Most life insurers reported losses during the second quarter, but net income was up at a life reinsurer, and specialty insurers and health insurers also posted solid profits.
MetLife Inc., New York
2 Q 2009 Results
NET INCOME: $1.4 billion loss
NET INVESTMENT CHANGE: $3.8 billion loss
REVENUE: $8.3 billion
2 Q 2008 Results
NET INCOME: $915 million
NET INVESTMENT CHANGE: $357 million loss
REVENUE: $12 billion
- "The net loss reflects net realized gains and losses, including derivative losses of $1.8 billion, after income tax, of which approximately $1 billion, after income tax, was due to the improvement in MetLife's credit spread in the quarter," the company says.
- Premiums, fees and other types of ordinary revenue increased 6%, to $8.4 billion.
- U.S. annuity deposits increased to $5.5 billion, up 43% from the total the company recorded a year earlier.
- Pension closeout and structured settlement sales were strong.
Hartford Financial Services Group Inc., Hartford
2 Q 2009 Results
NET INCOME: $15 million loss
NET REALIZED CAPITAL LOSSES: $681 million loss
REVENUE: $7.6 billion
2 Q 2008 Results
NET INCOME: $543 million
NET REALIZED CAPITAL LOSSES: $282 million loss
REVENUE: $7.5 billion
- "We have taken actions which will reduce our [life businesses] run-rate of expenses by approximately 18% by year end," Hartford Chairman Ramani Ayer reports. "In addition, we are working toward the anticipated fall 2009 launch of our new U.S. variable product, and we are repositioning the life company for the future."
- Life operations assets under management declined 17% to $302 billion, mainly due to a drop in stock prices.
- Life net income fell to $176 million, from $334 million.
- New group benefits sales fell 34%, to $89 million.
- Hartford spent $35 million on severance benefits during the quarter.
Lincoln National Corp., Radnor, Pa.
2 Q 2009 Results
NET INCOME: $161 million loss
EXCLUDED REALIZED LOSS: $330 million loss
REVENUE: $2 billion
2 Q 2008 Results
NET INCOME: $125 million
EXCLUDED REALIZED LOSS: $113 million loss
REVENUE: $2.5 billion
- Indexed annuities and term life sold well.
- Net unrealized losses on available-for-sale securities shrank 40% after tax, to $1.6 billion.
- Variable annuity deposits were down year over year but were higher than they were during the first quarter. Fixed and indexed annuity deposits totaled $900 million, up 83% from the total for the second quarter of 2008.
Genworth Financial Inc., Richmond, Va.
2 Q 2009 Results
NET INCOME: $50 million loss
NET REALIZED INVESTMENT CHANGE: $53 million loss
REVENUE: $2.5 billion
2 Q 2008 Results
NET INCOME: $109 million loss
NET REALIZED INVESTMENT CHANGE: $518 million loss
REVENUE: $2.4 billion
- "Second quarter included $75 million of gains on derivatives used to mitigate risk associated with our statutory capital position, gains on embedded derivatives associated with guaranteed minimum withdrawal benefit variable annuities and a change in market value related to credit derivatives," Genworth says.
- New individual long term care insurance sales fell to $44 million, from $66 million in the second quarter of 2008, "primarily from an overall decline in the LTC market size," Genworth says. But LTC earnings increased to $43 million, from $34 million, thanks to a drop in expenses and the effects of previously announced price increased imposed on blocks of in-force LTC business.
American National Insurance Company, Galveston, Texas
2 Q 2009 Results
NET INCOME: $4.4 million loss
NET REALIZED INVESTMENT CHANGE: $5.7 million loss
REVENUE: $728 million
2 Q 2008 Results
NET INCOME: $2.9 million loss
NET REALIZED INVESTMENT CHANGE: $2.8 million loss
REVENUE: $734 million
- The loss was the result of the effects of bad weather on the company's property-casualty insurance operation.
Kansas City Life Insurance Company, Kansas City, Mo.
2 Q 2009 Results
NET INCOME: $8 million
NET REALIZED INVESTMENT IMPAIRMENT: $4 million
REVENUE: $56 million
2 Q 2008 Results
NET INCOME: $1.7 million
NET REALIZED INVESTMENT IMPAIRMENT: $10 million
REVENUE: $58 million
- New individual life sales increased 5%, to $3.4 million.
- Sales of immediate annuities fell 5%, to $1.6 million.
Reinsurance Group of American Inc., Chesterfield, Mo.
2 Q 2009 Results
NET INCOME: $153 million
NET REALIZED INVESTMENT CHANGE: $78 million gain
REVENUE: $1.8 billion
2 Q 2008 Results
NET INCOME: $111 million
NET REALIZED INVESTMENT CHANGE: $7.1 million loss
REVENUE: $1.6 billion
- "Our experience during 2009 continues to mirror that of 2008 as adverse mortality experience during the first quarter was again followed by strong results in the second quarter," RGA President A. Greig Woodring says in a statement. "We expect periods of mortality variations to offset over longer-term horizons."
Aflac Inc., Columbus, Ga.
2 Q 2009 Results
NET INCOME: $314 million
REVENUE: $4.3 billion
2 Q 2008 Results
NET INCOME: $483 million
REVENUE: $4.3 billion
- Operating earnings per diluted share increased by 5 cents during the quarter thanks to a stronger yen-dollar exchange rate.
- The weak economy cut U.S. new sales 11%, to $341 million.
- Aflac says it plans to acquire Continental American Insurance Company, Columbia, S.C., for $100 million.
Assurant Inc., New York
2 Q 2009 Results
NET INCOME: $193 million
NET REALIZED LOSSES ON INVESTMENTS: $6.1 million
REVENUE: $2.3 billion
2 Q 2008 Results
NET INCOME: $190 million
NET REALIZED LOSSES ON INVESTMENTS: $35 million
REVENUE: $2.2 billion
- Assurant Health, the health insurance arm of Assurant, had $4.3 million in net operating income, down 93% from $65 million for the second quarter of 2008. "Clearly, we are disappointed with the operating results at Assurant Health and are taking steps to correct the situation," says Assurant President Robert Pollock.
Torchmark Corp., McKinney, Texas
2 Q 2009 Results
NET INCOME: $114 million
REALIZED LOSSES ON INVESTMENTS: $12 million
REVENUE: $820 million
2 Q 2008 Results
NET INCOME: $134 million
REALIZED LOSSES ON INVESTMENTS: $5 million
REVENUE: $860 million
- Life insurance accounted for 70% of underwriting margin and 62% of total premium revenue, while health insurance accounted for 24% of underwriting margin and 31% of total premium revenue.
WellPoint Inc., Indianapolis
2 Q 2009 Results
NET INCOME: $694 million
NET REALIZED INVESTMENT CHANGE: $16 million gain
HEALTH PLAN MEMBERS: 34 million
REVENUE: $15 billion
2 Q 2008 Results
NET INCOME: $751 million
NET REALIZED INVESTMENT CHANGE: $93 million gain
HEALTH PLAN MEMBERS: 35 million
REVENUE: $16 billion
- Changes in provider advances, decreased payments for taxes and incentive compensation, and increased operating earnings led to an increase in operating cash flows.
- WellPoint bought back 9.8 million of its own shares of common stock for $437 million.
Aetna Inc., Hartford
2 Q 2009 Results
NET INCOME: $347 million
NET REALIZED INVESTMENT CHANGE: $13 million gain
HEALTH PLAN MEMBERS: 19 million
REVENUE: $8.7 billion
2 Q 2008 Results
NET INCOME: $481 million
NET REALIZED INVESTMENT CHANGE: $22 million loss
HEALTH PLAN MEMBERS: 18 million
REVENUE: $7.9 billion
- Aetna Chairman Ronald Williams cited increasing medical costs as the reason for lower-than-expected growth. "We continue to see upward pressure on medical costs beyond what we projected in early June, which we believe is driven in part by changing provider behavior in the face of a deep recession," Williams said. "We did not fully capture the impact of these forces in our 2009 pricing. This is disappointing, but it can be fixed."
CIGNA Corp., Philadelphia
2 Q 2009 Results
NET INCOME: $435 million
HEALTH PLAN MEMBERS: 11 million
REVENUE: $4.5 billion
2 Q 2008 Results
NET INCOME: $272 million
HEALTH PLAN MEMBERS: 12 million
REVENUE: $4.9 billion
- A decline in medical membership, partially offset by rate increases, led to a 7% decrease in premiums and fees.
- Disability management programs performed well.
Coventry Health Care Inc., Bethesda, Md.
2 Q 2009 Results
NET INCOME: $18 million
HEALTH PLAN MEMBERS: 5.2 million
REVENUE: $3.5 billion
2 Q 2008 Results
NET INCOME: $83 million
HEALTH PLAN MEMBERS: 4.8 million
REVENUE: $2.8 billion
- A writedown of the value of a unit that is now on the block, First Health, caused most of the drop in earnings.
WellCare Health Plans Inc., Tampa, Fla.
2 Q 2009 Results
NET INCOME: $37 million
HEALTH PLAN MEMBERS: 2.4 million
REVENUE: $1.8 billion
2 Q 2008 Results
NET INCOME: $11 million
HEALTH PLAN MEMBERS: 2.5 million
REVENUE: $1.6 billion
- An increase in Medicaid enrollment was offset by a decrease in Medicare enrollment, leading to the decrease in overall enrollment.
Centene Corp., St. Louis
2 Q 2009 Results
NET INCOME: $20 million
HEALTH PLAN MEMBERS: 1.4 million
REVENUE: $1 billion
2 Q 2008 Results
NET INCOME: $18 million
HEALTH PLAN MEMBERS: 1.2 million
REVENUE: $824 million
- Centene specializes in managing government program health plans, such as Medicaid and Children's Health Insurance Program plans.
- The start of an Arizona acute care contract helped increase enrollment and revenue, Centene says.
Universal American Corp., Rye Brook, N.Y.
2 Q 2009 Results
NET INCOME: $4.9 million
REVENUE: $1.2 billion
2 Q 2008 Results
NET INCOME: $28 million
REVENUE: $1.2 billion
- Medicare Part D has increased, and benefit and expense ratios have been lower than they were a year ago.
EHealth Inc., Mountain View, Calif.
2 Q 2009 Results
NET INCOME: $4 million
REVENUE: $33 million
2 Q 2008 Results
NET INCOME: $4.2 million
REVENUE: $28 million
- The number of total approved members increased to 135,800, from 132,600.
- Revenue per estimated member held steady at about $48.
- The company ended the quarter with $160 million in cash, cash equivalents and short-term marketable securities, up from $151 million at the end of 2008.
InsWeb Corp., Sacramento, Calif.
2 Q 2009 Results
NET INCOME: $595,000 loss
REVENUE: $8 million
2 Q 2008 Results
NET INCOME: $977,000 loss
REVENUE: $8.8 billion
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