Fluctuations in the reported value of stocks backing international variable annuities led to a drop in revenue at Hartford Financial Services Group Inc. during the second quarter.
Hartford, Hartford, is reporting $476 million in net income for the latest quarter on $5 billion in revenue, compared with $602 million in net income on $6.1 billion in revenue for the second quarter of 2005.
Variable annuity sales and deposits rose 12%, to $3.2 billion, and retirement plan sales and deposits increased 32%, to $1.2 billion, the company says.
Individual life sales increased 18%, to $67 million.
Although earned premium revenue increased only 2%, to $3.7 billion, total fee revenue increased 20%, to $1.2 billion, the company says.
Hartford adjusted the value of “equity securities held for trading” that support international variable annuity operations to reflect changes in market conditions. The adjustment caused one component of revenue, “equity securities held for trading,” to change to negative $970 million at the end of the second quarter, down from a positive value of $303 million a year earlier.
The company’s life operations realized $78 million in investment losses for the quarter.
In other earnings news:
- Genworth Financial Inc., Richmond, Va., is reporting $317 million in net income for the second quarter on $2.8 billion in revenue, up from $285 million in net income on $2.6 billion in revenue for the second quarter of 2005.
Total long term care insurance sales increased to $51 million, from $42 million.
An increase in the number of independent distributors selling Genworth LTC insurance more than offset lower career channel sales and helped generate an 8% increase in individual LTC insurance sales, Genworth says.
Sales of life insurance increased to $69 million, from $48 million, and operating earnings on life insurance increased to $77 million, from $55 million.
- Coventry Health Care Inc., Bethesda, Md., is reporting $135 million in net income for the second quarter on $1.9 billion in revenue, up from $129 million in net income on $1.7 billion in revenue for the second quarter of 2005.
The managed care company ended the quarter providing or administering health coverage for 2.5 million people, up about 2% from the total enrolled a year earlier.