Clark Inc., a company that sells corporate-owned life insurance and other executive benefits products, says benefits from a COLI policy added $1.6 million to its income during the second quarter.
Clark, Barrington, Ill., is reporting $2.9 million in net income for the latest quarter on $68 million in revenue, up from $1.7 million in net income on $70 million in revenue for the second quarter of 2004.
Although executive benefits renewal revenue fell to $7.4 million during the second quarter, from $8.1 million, first-year executive benefits revenue increased to $7.2 million, from $6.8 million.
The company notes that it received $1.6 million in life insurance proceeds as the result of the death of a sales consultant in its health care group. Because the proceeds were exempt for income taxes, they lowered the company’s effective tax rate for the quarter to 23.8%, from 34.9% for the second quarter of 2004, Clark says.