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February 13, 2009 at 07:00 PM
More U.S. life insurers, health insurers and insurance distributors took their turn on the hot seat this week.
Lincoln National Corp., Radnor, Pa.
4 Q 2008 Results
NET INCOME: $506 million loss
NET REALIZED INVESTMENT CHANGE: $190 million loss
INTANGIBLES IMPAIRMENT: $166 million
REVENUE: $2.3 billion
4 Q 2007 Results
NET INCOME: $113 million
NET REALIZED INVESTMENT CHANGE: $146 million loss
INTANGIBLES IMPAIRMENT: 0
REVENUE: $2.6 billion
- The company variable annuity hedging program produced a gain of $147 million.
- The company has spent $15 million on severance and related expenses to achieve an estimated $75 million in annual savings. The company hopes to cut enough expenses to reduce annual expenses by another $50 million to $75 million by the end of the year.
- Individual annuities attracted $376 million more cash than they lost, but the net flow of cash into individual annuities was down from $1.8 billion in the fourth quarter of 2007.
Genworth Financial Inc., Richmond, Va.
4 Q 2008 Results
NET INCOME: $321 million loss
RETIREMENT AND PROTECTION OPERATING RESULTS: $189 million loss
NET REALIZED INVESTMENT CHANGE: $89 million loss
REORGANIZATION COSTS: $25 million
REVENUE: $2.6 billion
4 Q 2007 Results
NET INCOME: $178 million
RETIREMENT AND PROTECTION OPERATING RESULTS: $174 million
NET REALIZED INVESTMENT CHANGE: $134 million loss
REORGANIZATION COSTS: 0
REVENUE: $2.8 billion
- Long term care insurance operating income increased to $49 million, from $36 million, but LTC insurance sales fell to $64 million, from $66 million.
- Net operating results for the latest quarter include a $238 million “impairment of all goodwill associated with retirement income lines.”
- Fixed annuity sales more than doubled, to $426 million.
Principal Financial Group Inc., Des Moines, Iowa
4 Q 2008 Results
NET INCOME: $800,000
NET REALIZED CAPITAL CHANGE: $226 million loss
REVENUE: $2.3 billion
4 Q 2007 Results
NET INCOME: $42 million
NET REALIZED CAPITAL CHANGE: $332 million loss
REVENUE: $2.6 billion
- Operating earnings increased to $51 million, from $42 million, at the life and health insurance unit.
- The company notes that it controlled risk by continuing “to limit the size of the variable annuities with guaranteed living benefits business, minimizing the impact of equity markets on life company capital ratios.”
- Principal notes that claims costs at its high-deductible health plans tend to be higher during the fourth quarter than they are during the rest of the year.
Protective Life Corp., Birmingham, Ala.
4 Q 2008 Results
NET INCOME: $16 million loss
NET REALIZED INVESTMENT CHANGE: $73 million loss
REVENUE: $585 million
4 Q 2007 Results
NET INCOME: $61 million
