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October 26, 2007 at 01:05 PM
Big increases in profits for individual annuity, individual life, group benefits and international life operations helped lead to higher earnings at Hartford Financial Services Group Inc. during the third quarter.
Hartford Financial, Hartford, is reporting $851 million in net income for the latest quarter on $5.8 billion in revenue, compared with $758 million in net income on $7.4 billion in revenue for the third quarter of 2006.
Net income from life operations increased 23%, to $525 million, the company says.
Sales of variable annuities and mutual funds were up 25%, and retail assets under management increased 19%, to $184 billion.
Total company revenue was down because net investment results from equity securities held for trading fell to a loss of $698 million, from a gain of $1.2 billion reported for the third quarter of 2006
The loss on equity securities held for trading “includes investment income and mark-to-market effects of equity securities held for trading supporting the international variable annuity business, which are classified in net investment income with corresponding amounts credited to policyholders within benefits, losses and loss adjustment expenses,” Hartford says.
In other earnings news:
- Genworth Financial Inc., Richmond, Va., is reporting $339 million in net income for the third quarter on $2.9 billion in revenue, up from $304 million in net income on $2.6 billion in revenue for the third quarter of 200.
Net operating income increased to $82 million, from $39 million, for the retirement income unit; to $81 million, from $79 million, for the life insurance unit; and to $39 million, from $38 million, for the long term care insurance unit.
Sales of fee-based retirement income products increased to $665 million, from $441 million, as sales of spread-based retirement income products and institutional products fell to $582 million, from $1.2 billion.
Sales of long term care insurance increased to $60 million, from $51 million.
In addition to owning large insurance operations, Genworth has a large mortgage insurance operation.
The U.S. mortgage insurance unit is reporting $39 million in net operating income on $13 billion in primary sales flow, compared with $53 million in net operating income on $6.9 billion in primary sales flow for the third quarter of 2006.
The principal U.S. mortgage insurance subsidiary “released $300 million of excess mortgage insurance contingency reserves and paid a $350 million dividend to the holding company for redeployment,” Genworth says.
“U.S. mortgage insurance results fell short of our targets, reflecting the current U.S. residential real estate market, but were strong in light of a difficult operating environment,” Genworth Chairman Michael Fraizer says in a statement.
- Ameriprise Financial Inc., Minneapolis, is reporting $198 million in net income for the third quarter on $2.2 billion in revenue, up from $174 million in net income on $2 billion in revenue for the third quarter of 2006.
- Reinsurance Group of America Inc., St. Louis, is reporting $77 million in net income for the third quarter on $1.4 billion in revenue, up from $74 million in net income on $1.3 billion in revenue for the third quarter of 2006.
