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Torchmark Reports 8.1% Drop In Net Income

By Staff Writer

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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.