Annuity sales increased at Allstate Corp. during the third quarter as investment market turmoil took a toll on overall results.

Here is a summary of the latest life and health insurance industry earnings news:

Allstate Financial Corp., Northbrook, Ill.

3 Q 2008 Results

NET INCOME: $923 million loss

NET REALIZED CAPITAL CHANGE: $1.3 billion loss

REVENUE: $7.3 billion

3 Q 2007 Results

NET INCOME: $978 million

NET REALIZED CAPITAL CHANGE: $121 million gain

REVENUE: $9 billion

- The Allstate Financial unit is reporting $88 million in operating income and a $196 million net loss on $1.9 billion in premiums and deposits for the latest quarter, compared with $147 million in operating income and $70 million in net income on $2.3 billion in premiums and deposits for the third quarter of 2007.

- Financial unit premiums and deposits dropped partly because the unit stopped issuing institutional products in an effort to conserve cash.

- Mortality experience on life and annuity products was less favorable, and investment spreads were narrower.

- Premiums and deposits from annuity sales increased 11%, to $1.1 billion, thanks to a 14% increase in sales of fixed deferred annuities.

- Sales of indexed annuities fell 9.2%, to $138 million.

- Sales of life insurance products increased 0.9%, to $553 million.

Aflac Inc., Columbus, Ga.

3 Q 2008 Results

NET INCOME: $120 million

NET REALIZED CAPITAL CHANGE: $389 million loss

REVENUE: $3.7 billion

3 Q 2007 Results

NET INCOME: $420 million

NET REALIZED CAPITAL CHANGE: $1 million gain

REVENUE: $3.9 billion

- In Japan, sales of medical insurance fell slightly, but sales of cancer insurance rose 5.5% as a result of efforts to sell upgrades to holders of in-force cancer policies.

- In the United States, Hurricane Ike disrupted sales in Aflac’s biggest markets. Sales increased just 0.1%, to $369 million.

- The board has declared a cash dividend of 24 cents per share for the fourth quarter and a dividend of 28 cents per share for the first quarter of 2009.

StanCorp Financial Group Inc., Portland, Ore.

3 Q 2008 Results

NET INCOME: $40 million

NET REALIZED CAPITAL CHANGE: $49 million loss

REVENUE: $646 million

3 Q 2007 Results

NET INCOME: $67 million

NET REALIZED CAPITAL CHANGE: $400,000

REVENUE: $683 million

- StanCorp is the parent of Standard Insurance.

- Sales of group insurance products fell to $34 million, from $125 million, in part because the third quarter of 2007 included 3 unusually large group sales.

- Insurance services income increased to $103 million, from $93 million.

- StanCorp says it does not expect to need to raise capital any time soon.

Reinsurance Group of America Inc., St. Louis

3 Q 2008 Results

NET INCOME: $25 million

INVESTMENT-RELATED LOSSES: $241 million

REVENUE: $1.3 billion

3 Q 2007 Results

NET INCOME: $77 million

INVESTMENT-RELATED LOSSES: $62 million

REVENUE: $1.4 billion

- Operating income increased to $118 million, from $96 million.

- Net income includes $21 million in losses resulting from the decline in the fair value of embedded derivatives associated with modified coinsurance and funds withheld treaties. “This non-cash, unrealized loss is due to widening credit spreads on the investment portfolios underlying certain funds withheld annuity reinsurance treaties,” RGA says.

- RGA has a $750 million syndicated credit facility, and it participates in the Federal Home Loan Bank borrowing program. It does not issue commercial paper, and it believes its credit ratings are stable.

- The company is seeing big opportunities to help insurers remove risk from their balance sheets through block reinsurance transactions or sales of entire companies. “To the extent we are successful in supporting transactions of this nature through reinsurance structures, we would likely need to add to our equity capital base,” RGA says. “We would price any such block reinsurance opportunities for returns that would be accretive to shareholders.”

WellPoint Inc., Indianapolis

3 Q 2008 Results

NET INCOME: $821 million

NET REALIZED CAPITAL CHANGE: $563 million loss

REVENUE: $15 billion

MEDICAL MEMBERS: 35 million

3 Q 2007 Results

NET INCOME: $868 million

NET REALIZED CAPITAL CHANGE: $9.5 million gain

REVENUE: $15 billion

MEDICAL MEMBERS: 35 million

- At the commercial group health unit, self-funded enrollment increased but enrollment in fully insured plans fell. WellPoint “is executing on a series of initiatives, including account retention programs, broker incentive programs and the introduction of new products, all focused on growing commercial fully insured enrollment,” the company says.

- An increase in the cost of health care services, rather than an increase in the volume of services used, has been the main factor driving increases in medical costs.

- Behavioral health program membership increased to about 24 million, from 20 million.

- Dental program membership fell to 4.6 million, from 5 million.

Coventry Health Care Inc., Bethesda, Md.

3 Q 2008 Results

NET INCOME: $85 million

REVENUE: $3 billion

MEDICAL MEMBERS: 4.6 million

3 Q 2007 Results

NET INCOME: $169 million

REVENUE: $2.5 billion

MEDICAL MEMBERS: 4.7 million

- Coventry lost about $36 million on investments sold, written off or written down during the quarter.

- Commercial loss ratios were higher than expected in some markets, and Coventry has responded by increasing rates.

- Sales of fully insured health plans were lower than Coventry had expected.