A number of insurers have released financial results for Q1 2012. The following is a compilation of their announcements. To read last week's roundup, click here.
EMC reported net income of $19.224 million for Q1 2012, compared with $5.740 million for the same quarter last year. Premiums earned increased 14 percent to $109.760 million from $96.287 million in Q1 2011. Property/casualty reported a 10-percent increase in premiums earned; reinsurance reported a 30.3-percent increase.
“The company experienced another strong quarter,” said Bruce Kelley, president and CEO. “Our property and casualty insurance segment and our reinsurance segment both benefited from increases in premium income and favorable reserve development.
“The increase in premium income in the property and casualty insurance segment is the result of several factors, including rate level increases in all lines of business, growth in insured exposures, and strong retention of policies,” Kelley said. “The large increase in the reinsurance segment was primarily driven by Employers Mutual’s participation in a new offshore energy and liability proportional account… expected to generate between $17 [million] and $21 million of annual premiums, which will more than offset the loss of a large account in the mutual reinsurance bureau book of business that was cancelled in the first quarter of 2012 due to poor experience.”
Investment income decreased 7.6 percent to $11,157,000 from $12,078,000 in Q1 2011. “Investment income continues to decline as a result of the low interest rate environment that has persisted for the past several years,” Kelley said. Catastrophe losses for the quarter were $9.7 million, or $0.49 per share after tax, compared with $9.4 million, or $0.47 per share after tax, in the same quarter last year.
Employers Holdings reported a Q1 2012 net income of $6.2 million, or $0.19 per diluted share, compared with $8.3 million, or $0.21 per diluted share, for the same quarter last year.
Net written premiums increased 38.8 percent to $140.4 million for the quarter, compared with $101.1 million in 2011. Net premiums earned were $109.9 million, an increase of $27.5 million or 33.3 percent from Q1 2011, primarily due to policy count growth of 38.7 percent year-over-year at the quarter’s end.
Net investment income was $18.4 million, a decrease from $20.5 million for the same quarter last year. Realized gains on investments were $1.8 million compared with $0.2 million for Q1 2011; the increase was largely attributable to the sale of securities associated with the completion of the rebalancing of the portfolio begun in Q4 2011.
“Net income excluding the LPT and the DAC accounting change, was higher than last year's first quarter with adjusted earnings per diluted share seven cents higher than the same period last year,” said Douglas D. Dirks, president and CEO. “Our combined ratio, excluding the LPT and the DAC accounting change, improved more than five percentage points as cost controls and increases in net premiums earned drove the underwriting and other operating expense ratio down.”
For Q1 2012, Jackson generated total sales and deposits of $5.9 billion, a 3-percent increase from the same quarter last year. The company is an indirect wholly owned subsidiary of the United Kingdom’s Prudential plc.
Jackson is focusing on profitable sales rather than on growth for growth’s sake, said Mike Wells, Jackson’s president and CEO. "Our discipline served us well throughout past business cycles and will continue to be the foundation of our success moving forward."
Jackson sold nearly $4.4 billion in variable annuities for the quarter, a 4-percent decrease from the same quarter last year. Curian Capital LLC, Jackson’s retail asset management subsidiary collected $713 million in deposits, a 13 percent increase over the same quarter last year. At the end of Q1 2012, Curian’s assets under management were $8.2 billion, up from $7.3 billion at the end of 2011.
Sales of traditional deferred fixed annuities rose 27 percent year-over-year to $255 million. FIA sales grew 20 percent to $392 million compared with the same quarter last year.
"Jackson has a diversified offering to meet the changing demands of advisers and their clients," said Clifford Jack, executive vice president and head of retail for Jackson. "Jackson’s success is not dependent upon any one product line, but on the company’s ability to provide innovative solutions to satisfy the investment needs of its customers.”
During full-year 2011, Jackson ranked third in total annuity sales with a market share of 8.2 percent and third in variable annuity sales with a market share of 11.0 percent. The company also ranked eighth in fixed index annuity sales with a market share of 4.6 percent, and 13th in traditional fixed annuity sales with a market share of 2.1 percent.
Nationwide reported Q1 net operating income of $274 million, a 41-percent decrease compared with $467 million for the same quarter last year. The results reflect an increase in property & casualty premiums, offset by claims payments and a one-time charge related to customer acquisition costs. Total operating revenue was $5.233 billion for the quarter, a slight increase compared with $5.187 billion for the same quarter last year.
Premiums and policy changes were $4.2 billion for the quarter, an increase compared with $4.079 for the same quarter last year. Total policyholder equity increased to $17.0 billion compared to $16.2 billion for the same quarter last year.
“Coming off the worst weather year in the history of the company, Nationwide continues to be well positioned to serve our customers and to grow,” said Steve Rasmussen, CEO. “Our financial strength continues to be validated by rating agencies, our customer service has been recognized as industry-leading and our associates remain focused on providing great service to our customers.”
Presidential Life Corporation reported Q1 2012 net income of $3.8 million, or $0.13 per share, a 49 percent decrease compared with net income of $7.5 million, or $0.25 per share, for the same quarter last year. The decrease is principally due to a decrease in net realized investment gains of $2.4 million, an increase in other-than-temporary impairment (“OTTI”) losses of $3.1 million, and a decrease in equity in earnings on limited partnerships of $1.6 million.
Total revenue was $56.7 million, a decrease of 12.7 percent from $64.9 million Q1 2011. Total annuity sales were $21.7 million for the quarter, an increase of $8 million or 58 percent compared to Q1 2011. Total Q1 2012 insurance revenues increased to $8.9 million from $5.9 million in the same quarter last year, an increase of $3.0 million or 51.2 percent.
“We were pleased to see strong growth in insurance revenues, increasing sales of deferred annuities and immediate annuities without life contingencies, and continued strength in our capital base, which is important to efforts to further develop our business,” said Donald Barnes, Vice Chairman of the Board, CEO and president. “As we move further into 2012, we will continue to focus on efforts already underway to expand our annuity product offerings, a key element of our business, while also prudently managing our investment portfolio.”
To read previous earnings roundups for Q1 2012, see “8 Insurers Report Q1 Earnings: Aflac, MetLife, WellPoint and five others announce first-quarter financial results,” and “6 Insurers Release Q1 Results: Cincinnati Insurance, Travelers, UnitedHealth and three others release first-quarter figures.”
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