What 4 Carriers Are Saying About Agents and Agent Comp

Only a few U.S. life and annuity insurers have stock that trades on the New York Stock Exchange or Nasdaq, but many of those insurers are giants.

Their quarterly earnings releases, financial supplements and reports can give financial professionals insights into the chief financial officers (CFOs) might look more nervous than the chief executive officers.

(Related: Will Hedging Demons Haunt Q3 Life and Annuity Issuer Earnings?)

The stuff that keeps the CFO up at night determines what the distribution can sell, and what the products can cost.

Here’s a look at what four publicly traded carriers have said about their third-quarter results so far this week, and what’s been happening to their distribution force.

We also provide the stock symbol, or “ticker symbol.” To read a company’s official U.S. Securities and Exchange Commission filings for yourself, you can enter the ticker symbol into the SEC’s Edgar search system, here.

1. Aflac Inc.

Columbus, Georgia | Ticker symbol: AFL

Aflac as a whole is reporting $845 million in net income for the third quarter on $5.6 billion in revenue, up from $716 million in net income on $5.5 billion in revenue for the third quarter of 2017.

The company has large operations in Japan as well as in the United States.

The Aflac U.S. unit is reporting $334 million in pretax adjusted earnings for the latest quarter on $1.6 billion in adjusted revenue, up from $316 million in earnings on $1.6 billion in revenue for the year-earlier quarter.

Annualized premiums from new U.S. product sales increased to $359 million, from $348 million for the year-earlier quarter.

Here’s what happened to sales of some Aflac U.S. products:

• Short-term disability: Increased to $84 million, from $82 million.
• Life: Increased to $21 million, from $19 million.
• Hospital indemnity: Increased to $56 million, from $49 million.
• Accident: Increased to $109 million, from $104 million.
• Critical care: Fell to $74 million, from $76 million.
• Dental and vision: Held steady at $18 million.

The number of U.S. career agents increased to 4,144, from 4,130, and the number of brokers increased to 797, from 773.

Production per average weekly producer increased to $43,558, from $40,962.

2. Principal Financial Group Inc.

Des Moines, Iowa | Ticker symbol: PFG

Principal Financial is reporting $460 million in net income for the third quarter on $4.3 billion in revenue, compared with $813 million in net income on $4.6 billion in revenue for the third quarter of 2017.

The company’s insurance solutions unit, which includes its specialty benefits operation and its individual life unit, is reporting $118 million in pretax operating earnings on $1 billion in revenue, compared with $83 million in pretax operating earnings on $985 million in revenue for the year-earlier quarter.

Here’s what happened to sales:

• Group dental and vision: Increased to $37 million, from $28 million.
• Group life: Fell to $12 million, from $13 million.
• Group disability: Fell to $16 million, from $17 million.
• Individual disability: Increased to $15.7 million, from $15.5 million.
• Universal and variable universal life: Increased to $32 million, from $24 million.
• Traditional life insurance: Fell to $18 million, from $20 million.

Commission spending at the specialty benefits unit increased to $62 million, from $63 million.