A Refocused Transamerica Posts Record Profits for ’86

Transamerica reported a 24% fourth-quarter profit gain and record earnings for 1986, a year in which it undertook a major restructuring to focus on its core insurance and financial services operations.

Net income for the quarter ended Dec. 31 was $52.5 million, up from $42.3 million in the same period of 1985. Fourth-quarter revenue totaled $1.55 billion, compared to $1.36 billion in 1985.

For all of 1986, net income reached a record $267.5 million, up 83% from $145.8 million in 1985. Revenue totaled $6.08 billion, up from $5.59 billion in 1985.

Chairman and Chief Executive James R. Harvey attributed the strong earnings in part to record performances in consumer lending, title insurance and tax-service operations, as well as excellent results from life insurance and insurance brokerage activities.

“During the year, we successfully carried out our plan to divest our travel and manufacturing businesses in order to concentrate on our core insurance and financial services operations,” Harvey said.

He said Transamerica had an after-tax gain of $50 million from its $205-million sale of its Budget Rent-A-Car subsidiary. It also completed the spinoff of its manufacturing unit, Transamerica Delaval, to shareholders and is completing the disposition of Oakland-based Transamerica Airlines’ assets and expects to report substantial gains on those sales, he said.