NU Online News Service, Oct. 23, 2003, 10:02 a.m. EDT – Torchmark Corp., Birmingham, Ala., says investment losses and amortization of deferred acquisition costs cut its third quarter earnings 8.1%.
The life and health insurer is reporting $108 million in net income for the latest quarter on $724 million in revenue, compared with $117 million in net income on $716 million in revenue for the third quarter of 2002.
Revenue increased more than benefits expenses, but Torchmark recognized $6.8 million in investment losses during the quarter. The company recognized $17 million in investment gains during the comparable quarter in 2002.
DAC amortization costs increased 9%, to $82 million.
Health sales grew 24%, to $59 million, thanks to sales of supplemental health products other than Medicare supplement insurance.
Life sales rose 12%, to $96 million, in part because of gains in sales of policies that insure the lives of children.