As major medical issuers soaked up investor attention with news about actual, and possible, acquisitions, insurers in other health submarkets released earnings, too.
Aflac Inc. (NYSE:AFL) had news about its big operation in Japan, and efforts to realign distribution more toward the brokers that serve large employers in the United States.
Unum Group Corp. (NYSE:UNM) compensated for suffocating interest rates by increasing premiums for group long-term disability (LTD) insurance and in-force long-term care insurance (LTCI) policies.
What Your Peers Are Reading
Unlike executives at major medical insurers, who seem to talk about agents and brokers as little as possible during their quarterly earnings conference calls with securities analysts, the executives at the insurers in the non-medical health markets still seem to be interested in agents and brokers.
For a closer look at what those companies said about their second-quarter results, read on.
The Duck’s company is reporting $573 million in net income on $5.3 billion in revenue for the latest quarter, compared with $810 million in net income on $5.8 billion in revenue for the second quarter of 2014.
The yen-dollar exchange rate fell 16 percent between the second quarter of 2014 and the second quarter of 2015. Because Aflac gets twice as much premium revenue in Japan as it gets in the United States, the exchange-rate fluctuations hit the company hard.
The U.S. operations produced $293 million in pretax operating earnings for the latest quarter on $1.5 billion in revenue, compared with $300 million in pretax operating earnings on $1.5 billion for the year-earlier quarter.
Teresa White, Aflac’s president, noted that the company has hired 120 U.S. broker sales professionals, in an effort to increase sales to larger employers, and that the company is also trying to increase the number of district sales coordinators, to increase the number of career agent recruits and improve the quality of the training the agent recruits receive.
In the second quarter, the number of U.S. career agent recruits increased about 2.6 percent, White said.
Unum is reporting $224 million in net income for the second quarter on $2.7 billion in revenue, compared with $239 million in net income on $2.7 billion in revenue for the second quarter of 2014.
Group long-term disability revenue increased to $409 million, from $386 million, and group short-term disability (STD) insurance increased to $152 million, from $138 million.
U.S. sales of group STD insurance sales increased 39 percent, to $32 billion, and U.S. sales of LTD increased 11 percent, to $52 billion.