Investment gains and stronger U.S. group disability results helped Unum Group Corp. increase profits during the second quarter.
Here is a summary of the latest insurance industry earnings news:
Unum Group Corp., Chattanooga, Tenn.
2 Q 2008 Results
NET INCOME: $240 million
REVENUE: $2.8 billion
NET REALIZED CAPITAL CHANGE: $26 million gain
2 Q 2007 Results
NET INCOME: $154 million
REVENUE: $2.7 billion
NET REALIZED CAPITAL CHANGE: $10 million gain
- Results include a $16 million after-tax net gain "resulting from changes in the fair value of embedded derivatives associated with certain modified coinsurance arrangements," Unum says.
- Unum US is reporting $176 million in operating income, up from $92 million in operating income for the second quarter of 2007.
- U.S. group disability operating income increased to $46 million, up from an operating loss of $15 million. Unum notes that, excluding special charges, U.S. group disability operations would have reported $51 million in operating income for the second quarter of 2007. But the ratio of benefits costs to premiums fell to 90.5%, from 92.7%, Unum says.
- The Colonial Life worksite sales unit increased operating income 5.1%, to $68 million, and sales 3.3%, to $81 million. The number of new accounts increased 13%, but the dollar value of growth was slow because the average new case size declined, Unum says.
Prudential Financial Inc., Newark, N.J.
2 Q 2008 Results
NET INCOME: $590 million
REVENUE: $7.7 billion
REALIZED INVESTMENT CHANGE: $486 million loss
FINANCIAL SERVICES NET INCOME: $575 million
2 Q 2007 Results
NET INCOME: $846 million
REVENUE: $8.4 billion
REALIZED INVESTMENT CHANGE: $34 million gain
FINANCIAL SERVICES NET INCOME: $835 million
- Financial services unit results, which excludes results from Prudential's closed-block business, include $123 million in losses on trading account assets supporting insurance liabilities, compared with $108 million in trading account asset losses for the second quarter of 2007.
- Individual life sales increased to $132 million, from $121 million.
- Net annuity sales increased to $518 million, from $464 million.
- Annualized premiums from new group disability cases fell to $17 million, from $26 million, but group life sales increased to $30 million, from $26 million.
American Equity Investment Life Holding Company, West Des Moines, Iowa
2 Q 2008 Results
NET INCOME: $4.7 million
REVENUE: $113 million
NET INVESTMENT INCOME: $202 million
REALIZED INVESTMENT CHANGE: $282 million loss
DERIVATIVES FAIR VALUE CHANGE: $73 million loss
2 Q 2007 Results
NET INCOME: $21 million
REVENUE: $289 million
NET INVESTMENT INCOME: $176 million
REALIZED INVESTMENT CHANGE: $282 million loss
DERIVATIVES FAIR VALUE CHANGE: $99 million gain
- Annuity sales increased 4%, to $648 million
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