Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, February 16, 1991 TAG: 9102160223
SECTION: BUSINESS PAGE: A8 EDITION: METRO
SOURCE: GEORGE KEGLEY BUSINESS EDITOR
DATELINE: LENGTH: Medium
Stephenson reported a record pre-tax gain from operations of $7.3 million, more than triple the $2.2 million in the preceding year. The previous high was $4.4 million in 1987.
A reduction of 35 jobs saved $1.2 million and the company sold its fleet of cars and made other reductions while raising individual insurance sales 29 percent and group sales, 42 percent, he said.
As a result of the higher gains, Stephenson told the annual policyholders meeting that the Roanoke company will increase dividends by 23 percent on old policies this year.
A strong showing in 1990 has carried over into 1991, he said, but the company faces an escalating war "and the black hole of the recession gets wider and deeper every day."
Stephenson said the biggest obstacle is the new tax on insurance companies' expense of selling, expected to cost Shenandoah Life $2 million this year. "The better we perform, the stiffer the tax bite will be," he said.
Insurance companies are trying to get Congress to change that law. If not, he said, the tax increase probably will lead to higher premiums.
Stephenson reported these increases: premium income of $110 million, up 8.1 percent; asset base of $455 million, up 8.6 percent; direct life insurance in force, $8.3 billion, up 11 percent; policyholder surplus of $34 million, up 6.9 percent, and investment income of $41.2 million, up 13 percent.
Also, Warner Dalhouse, chairman of Dominion Bankshares Corp., was elected to the company board, succeeding Gordon Willis, chairman of Rockydale Quarries, who has retired as a director. Four directors re-elected are William R. Battle and Nicholas Taubman, Roanoke; Elizabeth Helm, Winchester, and Gordon Davies, Richmond.
by CNB