cotton States Life Insurance Company

RELATED LINKS

http://www.cottonstatesinsurance.com