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August 06, 2021 at 12:25 PM
What You Need to Know
- Primerica said “clients remain focused on the future and planning for retirement” amidst the pandemic.
- AIG reported $91 million in net income for the second quarter, marking a turnaround from the year earlier.
- Brighthouse Financial reported $10 million in net income, another turnaround as the pandemic eased this year.
Primerica says its customers are clinging to their term life coverage more tightly than usual.
Persistency is up, and “clients remain focused on the future and planning for retirement,” the Duluth, Georgia-based life insurer said in its earnings release for the second quarter, which ended June 30.
But the COVID-19 pandemic continues to push the term life death claim total to a level that’s higher than normal, the company said.
Primerica (PRI) is reporting $128 million in net income for the second quarter on $655 million in revenue, up from $102 million in net income on $525 million in revenue for the second quarter of 2020.
Here are how some of the company’s distribution performance numbers changed year-over year:
- Life-Licensed Sales Force: 132,041 (down from 134,157)
- Recruits: 89,285 (down from 133,123)
- Average Number of Policies Sold Per Rep Per Month: 21 (up from 0.18)
The number of term life insurance policies sold fell to 90,071 policies from 94,044 policies.
Spending on sales-based sales commissions increased to $105 million from $63 million.
Here’s a look at some of the life, health and annuity market players that posted earnings so far this week:
American International Group (AIG)
American International Group (AIG) is reporting $91 million in net income for the second quarter on $11 billion in revenue, compared with a $7.9 billion net loss on $9.4 billion in revenue for the second quarter of 2020.
The company’s life and retirement unit is reporting $941 million in adjusted pre-tax income on $4 billion in revenue, compared with $601 million in adjusted pre-tax income on $4.3 billion in revenue for the year-earlier quarter.
The individual retirement unit is reporting $1.1 billion in adjusted pre-tax income on $5 billion in revenue, up from $895 million in adjusted pre-tax income on $4.7 billion in revenue.
Here’s what AIG said happened to net flows of assets for several individual retirement products in the U.S. between the second quarter of 2020 and the latest quarter:
- Indexed Annuities: A $1.1 billion net inflow (up from a $439 million net inflow)
- Variable Annuities: A $33 net outflow (compared with a $400 million net outflow)
- Fixed Annuities: A $552 million net outflow (compared with a $723 million net outflow)
Brighthouse Financial (BHF)
Brighthouse Financial is reporting $10 million in net income for the second quarter on $1.7 billion in revenue, compared with a $2 billion net loss on negative $922 million in revenue for the second quarter of 2020.
The Charlotte, North Carolina-based life insurer says adjusted earnings less notable items, which exclude fluctuations in the estimated value of investments and derivatives, increased to $458 million from $39 million in the year-earlier quarter.
Sales of individual variable annuities increased to $2.1 billion in the latest quarter from $1.3 billion a year earlier. Sales of life insurance increased to $26 million from $12 million.
