Investment gains and stronger U.S. group disability results helped Unum Group Corp. increase profits during the second quarter.
Here is a summary of the latest insurance industry earnings news:
Unum Group Corp., Chattanooga, Tenn.
2 Q 2008 Results
NET INCOME: $240 million
REVENUE: $2.8 billion
NET REALIZED CAPITAL CHANGE: $26 million gain
2 Q 2007 Results
NET INCOME: $154 million
REVENUE: $2.7 billion
NET REALIZED CAPITAL CHANGE: $10 million gain
- Results include a $16 million after-tax net gain “resulting from changes in the fair value of embedded derivatives associated with certain modified coinsurance arrangements,” Unum says.
- Unum US is reporting $176 million in operating income, up from $92 million in operating income for the second quarter of 2007.
- U.S. group disability operating income increased to $46 million, up from an operating loss of $15 million. Unum notes that, excluding special charges, U.S. group disability operations would have reported $51 million in operating income for the second quarter of 2007. But the ratio of benefits costs to premiums fell to 90.5%, from 92.7%, Unum says.
- The Colonial Life worksite sales unit increased operating income 5.1%, to $68 million, and sales 3.3%, to $81 million. The number of new accounts increased 13%, but the dollar value of growth was slow because the average new case size declined, Unum says.
Prudential Financial Inc., Newark, N.J.
2 Q 2008 Results
NET INCOME: $590 million
REVENUE: $7.7 billion
REALIZED INVESTMENT CHANGE: $486 million loss
FINANCIAL SERVICES NET INCOME: $575 million
2 Q 2007 Results