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, which included Aflac, MetLife, WellPoint and five others,click here.

 

Aon plc

Aon’s total revenue for Q1 2012 was $2.841 billion, a 3-percent increase compared with $2.76 billion for the same quarter last year. Net income was $249 million, a 2-percent increase compared with $255 million for the same quarter last year. Earnings per share attributable to shareholders was $0.71, which is the same as for the same quarter last year.

Earnings highlights

Risk Solutions revenue increased 3 percent to $1.9 billion with organic revenue growth of 4 percent.

Risk Solutions operating margin was 19.2 percent and the operating margin, adjusted for certain items, decreased 20 basis points to 21.4 percent.

HR Solutions revenue increased 3 percent to $945 million with organic revenue growth of 3 percent.

HR Solutions operating margin was 7.7 percent and the operating margin, adjusted for certain items, decreased 180 basis points to 16.5 percent.

Aon repurchased 2.1 million shares of common stock for approximately $100 million. Aon group also completed the change in corporate domicile to the U.K. from Delaware.

 

AIG

American International Group Inc. reported net income of $3.2 billion and after-tax operating income of $3.1 billion for Q1 2012, compared with $1.3 billion and after-tax operating income of $2.1 billion for the same quarter last year.

Net premiums written was $8.8 billion, a 3.7-percent decrease compared to Q1 2011, or 4.5 percent excluding the effect of foreign currency exchange rates. Diluted earnings per share were $1.71, after-tax operating income per share were $1.65 for the quarter. For the same quarter last year, diluted earnings per share was $0.31, and after-tax operating income per share was $1.34 for the same quarter last year.

“AIG has again delivered another strong quarter with our core insurance businesses all posting profits,” said Robert Benmosche, AIG president and CEO. “We also continue to make good on our promise to help the U.S. government profit from its investment in AIG. During the quarter, we retired the preferred interests of AIA Aurora LLC one year ahead of schedule and achieved the milestone of reducing total outstanding or authorized U.S. Government assistance by 75 percent.

Total operating income for the quarter was $2.362 billion, compared with $761 million for the same quarter last year. Pre-tax operating income for the quarter was $4.83 billion, compared with $3.12 billion for the same quarter last year.

 

Allstate Corp.

Allstate reported Q1 net earnings of $766 million, or $1.53 per diluted share, compared with $524 million, or $0.98 per diluted share for the same quarter last year, a 46.2-percent increase. Operating income was $710 million for the quarter, compared with $484 million, a 43.7-percent increase, in the same quarter last year.

Catastrophic losses were $259 million, compared with $333 million for the same quarter last year. The property/liability ratio was 88.1, compared with 89.9 for the same quarter last year. Book value per share increased 6.6 percent, the dividend was increased by 5 percent to $.22 per share, and the company repurchased $300 million of common stock. 

“Maintaining margins in auto insurance and continued implementation of our homeowner profit improvement program resulted in solid returns in our property-casualty business,” said Thomas Wilson, chairman, president and CEO of The Allstate Corporation. “Allstate Financial had increased operating and net income reflecting its return improvement program and increased partnership income. Overall premiums increased reflecting the acquisition of Esurance, higher average homeowners premiums and growth in emerging businesses.”

 

The Hartford

The Hartford reported Q1 2012 net income of $96 million, or $0.18 per diluted share, a substantial decline compared with $501 million, or $0.99 per diluted share, in the same quarter last year. Core earnings were $612 million, a 7-percent increase from $574 million in the same quarter last year. Core earnings per diluted share rose 11 percent to $1.25 compared with $1.13 in the first quarter of 2011.

"P&C commercial's pricing momentum continued and retention remained strong. Consumer Markets had favorable margins and new business trends, while Mutual Fund assets under management and sales increased from year-end levels,” said Liam McGee, chairman, president and CEO. Property/casualty written premiums for the quarter were $1,687 million, a 3-percent increase from $1,645 million in the same quarter last year.

McGee also said The Hartford will focus on the property/casualty, group benefits and mutual funds businesses to deliver superior performance and greater shareholder value, and would sell business units, including Individual Life, Retirement Plans and Woodbury Financial Services. “We also repurchased the Allianz debt and warrants in April, reducing interest expense and improving financial flexibility," McGee said.

 

Infinity Property & Casualty Corporation

For Q1 2012, Infinity Property & Casualty Corporation’s total revenues were $287.4 million, or $0.35 per diluted share, compared with $252.3 million, or $0.81 per diluted share, for the same quarter last year; net investment income declined to $9.7 million from $10.3 million for the same quarter last year. Net earnings for the quarter were $4.3 million, compared with $10.2 million for the same quarter last year.

Gross written premium grew 22.2 percent compared with the same period in 2011, with growth in six of the seven Focus States. California, Infinity's largest state, grew 15.0 percent compared with the same period in 2011.

Operating earnings declined for the quarter compared with the same period in 2011 as a result of favorable development on prior accident year loss and loss adjustment expense reserves recognized in the first quarter of 2012 of $0.1 million, pre-tax ($0.00 per diluted share after-tax) compared with $3.4 million, pre-tax ($0.18 per diluted share after-tax) of favorable development recognized during the first quarter of 2011. In addition to the decline in favorable development, net earnings in the first quarter of 2012 were impacted by a $2.7 million decline in net realized gains on investments compared to the first quarter of 2011.

 

Prudential Financial Inc.

In Q1 2012, Prudential suffered a net loss of $988 million, or $2.09 per share, reflecting a pre-tax charge of $1.5 billion relating to foreign currency exchange rates and the value of derivatives.

“These currency-driven value changes were largely offset by corresponding adjustments to accumulated other comprehensive income which are not reflected in net income or loss,” the company said in a press release.

After-tax adjusted operating income for the financial services businesses declined to $741 million, or $1.56 per common share, compared to $800 million, or $1.62 per common share for year-ago quarter.

Operational highlights for the quarter:

Premiums were $6.1 billion, compared with $4.82 billion from a year earlier.

Individual annuity accounts were $124.1 billion, up 9 percent from a year earlier. Gross sales were $5.0 billion; net sales were $3.2 billion.

Retirement accounts were $239.8 billion, up 12 percent from last year; total retirement gross deposits and sales were $9.0 billion, net additions were $404 million.

Assets under management were $636.8 billion, up 12 percent from the same quarter last year; net institutional additions (excluding money market activity) were $5.4 billion.

Individual life annualized new business premiums were $79 million, up 22 percent from a year ago.

Group insurance annualized new business premiums were $313 million, compared to $500 million a year ago.

 

UNUM

UNUM reported net income for Q1 2012 of $213.9 million, or $0.73 per diluted share, a 4-percent decline compared with $223.6 million or $0.71 per diluted share for the same quarter last year. Total revenues were $2.61 billion, compared with $2.56 billion for the same quarter last year.

“The solid performance in our Unum US and Colonial Life operations buffered the weaker than expected results in Unum UK and the Closed Block and allowed us to grow operating earnings per share by 4.3 percent,” said Thomas Watjen, president and CEO. “I am also very encouraged by the top-line growth we are seeing in our target markets, with strong sales and stable persistency levels.”

Unum US reported operating income of $205.9 million for the quarter, a 5.8-percent increase from $194.7 million in the same quarter last year. Premium income increased to $1,112.0 million, a 4- percent compared to $1,068.8 million in Q1 2011. 

Unum UK reported operating income of $38.8 million for the quarter, a 20.7-percent decrease from $48.9 million in the same quarter last year. In local currency, operating income decreased 18.8 percent, to £24.7 million from £30.4 million in the same quarter last year. Premium income was $170.7 million, a 2.2-percent increase compared with $167.1 million in Q1 2011.

For the quarter, Colonial Life reported a 4.8-percent increase in operating income to $69.7, compared to $66.5 million in the Q1 2011. The Closed Block segment reported operating income of $15.4 million, compared with $31.9 million for Q1 2011, driven by a decline in income from the long-term care line.

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