NU Online News Service, Oct. 22, 2004, 11:10 a.m. EDT
Cincinnati Life Insurance Company reports a decline in net income of 35% in the 3rd quarter.[@@]
The company had net income of $5 million for the quarter, down from $8 million for the comparable 2003 period.
Cincinnati Life president David H. Popplewell attributed the drop to losses in the company’s investment portfolio due to its sale of airline bonds and a decline in the fair value of derivatives embedded in convertible securities.
The company reported an increase in earned premiums of 7.2% to $25 million in the quarter. Income before realized investment gains and losses rose 3.2% over the 3rd quarter of 2003.
During the quarter, the company strengthened its worksite marketing line by adding a disability income product, Popplewell announced.
“Worksite insurance products provide our property-casualty agency force with an excellent cross-selling opportunity for their small commercial accounts,” he said.
The company is a unit of Cincinnati Financial Corporation, which reported 3rd quarter net income of $90 million, down from $104 million in the same period last year. Total revenues for the parent company advanced by $43 million, or 5%, from the year-earlier period, to $879 million.