A number of insurers have released financial results for Q3 2011. The following is a compilation of their announcements:
For the third quarter 2011, Allianz reported revenues amounting to $32.7 billion, an operating profit of $2.6 billion, and a net income of $349 million, impacted by losses from financial market turmoil. The company reported a solvency ratio of 179 percent.
Allianz reported significant investment losses of $3.5 billion during the third quarter of 2011. The operating impact of these losses of $1.8 billion in life/health business led to a decrease of approximately $303 million in the net investment result. Non-operating losses totaled $1.7 billion across the segments, $1.1 billion of which were reflected in its corporate and other segment.
Losses from our corporate investments in financial sector assets, like our participations in Commerzbank, The Hartford, Unicredit, China Pacific Insurance Group and Banco Popular, were a key driver of the non-operating result. In total, these losses were approximately $1.1 billion for the quarter.
American Financial Group Inc. reported net earnings attributable to shareholders of $96 million ($0.94 per share) for the 2011 third quarter, compared to $132 million ($1.21 per share) for the 2010 third quarter. Per share results reflect the impact of share repurchases in 2011 and 2010. The 2011 results include realized gains of $5 million compared to realized gains of $15 million in the 2010 period. Net earnings attributable to shareholders for the nine-month period were $234 million ($2.24 per share), compared with $346 million ($3.11 per share) in the comparable 2010 period. Nine month results in 2011 include realized gains of $14 million and a special charge of $38 million resulting from a second quarter reserve strengthening related to the Company's asbestos and other environmental exposures. The comparable period in 2010 includes $24 million in realized gains.
Core net operating earnings were $91 million ($0.90 per share) for the 2011 third quarter, compared to $117 million ($1.07 per share) reported in the 2010 third quarter. Core net operating earnings for the first nine months of 2011 were $258 million ($2.48 per share) compared to $322 million ($2.89 per share) for the same period a year ago. Lower underwriting profit and lower investment income in our specialty property/casualty insurance operations, partially offset by increased earnings in our annuity and supplemental operations in the first nine months of 2011, contributed to these results. Nine-month annualized core operating return on equity was 9 percent.
During the third quarter of 2011, AFG repurchased 2.6 million shares of common stock at an average price per share of $32.25. Repurchases during the first nine months of 2011 totaled 7.8 million shares at an average price per share of $33.70.
Third quarter 2011 operating income was $38.3 million, or $0.21 per diluted share, bringing the nine-month 2011 operating income to $430.9 million, or $2.31 per diluted share. Third-quarter 2011 net income was $761.2 million, or $4.13 per diluted share, driven primarily by net unrealized gains on credit derivatives and financial guaranty variable interest entities, totaling $749.4 million. Nine-month 2011 net income was $859.2 million, or $4.61 per share. Operating shareholders’ equity per share increased 8.4 percent and GAAP book value per share increased 28.7 percent since year-end 2010. Adjusted book value1 per share of $48.87 remained steady compared with year-end 2010.
The company reported third-quarter 2011 operating income, a non-GAAP financial measure, of $38.3 million, or $0.21 per diluted share, which includes the effect of lower risk-free rates used to discount expected losses of approximately $120 million in pretax loss expense. The effect of lower discount rates is not indicative of additional credit impairment in the period. Operating income for the nine months ended 2011 was $430.9 million, or $2.31 per diluted share. The comparable prior year operating income was $222.6 million, or $1.19 per diluted share for the three months ended Sept. 30, 2010, and $511.4 million, or $2.70 per diluted share, for the nine months ended Sept. 30, 2010.
Cincinnati announced for the third quarter of 2011: $19 million, or 12 cents per share, of net income compared with $156 million, or 95 cents net income per share, in the 2010 third quarter. Operating income of $20 million, or 13 cents per share, for third quarter 2011 compared with operating income of $56 million, or 34 cents, from a year ago.
$137 million decrease in third quarter 2011 net income driven by the after-tax effects of a $101 million decrease in net realized investment gains and a $34 million decrease in the contribution from property/casualty underwriting operations. That contribution reflected previously announced third-quarter natural catastrophe losses totaling $60 million after taxes, up $42 million compared with the same period of 2010.
110.6 percent third quarter 2011 property/casualty combined ratio, up from 103.9 percent from one year ago. Seven-percent growth in property/casualty net written premiums, up in all three of our property/casualty segments. $115 million third-quarter 2011 property/casualty new business written premiums, up 6 percent or $6 million, driven by a $10 million increase from agencies appointed since the beginning of 2010.
Imperial Holdings reported a total loss of $1.8 million for the third quarter of 2011, compared to third quarter 2010 total income of $20.0 million. In the life finance segment, total income decreased by $22.3 million during the third quarter to a total loss of $5.5 million, compared to total income of $16.8 million for the same period in 2010. Loss before income taxes for the three months ended Sept. 30, 2011 was approximately $20.4 million compared to a loss before income taxes of $6.8 million for the three months ended Sept. 30, 2010, an increase of $13.6 million.
Net loss for the three months ended Sept. 30, 2011, was $12.6 million as compared to a net loss of $6.8 million for the three months ended Sept. 30, 2010. Fully diluted earnings per share for the third quarter was a loss of $(0.59) compared to a loss per share of $(1.90) for the same period last year.
For the first nine months of 2011, the company reported total income of $52.3 million, compared to total income of $60.4 million for the same period in 2010. Income before taxes was $836,000 for the first nine months of 2011 compared to a loss of $16.4 million during the same period last year, an increase of $17.2 million. Net loss was $516,000 for the first nine months of 2011 compared to a net loss of $16.4 million for the same period in 2010, an increase of $15.9 million. Total expenses were $51.5 million for the period compared to total expenses of $76.8 million incurred during the nine months ended Sept. 30, 2010, a reduction of $25.3 million.
Nationwide reported $431 million in net operating income through the end of the third quarter of 2011. Total operating revenue through the first three quarters was $15.6 billion, ahead of the same period in 2010. The insurer has also recorded $2.2 billion in weather-related claims so far in 2011.
In the first nine months of 2011, Nationwide paid more than $10.1 billion to its customers and business partners in the form of property/casualty claims, life insurance and other benefits. Nationwide ended the third quarter with total assets of $149.6 billion, compared to $148.7 billion at the end of last year.
The property/casualty business reported a net operating loss of $209 million through the end of September, compared to a net operating income of $623 million through the same period in 2010. Severe weather losses included $290 million related to Hurricane Irene, driving operating losses.
Direct written premium was up slightly at $11.2 billion, compared to $11.1 billion during the same period in 2010.
Net investment income was $2.4 billion through the third quarter of 2011, up from $2.2 billion in 2010. General account investments totaled $68.4 billion at the end of the third quarter, up from $66.1 billion at the end of 2010. A decline in interest rates resulted in an increase in the fair value of fixed maturity investments.
New York Life Insurance Company announced third-quarter gains in sales of life insurance, income annuities and mutual funds, as well as an increase in field force new hires in the first nine months of 2011.
Individual life insurance sales increased 10 percent through September compared with the first nine months of 2010. This growth is being driven by agents, with life insurance sales through the company’s national field force up 11 percent over the same 2010 period, the company said. New York Life’s Custom Whole Life product, an form of whole life designed to enable consumers to choose how long they pay premiums, continues as the most popular whole life product with a sales increase of 21 percent over the same period last year.
"With a continued leading 11.9-percent life insurance market share, and solid growth across product lines, New York Life’s 11,900 agents across the country are meeting the needs of individuals who have been under the pressure of three years of a rocky economy,” said Mark Pfaff, EVP in charge of U.S. Life and Agency.
New York Life’s fixed immediate annuities sales increased 23 percent over the same period last year. Our new Guaranteed Future Income Annuity contributed to the strong sales growth with sales of $100 million to date since its July 2011 launch. Sales of New York Life’s affiliated mutual funds (The MainStay Funds) are up 79 percent, totaling more than $14 billion in the first nine months of the year, with strong performances from third-party channels accounting for more than $11 billion of the total, the company said. And, recruitment of the company’s field force is up 4 percent for the first nine months of 2011 compared to the same period in 2010.
PartnerRe Ltd. reported net income of $180.1 million, or $2.43 per share on a fully diluted basis, for the third quarter of 2011. This net income includes net after-tax realized and unrealized gains on investments of $6.2 million, or $0.09 per share. Net income for the third quarter of 2010 was $524.9 million, or $6.76 per share on a fully diluted basis, including net after-tax realized and unrealized gains on investments of $233.0 million, or $3.05 per share. The company recorded operating earnings of $164.5 million, or $2.41 per share on a fully diluted basis, for the third quarter of 2011. This compares to operating earnings of $301.6 million, or $3.95 per share, for the third quarter of 2010.
Net loss for the first nine months of 2011 was $502.6 million, or $7.88 per share. This net loss includes net after-tax realized and unrealized losses on investments of $41.3 million, or $0.61 per share. Net income for the first nine months of 2010 was $795.5 million, or $9.68 per share. Operating loss for the first nine months of 2011 was $503.9 million, or $7.43 per share on a fully diluted basis. This compares to operating earnings of $393.0 million, or $4.94 per share, for the first nine months of 2010.
For the third quarter, net premiums written were up 9 percent, or 2 percent on a constant foreign exchange basis, to $1.1 billion primarily related to new business and increased treaty participations within the Global (Non-U.S.) Specialty sub-segment, increased agricultural premiums within the North America sub-segment and increased premiums in our Life segment. For the third quarter, net investment income was flat at $164 million primarily reflecting lower reinvestment rates, which was partially offset by the positive impact of foreign exchange of 3 percent. For the first nine months of 2011, net investment income was down 7 percent to $474 million primarily due to lower reinvestment rates.
Penn Millers Holding Corp. reported, for the three months ended Sept. 30, 2011, a net loss of $2.8 million, or $0.62 per diluted share, compared to a net loss of $3.2 million, or $0.71 per diluted share for the third quarter of 2010. For the nine months ended Sept. 30, 2011, Penn Millers reported a net loss of $5.3 million, or $1.18 per diluted share, compared to a net loss of $4.7 million, or $1.02 per diluted share for the nine months ended Sept. 30, 2010.
Penn Millers’ combined ratio for the third quarter of 2011 was 120.3 percent, compared to 114.4 percent for the third quarter of 2010. On a year-to-date basis, the Company’s combined ratio was 119.4 percent in 2011 and 119.3 percent in 2010. Total consolidated revenues for the third quarter of 2011 were $19.2 million, flat compared to $19.2 million for the same quarter in 2010. For the nine-month period, total consolidated revenues were $56.8 million in 2011, compared to $57.8 million in 2010.
Net premiums written for the third quarter of 2011 were $1.1 million higher than the third quarter of 2010. Realized gains were $0.5 million lower in the 2011 third quarter compared to 2010.
Penn Millers was adversely impacted by catastrophe losses in the third quarter of 2011 that accounted for approximately 19 loss ratio points of its 86-percent third-quarter loss ratio. Hurricane Irene contributed approximately $2.4 million, or 13.3 loss ratio points, to the total catastrophe losses, with the remainder mostly attributable to various flooding, hail and wind events in the Midwest. In addition to the third quarter catastrophe losses, other weather-related losses were $3.5 million, or approximately 20 loss ratio points.
Validus Holdings Ltd. reported an available net income of $56.5 million, or $0.54 per diluted common share for the three months ended Sept. 30, 2011, compared to $238.5 million, or $2.08 per diluted common share, for the three months ended Sept. 30, 2010. Net (loss) attributable to Validus for the nine months ended Sept. 30, 2011 was ($6.0) million, or ($0.12) per diluted common share, compared with net income available of $299.9 million, or $2.42 per diluted common share, for the nine months ended Sept. 30, 2010.
Net operating income available to Validus for the three months ended Sept. 30, 2011 was $112.6 million, or $1.09 per diluted common share, compared with $173 million, or $1.51 per diluted common share, for the three months ended Sept. 30, 2010.
Gross premiums written for the three months ended Sept. 30, 2011 were $391.1 million compared to $344.0 million for the three months ended Sept. 30, 2010, an increase of $47.1 million, or 13.7 percent. Net premiums earned for the three months ended Sept. 30, 2011 were $458.6 million compared to $432.7 million for the three months ended Sept. 30, 2010, an increase of $26.0 million, or 6.0 percent.
The company reported a combined ratio of 75.6 percent, which included $61.1 million of favorable prior accident year loss reserve development, benefiting the loss ratio by 13.3 percentage points. For three months ended Sept. 30, 2011, the company incurred losses and loss expenses of $51.9 million from notable loss events, which represented 11.3 percentage points of the loss ratio.
