The life and health insurers and distributors that released earnings this week came out with solid first-quarter results.
American International Group Inc., New York(NYSE:AIG)
1 Q 2010 Results
NET INCOME: $2.1 billion
REVENUE: $16 billion
1 Q 2009 Results
NET INCOME: $5.1 billion loss
REVENUE: $13 billion
– The domestic life and retirement services business is reporting $327 million in pretax income on $4 billion in revenue, compared with a $1.8 billion prtax loss on $3.4 billion in revenue for the first quarter of 2010, even though premiums and other considations fell 14%, to $$667 million.
– Domestic group retirement products held steady at about $1.6 billion.
– Sales of individual variable annuities increased 36%, to $357 million.
– The net individual fixed annuity spread rate increased to 2.51% in the first quarter, from 0.93%.
Prudential Financial Inc., Newark, N.J. (NYSE:PRU)
1 Q 2010 Results
NET INCOME: $697 million
REVENUE: $9.3 billion
1 Q 2009 Results
NET INCOME: $14 million
REVENUE: $8.5 billion
– The financial services business is reporting $536 million in net income for the first quarter, up from a $5 million net loss for the first quarter of 2009.
– In the U.S. retirement and investment management division, “results benefited $53 million from net reductions in reserves for guaranteed minimum death and income benefits and $21 million from a net reduction in amortization of deferred policy acquisition and other costs, reflecting an updated estimate of profitability for this business,” the company says.
– Group life claims experience was “less favorable” than in the first quarter of 2010.
Principal Financial Group Inc., Des Moines, Iowa (NYSE:PFG)
1 Q 2010 Results
NET INCOME: $204 million
REVENUE: $2.3 billion
1 Q 2009 Results
NET INCOME: $123 million
REVENUE: $2.2 billion
– Group disability claims experience was “unfavorable.”
– Expense management is continuing in the individual life business.
– Accumulation business fee revenue increased 22%, to $61 million.
Nationwide Financial Services Inc., Columbus, Ohio
1 Q 2010 Results
NET INCOME: $62 million
REVENUE: $967 million
1 Q 2009 Results
NET INCOME: $107 million loss
REVENUE: $1 billion
– Nationwide Financial has been an affiliate of of Nationwide Mutual Insurance Company, which is reporting $396 million in net income on $5.1 billion in revenue for the first quarter, up from a $106 million net loss on $4.9 billion in revenue for the first quarter of 2009.
– Other-than-temporary impairment losses fell to $101 million, from $327 million.
– Nationwide terminated the securities registration of notes issued by Nationwide Financial April 26. The financial services subsidiary is now a wholly owned subsidiary of Nationwide, rather than a public company.
Protective Life Corp., Birmingham, Ala. (NYSE:PL)
1 Q 2010 Results
NET INCOME: $32 million
REVENUE: $792 million
1 Q 2009 Results
NET INCOME: $10 million
REVENUE: $723 million
– Variable annuity sales increased to $350 million, from $139 million; fixed annuity sales fell to $218 million, from $298 million.
Primerica Inc., Duluth, Ga. (NYSE:PRI)
1 Q 2010 Results
NET INCOME: $143 million
REVENUE: $607 million
1 Q 2009 Results
NET INCOME: $113 million
REVENUE: $543 million
– Primerica became a stand-alone public company April 1. It had been a subsidiary of Citigroup Inc., New York.
Phoenix Companies Inc., Hartford (NYSE:PNX)
1 Q 2010 Results
NET INCOME: $14 million
REVENUE: $518 million
1 Q 2009 Results
NET INCOME: $75 million loss
REVENUE: $511 million
– “Phoenix is working to develop new relationships with distributors that focus primarily on the middle market, including independent marketing organizations,” Phoenix says. The company “has added nearly two dozen new distribution agreements with IMOs.”
– Saybrus Partners, a new Phoenix unit that sells insurance products from other companies, started up in the first quarter and submitted a total of about 300 applications.
FBL Financial Group Inc., West Des Moines, Iowa (NYSE:FFG)
1 Q 2010 Results
NET INCOME: $18 million
REVENUE: $269 million
1 Q 2009 Results
NET INCOME: $1.5 million loss
REVENUE: $223 million
– Farm Bureau Life sales of traditional annuities fell 18%, and sales of variable annuities increased 8%. Sales of traditional and universal life increased 4%.
– The investment spread on direct fixed annuity liabilities increased to 2.03%, from 1.57%.
– Interest-sensitive and index-product benefits increased to $122 million, from $114 million.
American Equity Investment Life Holding Company, West Des Moines, Iowa (NYSE:AEL)
1 Q 2010 Results
NET INCOME: $15 million
REVENUE: $350 million
1 Q 2009 Results
NET INCOME: $26 million
REVENUE: $183 million
– Annuity sales before coinsurance increased 30%, to $847 million.
– The investment spread on annuity liabilities increased to 3.17%, from 2.97%.
– Interest-sensitive and index-product benefits increased to $197 million, from $60 million.