NU Online News Service, Oct. 30, 2003, 6:08 p.m. EST – John Hancock Financial Inc., Boston, says disciplined pricing and the improving credit climate helped it increase its net income 21% in the third quarter.
The company is reporting $191 million in net income for the quarter on $2.5 billion in revenue, up from $158 million in net income on $2.2 billion in revenue for the third quarter of 2002.
Because borrowers are doing a better job of making their payments, Hancock has cut its estimate of total 2003 credit losses to a range of $625 million to $650 million. Originally, Hancock feared losses might rise as high as $750 million.
At the annuity operations, lingering low interest rates hurt new sales. Sales dropped to $378 million, from $618 million, for fixed annuities and to $95 million, from $267 million, for variable annuities.