Chicago-based Unitrin Inc. reported net income from operations was $7.7 million ($0.11 per common share) for the three months ended June 30, 2002, compared to a net loss from operations of $7.2 million ($0.11 per common share) for the same period in 2001.
The company said net income from operations for the second quarter of 2002 increased due primarily to improved results in Unitrin’s Multi Lines and Specialty Lines Insurance segments and higher dividend income from Corporate Investments. However, those gains were partially offset by lower results in the Life and Health Insurance segment.
For the three months ended June 30, total net income was $4.4 million ($0.06 per common share), compared to total net income of $356.3 million ($5.28 per common share) for the same period in 2001. Total net income for the three months ended June 30, decreased due primarily to lower net income from sales of investments, partially offset by higher net income from operations. Total net income for the second quarter of 2001 included an after-tax gain of $362.4 million resulting from the acquisition of the company’s former investee, Litton Industries Inc., by Northrop Grumman Corporation.
Total net income for the second quarter of 2001 included net income of $2.7 million from Unitrin’s former investee, Curtiss-Wright Corporation. In November 2001, Unitrin spun off its investment in Curtiss-Wright in a tax-free distribution to Unitrin’s shareholders.
On June 28, Unitrin closed its previously announced acquisition of the personal lines property and casualty insurance business of the Kemper Insurance Companies. The acquisition did not have a material impact on Unitrin’s results for the three months ended June 30.
Effective Jan. 1, 2002, Unitrin adopted Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible Assets” and, accordingly, no longer amortizes goodwill into income. Total net income for the six and three months ended June 30, 2001 included after-tax goodwill amortization of $3.7 million and $1.8 million, respectively.
Topics Profit Loss
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