Most of the insurers and reinsurers that released earnings this week reported profits, but layoffs at client employers affected the health insurers and other companies with employee benefits operations.

MetLife Inc., New York (NYSE:LNC)

3 Q 2009 Results
NET RESULTS: $620 million loss
NET REALIZED INVESTMENT CHANGE: $650 million loss
NET REALIZED INVESTMENT CHANGE REPORTED IN “OTHER COMPREHENSIVE INCOME”: $245 million
REVENUE: $6.6 billion

3 Q 2008 Results
NET RESULTS: $630 million net income
NET REALIZED INVESTMENT CHANGE: $748 million loss
NET REALIZED INVESTMENT CHANGE REPORTED IN “OTHER COMPREHENSIVE INCOME: 0
REVENUE: $6.8 billion

– Operating earnings, which exclude the investment swings, increased to $718 million, from $608 million in the third quarter of 2008.

– “Growth in the dental business drove a 3% increase in the non-medical health and other premiums,” and group life revenue increased 2%.

– Total individual life first-year premiums and deposits amounted to $255 million, down from $258 million. Sales of variable and universal life were down, but sales of traditional life increased 50%.

– Total individual annuity deposits fell to $4 billion, from $4.3 billion, with annuity lapse rates dropping for the third consecutive quarter, and annuity net flows staying positive for the sixth consecutive quarter.

– MetLife says derivatives contracts that buffered it against some of the financial pain that competitors faced during the worst months of the crisis now are doing worse because overall conditions are improving. “MetLife uses derivatives – in connection with its broader portfolio management efforts – to hedge a number of risks, including changes in interest rates and foreign currencies,” the company says. “During the [latest quarter, an improvement in MetLife’s own credit spread, which impacts the valuation of certain insurance liabilities, contributed approximately $582 million, after income tax, to the derivative losses. This reverses derivative gains that occurred in earlier quarters when the credit spread widened.”

Lincoln National Corp., Radnor, Pa. (NYSE:LNC)

3 Q 2009 Results
NET INCOME: $153 million
NET REALIZED INVESTMENT CHANGE: $2.3 million loss
REVENUE: $2.1 billion
3 Q 2008 Results
NET INCOME: $148 million
NET REALIZED INVESTMENT CHANGE: $42 million loss
REVENUE: $2.3 billion

– Operating income fell to $276 million, from $298 million.

– Group protection income increased to $35 million, from $27 million, and the non-medical loss ratio was just 68%. Group disability and group life claims were lower than expected.

– Although group protection net earned premiums were up 2%, the total “reflected lower premium persistency due to workforce and wage reductions within small businesses,” Lincoln says.

– Annualized voluntary benefits sales increased 17%, to $80 million.

– Individual life sales fell to $146 million, from $190 million, but term life products and the MoneyGuard product, which links universal life insurance with a long term care rider, performed well.

– Individual variable annuity deposits and net cash flows were down, but fixed and indexed annuity product deposits totaled $1.3 billion and were about twice as high as they were in the third-quarter of 2008.

Genworth Financial Inc., Richmond, Va. (NYSE:GNW)

3 Q 2009 Results
NET INCOME: $45 million
NET REALIZED INVESTMENT CHANGE: $122 million loss
REVENUE: $1.5 billion
3 Q 2008 Results
NET INCOME: $258 million loss
NET REALIZED INVESTMENT CHANGE: $816 million loss
REVENUE: $1.7 billion

– “We are encouraged by the multiple signs of stabilization and improvement in our served markets,” Genworth Chairman Michael Fraizer says.

– Long term care insurance sales fell to $53 million, from $64 million in the third quarter of 2008, and life insurance sales fell to $50 million, from $76 million.

– Net flows into wealth management products increased to $468 million, from $183 million.

Reinsurance Group of America Inc., Chesterfield, Mo. (NYSE:RGA)

3 Q 2009 Results
NET INCOME: $118 million
NET REALIZED INVESTMENT CHANGE: $17 million loss
NET REALIZED INVESTMENT CHANGE REPORTED IN “OTHER COMPREHENSIVE INCOME”: $4 million transferred to revenue
REVENUE: $1.8 billion
3 Q 2008 Results
NET INCOME: $25 million
NET REALIZED INVESTMENT CHANGE: $92 million loss
NET REALIZED INVESTMENT CHANGE REPORTED IN “OTHER COMPREHENSIVE INCOME: 0
REVENUE: $1.3 billion

-U.S. traditional sub-segment pre-tax income increased to $64 million, from $11 million, but claim levels were somewhat higher to a number of claims on policies with death benefits greater than $1 million incurred during the quarter.

Aflac Inc., Columbus, Ga. (NYSE:AFL)

3 Q 2009 Results
NET INCOME: $363 million
NET REALIZED INVESTMENT CHANGE: $226 million loss
REVENUE: $4.5 billion
3 Q 2008 Results
NET INCOME: $100 million
NET REALIZED INVESTMENT CHANGE: $389 million loss
REVENUE: $3.7 billion

– Aflac is a major player in the Japanese cancer insurance market, and the growing weakness of the dollar relative to the yen helped increase the dollar value of the company’s earnings.

– An updated Japanese medical insurance product has been selling well.

– In the United States, Aflac U.S. total new annualized premium sales fell 7.2%, to $342 million. But “growth in the number of new payroll accounts remained strong and encouraging,”

– About $212 million of the investment losses realized during the quarter resulted from “impairment losses on perpetual, or so-called ‘hybrid,’ securities of four issuers,” Aflac says. Aflac is recording impairment charges on a Generally Accepted Accounting Principles basis, because the issuers’ ratings are now below investment grade. But “no impairment charges will be recorded on a statutory accounting basis for these perpetual securities because Aflac’s credit analysis suggests that the issuers of the perpetual securities that were impaired on a GAAP basis will be able to meet their contractual obligations for payment.”

Assurant Inc., New York (NYSE:AIZ)

3 Q 2009 Results
NET INCOME: $145 million
NET REALIZED INVESTMENT CHANGE: $20 million gain
REVENUE: $2.2 billion
3 Q 2008 Results
NET INCOME: $111 million loss
NET REALIZED INVESTMENT CHANGE: $299 million loss
REVENUE: $2 billion

– At Assurant Health, individual medical insurance premiums fell less than 1% during the third quarter, but an increase in lapse rates caused small group premiums to drop 11%. Utilization trends stabilized but were relatively high.

– At Assurant Employee Benefits, net earned premiums fell 8%, to $256 million. The decrease reflects “economic pressures in the small business sector and previously disclosed client losses in the alternative distribution channel,” the company says. “Small businesses continue to reduce headcount, curtail salary increases and scale back their benefit offerings,” Michael Peninger, the chief financial officer, said during Assurant’s earnings call.

Torchmark Corp., McKinney, Texas (NYSE:TMK)

3 Q 2009 Results
NET INCOME: $101 million
NET REALIZED INVESTMENT CHANGE: $75 million loss
NET REALIZED INVESTMENT CHANGE REPORTED IN “OTHER COMPREHENSIVE INCOME”: $23 million
REVENUE: $785 million
3 Q 2008 Results
NET INCOME: $63 million
NET REALIZED INVESTMENT CHANGE: $93 million loss
NET REALIZED INVESTMENT CHANGE REPORTED IN “OTHER COMPREHENSIVE INCOME: 0
REVENUE: $753 million

Universal American Corp., Rye Brook, N.Y. (NYSE:UAM)

3 Q 2009 Results
NET INCOME: $60 million
REVENUE: $1.15 billion
3 Q 2008 Results
NET INCOME: $49 million
REVENUE: $1.1 billion

– Medicare Part D prescription drug plan revenue has been higher than in 2008, and Part D plan claims have been lower, the company says.

WellPoint Inc., Indianapolis (NYSE:WLP)

3 Q 2009 Results
NET INCOME: $2 billion
NET REALIZED INVESTMENT CHANGE: $482 million loss
NET REALIZED INVESTMENT CHANGE REPORTED IN “OTHER COMPREHENSIVE INCOME: $72 million loss
HEALTH PLAN MEMBERS: 34 million
REVENUE: $46 billion
3 Q 2008 Results
NET INCOME: $2.2 billion
NET REALIZED INVESTMENT CHANGE: $762 million loss
NET REALIZED INVESTMENT CHANGE REPORTED IN “OTHER COMPREHENSIVE INCOME: 0
HEALTH PLAN MEMBERS: 35 million
REVENUE: $46 billion

– Workforce reductions at employer-based customers caused a 164,000 net negative in-group drop in enrollment.

Aetna Inc., Hartford (NYSE:AET)

3 Q 2009 Results
NET INCOME: $326 million
HEALTH PLAN MEMBERS: 19 million
REVENUE: $8.7 billion
3 Q 2008 Results
NET INCOME: $277 million
HEALTH PLAN MEMBERS: 18 million
REVENUE: $8 billion

– The commercial medical benefits ratio was higher than expected, in part because of costs related to the H1N1 flu and an increase in the percentage of workers leaving employers who took up COBRA health benefits continuation coverage.

– Aetna’s commercial customers may be dropping dental insurance before health insurance. Commercial medical enrollment fell by 25,000 between the second and third quarters, while dental membership fell by 386,000.

Centene Corp., St. Louis (NYSE:CNC)

3 Q 2009 Results
NET INCOME: $24 million
HEALTH PLAN MEMBERS: 1.4 million
REVENUE: $1 billion
3 Q 2008 Results
NET INCOME: $18 million
HEALTH PLAN MEMBERS: 1.2 million
REVENUE: $859 million

– Centene runs health plans for Medicaid programs and other government health programs.