Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Annuities > Fixed Annuities

Fied Annuity Sales Plateau At Jefferson-Pilot

Your article was successfully shared with the contacts you provided.

Low interest rates squeezed earnings at Jefferson-Pilot Corp. during the second quarter.[@@]

Jefferson-Pilot, Greensboro, N.C., is reporting $137 million in net income for the latest quarter on $1.06 billion in revenue, compared with $142 million in net income on $1.05 billion in revenue for the second quarter of 2004.

Although annualized premiums from life insurance sales increased to $64 million, from $54 million, and annualized group life, group disability and group dental sales increased to $53 million, from $48 million, fixed annuity sales edged down to $290 million, from $291 million.

Jefferson-Pilot brought in $300 million in additional sales by entering the market for funding agreements. Funding agreements are fixed-rate notes sold to institutional buyers.

Jefferson-Pilot is providing 2 different pictures of investment spreads, or the gap between the rates it pays purchasers of fixed-rate contracts and the rates it earns on its own investments.

Including the effect of Financial Accounting Standard 133, a complicated new accounting standard, the company’s average spread for fixed annuities and funding agreements narrowed to 1.53%, from 1.71%.

Excluding the effects of FAS 133, the average spread widened to 1.96%, from 1.64%, Jefferson-Pilot says.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.