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October 24, 2008 at 12:00 PM
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.
