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

DATE: SATURDAY, February 19, 1994                   TAG: 9402190048
SECTION: BUSINESS                    PAGE: A5   EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

SHENENDOAH LIFE TURNS IT AROUND OPERATIONAL GAIN TOPS 200 PERCENT

Despite a year of internal turmoil that led to appointment of a new chief executive, Shenandoah Life Insurance Co. posted a profit of $4.2 million in 1993, compared with a loss of $1.7 million in 1992.

Robert Clark, president and chief executive officer since January, reported the positive results Friday at the annual policyholders' meeting.

The company's operational gain before federal income tax was $6.8 million, more than a 200 percent increase over 1992 results.

The only disappointment reported by Clark was a 9.2 percent decrease to $117 million in total premiums paid to the company, primarily because first-year premium production fell below goal. Renewal premiums, however, increased by 5.7 percent to $71.6 million, Clark reported to the meeting at the company's headquarters in Roanoke.

The annual report distributed at the meeting showed a drop in premium income from $131 million to $122 million and a decline in insurance sales from $2 billion to $1.4 billion.

Clark attributed the premium situation to external and internal challenges, including criticism from independent sales agents that forced the resignation of Clark's predecessor, Joseph Stephenson, last summer.

"Sales of individual life insurance for the industry as a whole were flat," the company said in its annual report. "The soft market is due in part to the rather slow economic recovery, particularly the slow growth in new jobs, and to uncertainity in the employee benefits market because of the [Clinton] administration's proposed health care plan."

Shenandoah Life's assets increased 91 percent in 1993 to $626 million. Over the past five years, assets have increased almost 50 percent.

Net investment income rose 6.5 percent to $46.7 million. Because of the decline in interest rates in 1993, yield on invested assets fell from 8.6 percent to 8.3 percent, though it exceeded the industry average yield of 8.2 percent, Clark said.

As a result of the gain from operations, unassigned surplus increased to $41.7 million, up 12.8 percent from 1992 results. Unassigned surplus is a foundation of funds that can support further growth of the company while providing an added measure of safety for policyholders.

Re-elected for three-year terms as directors were were William Battle of Roanoke and former President Gordon Davies of Richmond, director of the Council of Higher Education; Elizabeth Helm of Winchester, president of Glaize Development Inc.; and Nicholas Taubman of Roanoke, chairman of Advance Stores Co.

Re-elected for two-year terms were Lt. Gov. Don Beyer and Joseph Vipperman of Roanoke, president of Appalachian Power Co.

Clark was chosen for a one-year term.

by CNB