Athene Holding Ltd. has joined the list of annuity issuers with a big gap between adjusted operating income and net income for the first quarter.
The Pembroke, Bermuda-based life insurer is reporting a $1.1 billion net loss for the quarter on negative $1.5 billion in revenue, compared with $708 million in net income on $5 billion in revenue for the first quarter of 2019.
Results for the latest quarter include $3.6 billion in losses on the value of investments.
The company’s adjusted operating loss for the first quarter was $65 million, compared with adjusted operating income of $287 million for the year-earlier quarter.
Jim Belardi, Athene’s chief execuive officer, said, during a conference call with securities analysts, that the company did well, overall; has about $5 billion in cash, and about $2 billion in other forms of liquidity; and hopes to increased liquidity to $10 billion in the next two months.
“Our significant pool of liquidity is supplemented further by a $33 billion portfolio of liquid public corporates,” Belardi said.
Bill Wheeler, Athene’s president, said he believes Athene will be in a position to increase its share of the annuity market.
“First, the principal protection features in our core products have become increasingly valuable to consumers,” Wheeler said. “Second, competitors who aren’t as well capitalized, or who’ve been mispricing product in the pursuit of market share gains, will likely be forced to pull back meaningfully.”
The managers of Athene (Stock symbol: ATH) built the company into a powerhouse quickly by acquiring large blocks of business from President Life, Aviva USA, Voya and other companies.
In other earning news:
Ameriprise Financial Inc., Minneapolis (Stock symbol: AMP)
Ameriprise is reporting $2 billion in net income for the first quarter on $3 billion in revenue, compared with $395 million in net income on $3.1 billion in revenue for the first quarter of 2019.
The annuities unit is reporting $95 million in pre-tax adjusted operating earnings on $589 million in adjusted operating revenue, compared with $128 million in operating earnings on $604 million in operating revenue for the year-earlier quarter.
The introduction of a structured variable annuity helped increase variable annuity sales 24%, to $1.1 billion, the company said.
Ameriprise described its new fixed annuity sales as being limited.
The protection unit, which sells life insurance, is reporting $72 million in pre-tax adjusted operating earnings on $257 million in adjusted operating revenue, compared with $74 million in operating earnings on $262 million in operating revenue for the year-earlier quarter.
Here’s what happened to cash sales of three types of protection products:
- Variable universal life and universal life: $56 million (flat)
- Term and whole life: $2 million (flat)
- Disability insurance: $1 million (flat)
Independence Holding Company, Stamford, Connecticut (Stock symbol: IHC)
IHC is reporting $4.3 million in net income for the first quarter on $104 million in revenue, compared with $8.7 million in net income on $94 million in revenue for the first quarter of 2019.
Roy T.K. Thung, IHC’s chief executive officer, said in a comment on IHC’s results that the company is continuing to develop a Medicare supplement insurance product, and to develop a distribution network for products aimed at consumers over ge 65.
The company hopes to have 150 call center agents and 275 licensed career agents in its senor market sales force by the start of the Medicare Advantage plan annual enrollment period.
Triple-S Management Corp., San Juan, Puerto Rico (Stock symbol: GTS)
Triple-S — the Blue Cross and Blue Shield carrier for Puerto Rico, the U.S. Virgin Islands, the British Virgin Islands, Costa Rica and Anguilla — is reporting a $26 million net loss for the first quarter on $843 million in revenue, compared with $35 million in net income on $786 million in revenue for the first quarter of 2019.
Results for the latest quarter include a $57 million loss on the market value of investments the company still has in its portfolio.
The company ended the quarter providing or administering medical coverage for about 926,000 people, up from about 921,000 a year earlier.
Here’s what happened to enrollment for some types of coverage between the first quarter of 2019 and the latest quarter:
- Medicare plans: 135,710 (up from 128,090)
- Medicaid plans: 355,512 (down from 355,694)
- Commercial plans: 435,013 (down from 437,200)
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