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Hancock Reports Higher 1st Quarter Net Income

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NU Online News Service, May 3, 1:08 p.m. – John Hancock Financial Services Inc., Boston, is reporting $147 million in net income for the first quarter on $2.1 billion in revenue, down from $168 million in net income on $2.4 billion in revenue for the first quarter of 2001.

The latest results including $53 million in investment losses.

Operating income, which excludes the investment losses and other gains and charges, increased to $203 million, from $191 million.

Hancock sells annuities, life insurance, guaranteed investment products and long-term care insurance.

? Annuities: Sales of variable annuities fell 10%, to $158 million, but sales of fixed annuities increased 142%, to $761 million.

? Life: Sales of ordinary group and individual life policies increased 25%, to $50 million, while sales of corporate-owned and bank-owned life policies fell 24%, to $32 million.

? Guaranteed investments: Sales of guaranteed investment contracts and funding agreements rose 28%, to $1.5 billion, but group annuity sales were down.

? Long-term care insurance: Individual long-term care insurance sales increased 7%, to $27 million. Thanks to the signing of several big, new cases, group LTC sales leaped to $8.2 million, from $2.8 million.