How 6 Annuity Issuers Are Doing Now

The company says expansion in the financial institutions channel and launches of new products helped it increase deposits from new retail annuity sales to $2.2 billion in the third quarter, from $1.3 billion in the year-earlier quarter.

Brighthouse Financial Inc.

The Charlotte, North Carolina-based company is reporting a $269 million net loss for the third quarter on $1.4 billion in revenue, compared with a $943 million net loss on $2 billion in revenue for the third quarter of 2017.

The annuity unit is reporting $401 million in adjusted earnings for the quarter on $1.2 billion in adjusted revenue, up from $355 million in adjusted earnings on $1.1 billion in revenue for the year-earlier quarter.

Here’s how sales of some products did:

• Shield Annuity Contracts: Increased to $867 million, from $653 million,.
• All Variable and Indexed Annuities: Increased to $1.2 billion, from $960 million.
• Fixed Annuities: Increased to $350 million, from $114 million.
• Single-Premium Immediate Annuities (SPIAs): Increased to $16 million, from $7 million.

FBL Financial Group Inc.

The West Des Moines, Iowa-based company is reporting $31 million in net income for the third quarter on $188 million in revenue, up from $26 million in net income on $182 million in revenue for the third quarter of 2017.

Annuity commission expense, net of deferrals, fell to $374,000, from $537,000.

Life commission expense, net of deferrals, fell to $4.2 million, from $4.5 million.

FBL says a reviews of its assumptions led to a $300,000 charge.

Here’s what happened to first-year collected premiums from some of the products FBL sells:

• Fixed Annuities: Fell to $26 million, from $28 million.
• Indexed Annuities: Fell to $56 million, from $58 million.
• Universal Life: Fell to $7.1 million, from $7.3 million.
• Participating Whole Life: Increased to $3.2 million, from $2.4 million.
• Term Life: Held steady at  $2.5 million.

Lincoln National Corp.

The Radnor, Pennsylvania-based company is reporting $490 million in net income for the third quarter on $4.3 billion in revenue, compared with $418 million in net income on $3.5 billion in revenue for the third quarter of 2017.

The annuity operation is reporting $302 million in after-tax operating earnings on $1.1 billion in operating revenue, up from $277 million in earnings on $1.1 billion in operating revenue for the year-earlier quarter.

Annuity commissions incurred increased to $278 million, from $216 million.

Life earnings increased to $176 million on $1.8 billion in operating revenue, from $121 million on $1.6 billion in operating revenue.

Life insurance commissions incurred fell to $173 million, from $176 million.

Here’s what happened to sales of some of the products Lincoln offers:

• Variable Annuities With Guaranteed Living Benefits: Increased to $1.4 billion, from $959 million.
• Variable Annuities Without Guaranteed Living Benefits: Increased to $774 million, from $573 million.
• Fixed Annuities: Increased to $890 million, from $384 million.
• MoneyGuard: Fell to $53 million, from $65 million.
• Variable Universal Life: Increased to $62 million, from $45 million.
• Retirement Plan Services: Increased to $2 billion, from $672 million.
• Group Life: Increased to $69 million, from $33 million.
• Group Disability: Increased to $73 million, from $35 million.
• Group Dental: Fell to $16 million, from $26 million.

The percentage of group business that was employee-paid fell to 40%, from 44.7%.

— Read Ameriprise Increases Variable Annuity Sales 3%, on ThinkAdvisor.

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