NU Online News Service, Aug. 2, 7:58 p.m. – John Hancock Financial Services Inc., Boston, is reporting $181 million in net income for the second quarter on $1.8 billion in revenue, down from $232 million in net income on $1.9 billion in revenue for the second quarter of 2000.
After-tax operating income, which excludes $4 million in restructuring charges and $14 million in losses on investments sold during the quarter, increased 8.5%, to $199 million.
The weak stock market and lower interest rates hurt results for some investment products and services, but corporate-owned life insurance, variable life insurance, fixed annuities and long-term care insurance sold well, Hancock says.
The Hancock unit that sells guaranteed investment contracts, group annuities and funding agreements generated $53 million in net income for the second quarter on $517 million in revenue, compared with $50 million in net income on $721 million in revenue for the second quarter of 2000.
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Although revenue was down because of the sale of some operations once included in the unit, customers deposited $246 million more assets with the unit than they withdrew.
The Hancock unit that sells mutual funds and individual annuities earned $24 million in net income for the second quarter on $295 million in revenue, down from $32 million in net income on $299 million in revenue.
Consumers deposited $148 million more in fixed annuities than they took out, but they took $40 million more out of variable annuities than they put in.
The mutual funds lost $171 million more to redemptions than they took in through deposits and reinvestments.