INSURER PINS LOSS ON RISE IN CLAIMS

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, February 20, 1993                   TAG: 9302200138
SECTION: BUSINESS                    PAGE: A-7   EDITION: METRO 
SOURCE: GEORGE KEGLEY STAFF WRITER
DATELINE:                                 LENGTH: Medium
INSURER PINS LOSS ON RISE IN CLAIMS
Shenandoah Life Insurance Co. on Friday reported it lost $1.7 million last year, compared to net income of $7.3 million in 1991.
"The loss was the result of a $2.7 million increase in individual claims, the largest we've ever had," said Joseph E. Stephenson, the company's president.
The Roanoke-based firm had a gain of $2.1 million, down 74 percent from $8.4 million, in operational revenues before taxes. The declines were blamed on federal taxes, large death claims and a volatile investment market.
Federal taxes of more than $3 million accounted for half the operations decrease, Stephenson told policyholders at their annual meeting Friday morning.
Although individual life insurance sales decreased, total premiums collected from all individual policies increased by 16 percent to $85.8 million, the company said. Group insurance sales were down less than the national average.
Annuities, which Stephenson termed "our shining light," had an increase of 44 percent to $41.7 million in new premiums.
The company's assets rose 11.9 percent to $573.9 million at the end of the year. The surplus account, the reserve protecting policyholders from market fluctuations or other contingencies, was raised 9.4 percent to a record $44.7 million.
Stephenson said the company plans "to operate in a low-yield, high-quality environment." For 1993, he sees "economic strength and a much better business climate."
The board elected Stephenson chairman to succeed William R. Battle, retired president of the company. Stephenson has been president since 1989 and he was named to the board while executive vice president in 1988.
Re-elected as directors to three-year terms were Stephenson; Dominion Bankshares Corp. Chairman Warner Dalhouse; and Clifford Cutchins, retired chairman of the former Sovran Financial Corp., which now is part of NationsBank Corp.

by Archana Subramaniam by CNB