NU Online News Service, Nov. 4, 2004, 3:31 p.m. EST
A major acquisition is helping third-quarter results at Scottish Re Group Inc., Hamilton, Bermuda.[@@]
The life insurer is reporting $13 million in net income for the latest quarter on $198 million in revenue, up from $1.6 million in net income on $135 million in revenue for the third quarter of 2003.
Scottish Re paid $151 million in December 2003 to acquire 95% of the stock of ERC Life Reinsurance Corp. from an affiliate of General Electric Company, Fairfield, Conn.
“The ERC acquisition contributed net operating earnings in line with our expectations for that business,” Scottish Re Chairman Michael French says in a statement about the company’s results.
Scottish Re ended the third quarter reinsuring $307 billion in life insurance for 7.5 million insureds. The company protected an average of $41,000 in benefits per insured.
In other earning news:
- Health Net Inc., Los Angeles, is reporting $72 million in net income for the third quarter on $2.9 billion in revenue, up from a $2.2 million net loss on $2.8 billion in revenue for the third quarter of 2003.
The managed care company ended the quarter providing or administering health coverage for 3.7 million commercial, Medicare and Medicaid health plan members, compared with 3.9 million members a year earlier.
Membership in Health Net’s TriCare operation, which administers health coverage for military personnel, dependents and retirees, increased to 3.6 million, from 1.5 million, as a result of a restructuring of the program.
Commercial membership dropped to 2.7 million, from 2.8 million, because Health Net is trying to focus more on charging prices that are high enough to cover claims costs, according to Buddy Piszel, the company’s chief financial officer.
“This disciplined pricing has resulted in enrollment losses in California that are greater than we planned,” Piszel says. “However, bolstering margin even at the expense of enrollment losses is the right thing to do.”