Life and health insurers and distributors that reported second-quarter earnings this week came in with a wide range of results.

American International Group Inc., New York

2 Q 2009 Results

NET INCOME: $1.8 billion

TOTAL OTHER-THAN-TEMPORARY IMPAIRMENT LOSSES ON AVAILABLE-FOR-SALE SECURITIES: $1.1 billion

REVENUE: $30 billion

2 Q 2008 Results

NET INCOME: $5.4 billion loss

TOTAL OTHER-THAN-TEMPORARY IMPAIRMENT LOSSES ON AVAILABLE-FOR-SALE SECURITIES: $6.7 billion

REVENUE: $20 billion

– AIG kept $360 million in impairment losss out of net income and put it in “other comprehensive income.”

– The company has paid or incurred liabilities to pay a total of $169 million in severance pay since it began to restructure.

– Domestic life premium fell just 5%, to $590 million, but domestic retirement premium revenue fell 24%, to $574 million, and net cash from all operating activities fell to $8 billion, from $16 billion. Sales of domestic individual fixed annuities fell 22%, to $199 million, but home service fixed annuity sales increased 3%, to $41 million.

– Annuity surrenders have stabilized, but “certain bank and broker-dealer distributors continued to place restrictions on new sales,” AIG says.

Prudential Financial Inc., Newark, N.J.

2 Q 2009 Results

CONSOLIDATED NET INCOME: $163 million

FINANCIAL SERVICES NET INCOME: $538 million

NET INVESTMENT CHANGE: $3.8 billion loss

REVENUE: $7.7 billion

FINANCIAL SERVICES REVENUE: $6.3 billion

2 Q 2008 Results

CONSOLIDATED NET INCOME: $581 million

FINANCIAL SERVICES NET INCOME: $566 million

NET INVESTMENT CHANGE: $357 million loss

REVENUE: $7.7 billion

FINANCIAL SERVICES REVENUE: $6.9 billion

- Variable annuity and individual life sales and flows of cash were strong.

– Claims experience was favorable at the individual life, group life and group disability operations.

– Prudential says it will finish exercising a contract provision that permits it to “put” its stake in the Wachovia Securities joint venture to Wells Fargo and Company, San Francisco, by Jan. 1, 2010.

Principal Financial Group Inc., Des Moines, Iowa

2 Q 2009 Results

NET INCOME: $150 million

TOTAL OTHER-THAN-TEMPORARY IMPAIRMENT LOSSES ON AVAILABLE-FOR-SALE SECURITIES: $201 million

REVENUE: $2.2 billion

2 Q 2008 Results

NET INCOME: $168 million

TOTAL OTHER-THAN-TEMPORARY IMPAIRMENT LOSSES ON AVAILABLE-FOR-SALE SECURITIES: $46 million

REVENUE: $2.7 billion

- Principal kept about $66 million in impairment losss out of net income and put it in “other comprehensive income.”

– The company rised $1.9 billion in capital through stock and debt issues during the quarter.

– The company sees rising unemployment reducing the number of participants in existing employee benefit plans.

– Dental claims were higher than expected.

Protective Life Corp., Birmingham, Ala.

2 Q 2009 Results

NET INCOME: $91 million

OTHER-THAN-TEMPORARY IMPAIRMENT LOSSES: $49 million

REVENUE: $785 million

2 Q 2008 Results

NET INCOME: $38 million

OTHER-THAN-TEMPORARY IMPAIRMENT LOSSES: $80 million

REVENUE: $695 million

- Protective kept about $7.9 million in impairment losss out of net income and put in “other comprehensive income.”

- Annuity sales increased 57%, to $610 million.

– Sales of stable value products fell to none, from $588 million.

– Protective Chairman John Johns notes that carrying $1.5 billion in excess liquidity at the operating companies is a drag on earnings.

– Protective Life wants to take “advantage of disruptions in the marketplace to recruit talent and expand the depth and breadth of our distributor relationships, especially with respect to our universal life and annuity product lines,” Johns says.

The Phoenix Companies Inc., Hartford

2 Q 2009 Results

NET INCOME: $111 million loss

NET INVESTMENT CHANGE: $86 million loss

REVENUE: $440 million

2 Q 2008 Results

NET INCOME: $6.2 million

NET INVESTMENT CHANGE: $26 million loss

REVENUE: $566 million

– “During the first quarter, a number of the company’s distributors slowed or stopped selling the company’s products largely due to downgrades of Phoenix by rating agencies, and sales declines in the quarter reflect these actions,” Phoenix says. “The company is working to develop new relationships with an expanded range of distributors, including independent marketing organizations.”

FBL Financial Group Inc., West Des Moines, Iowa

2 Q 2009 Results

NET INCOME: $24 million

DERIVATIVES INCOME AND CAPITAL GAINS: $51 million gain

NET INVESTMENT IMPAIRMENT: $27 million loss

REVENUE: $304 million

2 Q 2008 Results

NET INCOME: $17 million

DERIVATIVES INCOME AND CAPITAL GAINS: $28 million loss

NET INVESTMENT IMPAIRMENT: $78 million loss

REVENUE: $145 million

– Premiums from the EquiTrust Life independent distribution channel fell to $199 million, from $538 million, because of product portfolio and crediting rate changes made to preserve capital.

American Equity Investment Life Holding Company, West Des Moines, Iowa

2 Q 2009 Results

NET INCOME: $9 million

CHANGE IN FAIR VALUE OF DERIVATIVES: $30 million gain

REVENUE: $279 million

2 Q 2008 Results

NET INCOME: $3.7 million

CHANGE IN FAIR VALUE OF DERIVATIVES: $73 million gain

REVENUE: $113 million

– Sales of fixed and indexed annuities were strong.

– American Equity obtained the capital needed to back the sales by expanding a reinsurance treaty, drawing on a bank line of credit, and paying a portion of agent commissions during the second and third year that a contract is in place.

National Western Life Insurance Company, Austin, Texas

2 Q 2009 Results

NET INCOME: $19 million

REVENUE: $141 million

2 Q 2008 Results

NET INCOME: $18 million

REVENUE: $113 million

– National Western Life is reporting $6.9 million in realized and unrealized gains on index options for the quarter and $108,000 in net gains realized gains on investments.

- “Although the challenging credit market conditions that arose in the latter half of 2008 have lessened somewhat, the industry is certainly not out of the woods yet in terms of portfolio exposures,” National Western Life President Ross Moody says. “We continue to be more fortunate than other companies in that our losses and impairment write downs have been minimal relative to our holdings.”

Unum Group Corp., Chattanooga, Tenn.

2 Q 2009 Results

NET INCOME: $267 million

NET INVESTMENT CHANGE: $87 million gain

REVENUE: $2.6 billion

2 Q 2008 Results

NET INCOME: $240 million

NET INVESTMENT CHANGE: $26 million gain

REVENUE: $2.7 billion

– U.S. group disability sales in the company’s core market increased 11%, to $45 million. Group life sales increased 26%, to $49 million.

– U.S. long term care insurance sales fell 44%.

– Premium income at the Colonial Life worksite marketing unit increased 3.4%, to $251 million, but new sales fell 3.9%, to $78 million.

Conseco Inc.,
Carmel, Ind.

2 Q 2009 Results

NET INCOME: $28 million

REVENUE: $1.1 billion

2 Q 2008 Results

NET INCOME: $489 million loss

REVENUE: $1.1 billion

– Operating profits at the Bankers Life and Casualty career distribution channel increased to $65 million, from $35 million.

– Sales through the career channel were up 30%, while sales through independent distributors were flat.

Humana Inc., Louisville, Ky.

2 Q 2009 Results

NET INCOME: $282 million

HEALTH PLAN MEMBERS: 10 million

REVENUE: $7.9 billion

2 Q 2008 Results

NET INCOME: $210 million

HEALTH PLAN MEMBERS: 11 million

REVENUE: $7.4 billion

- Members of small group health plans seem to be using their benefits more, possibly as a result of the state of the economy.

Health Net Inc., Woodland Hills, Calif.

2 Q 2009 Results

NET INCOME: $40 million

HEALTH PLAN MEMBERS: 3.6 million

REVENUE: $4 billion

2 Q 2008 Results

NET INCOME: $77 million

HEALTH PLAN MEMBERS: 3.8 million

REVENUE: $3.8 billion

- “We are encouraged that, due to new sales, the commercial membership attrition rate is slowing,” says Health Net Chief Operating Officer Jim Woys. “However, a weak labor market continues to have an impact on membership.”

Triple-S Management Corp., San Juan, Puerto Rico

2 Q 2009 Results

NET INCOME: $19 million

REVENUE: $491 million

2 Q 2008 Results

NET INCOME: $12 million

REVENUE: $437 million

- Triple-S runs Blue Cross and Blue Shield plans in Puerto Rico.

National Financial Partners Corp., New York

2 Q 2009 Results

NET INCOME: $10 million

REVENUE: $224 million

2 Q 2008 Results

NET INCOME: $8.9 million

REVENUE: $287 million

- NFP, a financial services distributor, says the weak economy has hit individual life revenue hard, but that benefits revenue increased slightly.

– The company is continuing to focus on expense reduction efforts.

The Marketing Alliance Inc., St. Louis

2 Q 2009 Results

NET INCOME: $1.2 million

REVENUE: $2.4 million

2 Q 2008 Results

NET INCOME: $488,790

REVENUE: $2 million

- TMA distributes annuities and other financial services products.