A number of insurers have begun to release their financial results for Q1. The following is a compilation of their announcements:
Allstate Corp.
Allstate’s net income for Q2 was $434 million, or 92 cents a share, a 2.6-percent increase from $423 million, or 86 cents, for the same period last year. Operating profit was $1.12 a share.
Net income for the quarter was $434 million, or $0.92 per diluted common share, compared to $423 million, or $0.86 per diluted common share, for the same quarter last year. The increase was driven by higher after-tax realized capital gains and operating income, the company said, which offset the after-tax loss of $312 million on extinguishment of $1.83 billion in debt.
Operating income increased to $529 million, $1.12 per diluted common share, from $432 million, $0.87 per diluted common share, for the same period last year and the company attributed the improvement to lower catastrophe losses compared to Q2 2012.
Property-liability net income was $617 million vs. $354 million for the same quarter last year, and the property-liability combined ratio was 96.1, a 1.9-point improvement. Pre-tax catastrophe losses totaled $647 million vs. $819 million for the same quarter last year and the underlying combined ratio increased to 86.9 percent for the quarter, 0.6 points higher than for the same period last year. Allstate’s full year outlook is 88 percent to 90 percent. “Should trends continue, the underlying combined ratio could be at the low end or below the full year outlook range,” the company said.
"We are successfully executing our customer-focused strategy to offer unique products and services to distinct consumer segments," said Thomas Wilson, chairman, president and CEO of The Allstate Corporation. "Property-liability premiums written increased 4.2 percent from the second quarter of 2012, with positive trends in all consumer segments which are served under the Allstate, Encompass and Esurance brands.”
CNA Financial Corp.
CNA Financial reported net operating income of $204 million, or $0.75 per share, and net income of $194 million, or $0.72 per share. The combined ratio for P&C operations in the second quarter was 101.5 percent. Net income was $194 million, compared to $166 million for the same quarter last year. Book value per share was $ 44.29, a 3-percent increase compared to $45.71 for the same quarter last year.
For the P&C operations, net operating income was $258 million for Q2 2013, compared to $163 million for the same period last year; the company attributed the increase to higher net investment income, improved current accident year underwriting results and a settlement benefit of $30 million after-tax related to workers' compensation residual market litigation. Those were partially offset by $23 million after-tax recorded in response to New York workers' compensation legislation.
Net written premiums for P&C operations were $1.72 billion, compared to $1.60 billion for the same quarter last year, the company said, representing a 7-percent year-over-year improvement, driven by the acquisition of Hardy and increased rates from CNA Specialty and CNA Commercial. The combined ratio declined to 101.5 percent from 101.7 percent for the same quarter last year.
For CNA Specialty, net written premiums were $756 million, compared to $718 million for the same quarter last year. Operating income was $148 million compared to $106 million for the same quarter last year. The combined ratio was 90.4 percent compared to 94.4 percent for the same period last year.
For CNA Commercial, net written premiums decreased $63 million to $826 million from $889 million, primarily driven by underwriting actions, including a transfer of $44 million of in-force business. Net operating income increased $55 million to $112 million from $57 million for the same quarter last year, primarily due to higher net investment income. The combined ratio increased 3.6 points to 111.7 percent compared to 108.1 percent for the same quarter last year.
"We are pleased to see the impact of our efforts clearly reflected in this quarter's results,” said Thomas Motamed, chairman and CEO. “Our second quarter and year-to-date P&C accident year loss ratios ex cats and development improved 2.9 and 2.4 points respectively over prior periods. In addition, rate continues to be strong and we are delivering top-line growth."
The Hanover Insurance Group Inc.
The Hanover reported Q2 2013 net income of $53.4 million, or $1.19 per diluted share, compared to $20.8 million, or $0.46 per diluted share, for the same quarter last year. Operating income was $46.8 million, or $1.05 per diluted share for the quarter, compared to $10.0 million, or $0.22 per diluted share, for the same period last year.
The combined ratio was 98.4 percent, including 5.5 points of catastrophe losses and 2.5 points of net favorable prior-year reserve development. Net premiums written were $1.24 billion, up 3.8 percent, driven by growth in commercial lines and higher share of premiums retained at Chaucer. Net investment income was $67.9 million. At June 30, 2013, book value per share was $53.62, excluding net unrealized gains, a 3.4-percent increase from Dec. 31, 2012; book value per share decreased 2.0 percent to $57.41 compared to the same period last year.
"We are pleased with our earnings this quarter as each of our businesses generated improved results. We have made substantial progress on all of our key priorities, and we remain on target to deliver on our strategic and financial goals for the year," said Frederick Eppinger, CEO.
The Hanover also repurchased 960,000 shares of common stock in the second quarter for $47 million; year-to-date the company has repurchased 1.5 million shares of common stock for $72 million at an average cost of $48.03 per share
MetLife Inc.
MetLife reported net income of $ 471 million for Q2 2013, compared to $2.264 billion for the same quarter last year. MetLife attributed the decline in profits to derivative losses, increases in interest rates, changes in foreign currencies and the impact of MetLife’s own credit.
Total operating revenues for Q2 2013 were $ 17.04 billion compared to $ 16.74 billion for the same quarter last year. Book value per share decreased 7 percent to $ 52.85 million from $56.83 million for the same quarter last year.
Operating earnings for the quarter were $1.6 billion, or $1.44 per share, an 11-percent increase compared to the same period last year. Operating earnings in the Americas grew 18 percent; Asia increased 18 percent. Operating earnings in Europe, the Middle East and Africa decreased 13 percent. Adjusted for one-time items in both periods, EMEA operating earnings grew 9 percent on both a reported and constant currency basis, the company said.
“MetLife delivered strong performance in the second quarter through favorable investment margins, expense discipline in the U.S. and good results in Asia,” said Steven Kandarian, chairman, president and CEO. “We continued to execute on our strategy by growing our top line in emerging markets and shifting our business mix toward lower capital intensive products. We expect our strategy will continue to increase shareholder value over time.”
Selective Insurance Group Inc.
Selective reported Q2 2013 net income was $27.1 million, or $0.48 per diluted share, compared to $0.3 million, or $0.01 per diluted share for the same quarter last year. Operating income was $23.8 million, or $0.42 per diluted share, compared to $0.2 million, or $0.01 per diluted share, for Q2 2012. The combined ratio GAAP was 98.9 percent compared to GAAP 106.9 percent for the same quarter last year. Total net premiums written (NPW) for the quarter were $462.2 million compared to $425.6 million in Q22012. Standard commercial lines net premiums written were $350.6 million compared to $320.5 million for the same period last year. Standard personal lines NPW were $78.9 million compared to $76.8 million for Q2 2012. Excess and Surplus lines NPW were $32.7 million compared to $28.3 million for the same period last year.
"We had a very strong quarter due to improvements in our underwriting operations as our granular pricing approach and sophisticated underwriting tools continue to be a key to success," said Gregory Murphy, chairman, president and CEO. "Overall net premiums written grew 9 percent due to standard lines renewal pure price increases of 7.4 percent and new business that was up 17 percent to $84 million. Standard lines retention remained steady at 84 percent — an indication of market stability.
