NU Online News Service, Jan. 21, 12:41 p.m. – Citigroup Inc., New York, is reporting $2.4 billion in net income for the fourth quarter of 2002 on $23 billion in revenue, compared with $3.9 billion in net income on $23 billion in revenue for the fourth quarter of 2001.

The life and annuity operations generated $194 million in core income on $1.1 billion in operating revenue, compared with $200 million in core income on $1.2 billion in operating revenue for the comparable quarter in 2001.

Citigroup excludes interest expenses and investment results from its operating revenue and core income figures.

Citigroup had better luck with life insurance in the fourth quarter than with annuities. Net written premiums and deposits from individual life insurance increased 5% from the fourth quarter of 2001, to $261 million, but premiums and deposits from annuities fell 31%, to $1.1 billion.

Some companies reported strong sales of fixed annuities in 2002 despite slumps in sales of variable annuities. But Citigroup says its premiums and deposits from fixed annuities fell 34%, to $431 million.

Premiums and deposits from variable annuities fell 29% from the fourth quarter of 2001, to $626 million.