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October 29, 2010 at 08:00 PM
The life and health insurers that released earnings this week reported profits.
MetLife Inc., New York (NYSE:MET)
3Q 2010 Results
NET INCOME: $320 million
REVENUE: $12 billion
3Q 2009 Results
NET INCOME: $625 million loss
REVENUE: $10 billion
– MetLife is in the process of acquiring American Life Insurance Company and a related company, Delaware American Life Insurance Company (ALICO), from American International Group Inc., New York (NYSE:AIG). MetLife has removed the warning about “difficult and adverse conditions in the global and domestic capital and credit markets” that was at the top of the list of disclaimers accompanying the second-quarter earnings release. Warnings about the ALICO deal are now at the top of the list, and the number of ALICO warnings has increased to about 15, from 1.
– U.S. annuity sales increased 25%, to $5 billion.
– The net inflow of cash increased to $39 million for group life, up from $28 million, but fell to $193 million, from $210 million, for individual life. Total individual life sales fell to $117 million, from $127 million.
Ameriprise Financial Inc., Minneapolis (NYSE:AMP)
3Q 2010 Results
NET INCOME: $312 million
REVENUE: $2.5 billion
3Q 2009 Results
NET INCOME: $260 million
REVENUE: $2 billion
– Fixed annuities suffered net outflows, but a new RAVA 5 variable annuity and an updated guaranteed minimum withdrawal benefit rider sold well. Annuity persistency has been better.
– Ameriprise executives said during the company’s earnings call that they have concerns about an increase in disability insurance and long term care (LTC) insurance claims. Executives said they believe the increase in disability claims was the result of a random fluctuation. They are responding to the increase in LTC insurance claims by repricing the policies.
Genworth Financial Inc., Richmond, Va. (NYSE:GNW)
3Q 2010 Results
NET INCOME: $122 million
REVENUE: $2.7 billion
3Q 2009 Results
NET INCOME: $45 million
REVENUE: $2.4 billion
– Combined sales of term life and a new “TermUL” product were 68% higher than in the third quarter of 2009.
– Individual long term care insurance sales increased 36%.
– The wealth management unit attracted $461 million in net inflows, increasing total assets under management to about $21 billion.
Symetra Financial Corp., Bellevue, Wash. (NYSE:SYA)
3Q 2010 Results
NET INCOME: $57 million
REVENUE: $486 billion
3Q 2009 Results
NET INCOME: $44 million
REVENUE: $452 billion
– Fixed annuity sales were soft because of a decrease in interest rates, but sales of bank-owned life insurance were strong.
Reinsurance Group of America Inc., Chesterfield, Mo. (NYSE:RGA)
3Q 2010 Results
NET INCOME: $128 million
REVENUE: $2 billion
3Q 2009 Results
NET INCOME: $118 million
REVENUE: $1.8 billion
– U.S. mortality was in line with expectations, and mortality in Canada and the Asian Pacific region was better than expected.
Aflac Inc., Columbus, Ga. (NYSE:AFL)
3Q 2010 Results
NET INCOME: $690 million
REVENUE: $5.4 billion
3Q 2009 Results
NET INCOME: $363 million
REVENUE: $4.5 billion
– Aflac generates a majority of its revenue in Japan and benefited during the latest quarter from the strength of the yen. Overall operating earnings were 16% higher than in the third quarter of 2009; excluding the effects of exchange rate fluctuations, the increase was about 11%.
– In Japan, sales of ordinary life insurance, medical insurance and child endowment products were strong. Sales through the bank channel were also strong.
– In the United States, total new sales fell 5.3%, to $324 million. Recruitment of new sales associates was weak, and sales “continued to reflect weak economic conditions in the United States,” Aflac says.
