A number of insurers have released their financial results for Q2 2011. The following is a compilation of their announcements:
American Financial Group reported net earnings attributable to shareholders of $55 million ($0.52 per share) for the 2011 second quarter, compared to $108 million ($0.97 per share) reported for the 2010 second quarter. Per-share results reflect the impact of share repurchases in 2011 and 2010. The 2011 results reflect lower earnings from the company’s core property/casualty operations, and a special charge of $38 million resulting from strengthening reserves for asbestos and other environmental exposures primarily within the P&C run-off operations. These results were partially offset by $12 million of realized gains. Net earnings for the first six months of 2011 were $138 million ($1.31 per share) compared to $214 million ($1.90 per share) for the same period a year ago.
Core net operating earnings were $81 million ($0.78 per share) for the 2011 second quarter, compared to $102 million ($0.91 per share) reported in the 2010 second quarter. Core net operating earnings for the first six months of 2011 were $167 million ($1.59 per share) compared to $205 million ($1.82 per share) for the same period a year ago.
Berkshire Hathaway reported operating earnings from the second quarter of 2011 of $2.7 million, compared to $3.1 million from the same period of 2010. Operating earnings for the first six months of 2011 were reported as $4.3 million, a decrease from the $5.3 million earned over the same period in 2010.
Net earnings were reported as $3.5 million from second quarter 2011, and $4.9 million from first half 2011, compared to $2.1 million reported in the second quarter of 2010 and $5.9 million reported in the first half of 2010.
EMC Insurance Group reported an operating loss of $1.05 per share for the second quarter ended June 30, 2011, compared to operating income of $0.29 per share for the second quarter of 2010. Operating loss for the six-month period ended June 30, 2011 was $1.06 per share, compared to operating income of $1.02 for the same period in 2010.
Net loss, including realized investment gains and losses, totaled $12,481,000 ($0.96 per share) for the second quarter of 2011 compared to net income of $3,298,000 ($0.25 per share) for the second quarter of 2010. Net loss for the six-month period ended June 30, 2011 was $7,260,000 ($0.56 per share) compared to net income of $13,177,000 ($1 per share) for the same period in 2010.
“There is no question that we are currently in a very active weather cycle, which has significantly affected our operations,” said Bruce Kelley, president and CEO. “Catastrophe losses for the second quarter totaled an unprecedented $41,065,000 ($2.06 per share after tax) and $50,469,000 ($2.53 per share after tax) year-to-date. Stated another way, second-quarter catastrophe losses accounted for 40.7 percentage points of our combined ratio, and year-to-date, that figure was 25.6 percentage points.”
Harleysville Group reported a diluted operating loss of $0.43 per share for the second quarter of 2011, compared to operating income of $0.61 per share in the second quarter of 2010. Catastrophe losses incurred during the second quarter of 2011 reduced operating income by $0.83 per share after taxes, compared to catastrophe losses of $0.19 per share in the second quarter of 2010. For the six-month periods, the company reported a diluted operating loss of $0.14 per share in 2011 and operating income of $0.89 per share in 2010. Catastrophe losses incurred during the first six months of 2011 reduced operating income by $1.04 per share after taxes, compared to catastrophe losses of $0.68 per share in the first six months of 2010.
“The weather in the second quarter truly was unprecedented, causing us to experience a record level of catastrophe storm activity and weather-related losses,” said Michael Browne, president and CEO. “Our results are not surprising when you consider the magnitude of the catastrophes that occurred across the country during the quarter, with the industry’s insured loss estimate for the quarter expected to be well in excess of $15 billion.”
Humana reported diluted earnings per common share (EPS) for the quarter ended June 30, 2011 of $2.71, compared to $2.00 per share for the quarter ended June 30, 2010. For the six months ended June 30, 2011 the company reported $4.57 in EPS compared to $3.52 for the six months ended June 30, 2010.
Consolidated revenues for second quarter ended June 30, 2011, were $9.28 billion, an increase of 8 percent from $8.59 billion for the second quarter of 2010, with total premiums and services revenue also up 8 percent compared to the prior year’s quarter. The year-over-year increase in premiums and services revenue primarily reflected an increase in the revenues in both the company’s retail and health and well-being services segments, partially offset by a decline in revenues in the company’s employer group segment.
Consolidated revenues rose 9 percent to $18.47 billion, for the first half of 2011, from $16.97 billion in the first half of 2010, with total premiums and services revenue also up 9 percent compared to the prior year’s period, driven primarily by the same factors as the second-quarter year-over-year increase.
Kingstone Companies reported its results for the period ended June 30, 2011. Second-quarter 2011 net income was $773,931, or $.20 per share, and net operating income was $714,555, or $.18 per share.
“In two years we’ve seen book value for KICO increase by 34.7 percent, from $11,398,321 to $15,350,437. This equates to a current book value per share for KICO of $4.00,” said Barry Goldstein, chairman and CEO. “Over this same two-year period, annualized direct written premiums have grown by 50 percent to $40,248,318 (for the six months ended June 30, 2011) from $26,765,078 (for the six months ended June 30, 2009). KICO has a return on average equity of 15.7 percent for the 12 months ended June 30, 2011, compared to 15.9 percent for the 12 months ended June 30, 2010.”
Investments in marketable securities increased 29.2 percent to $22.1 million from the prior year amount of $17.1 million. Annualized interest and dividend income at June 30, 2011 was $1.038 million, up 32.1 percent from $.786 million at June 30, 2010. The company reduced its exposure to municipal bonds from 40.9 percent at June 30, 2010 to 28.7 percent at June 30, 2011.
Marsh & McLennan Companies’s Consolidated revenue in the second quarter of 2011 was $2.9 billion, an increase of 12 percent from the second quarter of 2010, or 5 percent on an underlying basis. Underlying revenue measures the change in revenue before the impact of acquisitions and dispositions, using consistent currency exchange rates. Operating income rose to $465 million, compared with a loss in the prior year period. Adjusted operating income in the second quarter rose 17 percent to $462 million.
In the second quarter of 2011, net income rose 19 percent to $282 million, compared with $236 million last year. This includes income from discontinued operations, net of tax, of $3 million in the second quarter of 2011, compared with $271 million in the prior year period. Earnings per share increased 16 percent to $.50 from $.43. Income from continuing operations increased to $286 million, or $.50 per share, from a loss in the prior year period. Earnings per share on an adjusted basis, which excludes noteworthy items as presented in the attached supplemental schedules, increased 9 percent to $.50, compared with $.46.
National Planning Holdings booked record revenue of more than $405 million in the first half of 2011, an 18.3-percent increase over the first half of 2010. The network also generated more than $8.3 billion in gross product sales during the first six months of the year, representing a 15.3-percent increase over the prior year period.
During the first half of 2011, NPH continued to invest in new technologies that can support its advisers’ business development needs. For example, NPH recently signed an agreement with Erado to roll out social media capabilities to the network’s 3,600 affiliated representatives by the fall of 2011.
“NPH’s half-year results clearly demonstrate the network’s commitment to serving the evolving needs of advisers,” said Jim Livingston, president and CEO. “Our success is predicated on a firm-wide dedication to technology innovation, comprehensive product due diligence and corporate risk management, which allows our representatives to feel comfortable in both the product recommendations they make and the infrastructure in place to support their business needs.”
Presidential Life announced second-quarter 2011 net income was $13.8 million or $0.47 per share, compared with net income of $7.1 million or $0.24 per share for the comparable three-month period in 2010. Net income for the first six months of 2011 was $21.3 million or $0.72 per share, compared with a net income of $5.2 million or $0.18 per share for the comparable six-month period in 2010.
Total revenues in the second quarter of 2011 were $74.3 million, an increase of 5.5 percent or $3.9 million from $70.4 million in the second quarter of 2010. Total revenues for the first six months totaled $139.2 million, an increase of 6.7 percent or $8.8 million from $130.4 million for the comparable six-month period in 2010. These increases were largely attributable to net realized investment gains generated from our limited partnership portfolio in the first two quarters of 2011.
“Despite the continued uncertain economic environment, during the quarter A.M. Best Company upgraded Presidential Life Insurance Company to a B++ (Good) with a Stable Outlook,” said Donald Barnes, vice chairman of the board, CEO and president. “This upgrade acknowledged the company’s strong capital profile and positive operating results, giving recognition to our strategic growth initiatives currently underway.”
Principal Financial Group announced results for second quarter 2011. The company reported operating earnings of $237.3 million for second quarter 2011, compared to $190.4 million for second quarter 2010. Operating earnings per diluted share (EPS) were $0.73 for second quarter 2011, compared to $0.59 for second quarter 2010. The company reported net income available to common stockholders of $258.0 million, or $0.80 per diluted share for second quarter 2011, compared to $134.0 million, or $0.42 per diluted share for second quarter 2010. Operating revenues for second quarter 2011 were $2,149.0 million compared to $1,976.2 million for the same period last year.
“We saw the best quarter of net income since before the financial crisis. On a year-to-date basis, net income is up 40 percent, or $130 million,” said Terry Lillis, SVP and CFO. “Book value per share was another record this quarter and our excess capital position improved to $2.1 billion, even after buying back 7.7 million shares in the quarter. These metrics demonstrate our financial strength and flexibility, which will serve us well through the rest of the year and into 2012.”
Safety Insurance Group reported second-quarter 2011 results. Net income for the quarter ended June 30, 2011 was $4.1 million, or $0.27 per diluted share, compared to net income of $15.1 million, or $1.00 per diluted share, for the comparable 2010 period. Net income for the six months ended June 30, 2011 was $0.1 million, or $0.01 per diluted share, compared to $27.9 million, or $1.84 per diluted share, for the comparable 2010 period. Safety’s book value per share decreased to $42.56 at June 30, 2011 from $43.37 at Dec. 31, 2010. Safety paid $0.50 per share in dividends to investors during the quarter ended June 30, 2011 compared to $0.40 per share during the comparable 2010 period. Safety paid $1.80 per share in dividends to investors during the year ended Dec. 31, 2010.
Net investment income for the quarter ended June 30, 2011 decreased by $1.4 million, or 12.8 percent, to $9.5 million from $10.9 million for the comparable 2010 period. Net investment income for the six months ended June 30, 2011 decreased by $2.0 million, or 9.3 percent, to $19.6 million from $21.6 million for the comparable 2010 period.
State Auto Financial Corp. (STFC) reported a second-quarter 2011 net loss of $201.4 million, or $5.01 per diluted share, versus a net loss of $26.2 million, or $0.66 per diluted share, for the second quarter of 2010. Net loss from operations per diluted share for the second quarter 2011 was $5.11 versus a net loss from operations of $0.66 for the same 2010 period. The previously announced charge to establish a deferred tax asset valuation allowance in the amount of $115 million reduced STFC’s per share results by $2.86 for the second quarter and the first six months of 2011.
For the first six months of 2011, STFC had a net loss of $188.7 million, or $4.70 per diluted share, compared to a loss of $13.3 million, or $0.33 per diluted share, for same 2010 period.
“STFC’s second quarter loss was both unprecedented and unexpected. Prior to this year, our average five-year loss ratio for second-quarter catastrophes was 18 percent,” said STFC President and CEO Bob Restrepo. “This year, our second-quarter loss ratio included 44.3 points of catastrophe losses.”
Unum Group reported net income of $229.8 million ($0.75 per diluted common share) for the second quarter of 2011, compared to net income of $209.7 million ($0.63 per diluted common share) for the second quarter of 2010.
Included in the results for the second quarter of 2011 are net realized after-tax investment losses of $2.2 million (less than $0.01 per diluted common share), compared to net realized after-tax investment losses of $18.9 million ($0.06 per diluted common share) in the second quarter of 2010. Net realized after-tax investment losses for the second quarter of 2011 include an after-tax loss of $3.1 million resulting from changes in the fair value of an embedded derivative in a modified coinsurance contract, compared to an after-tax loss of $15.3 million in the second quarter of 2010.
Adjusting for these items, income on an after-tax basis was $232.0 million ($0.75 per diluted common share) in the second quarter of 2011, compared to $228.6 million ($0.69 per diluted common share) in the second quarter of 2010.
